Charities to get recession funds

The money will target some of the most deprived communities

More than �40m is being put towards helping charities to assist people through the recession, the government is due to announce.

The plan, for England and Wales, will include awarding grants to deprived areas, a volunteering scheme, and funds to help non-profit organisations merge.

One charity group said the money was "a start" but more would be needed.

Last week the National Council for Voluntary Organisations (NCVO) asked the prime minister for at least �100m.

Ahead of Monday's announcement, Cabinet Office minister Liam Byrne said Britain would beat the downturn by "pulling together" with the help of charities and social enterprises.

But NCVO chief executive Stuart Etherington said more help would be needed as the recession progressed.

"It is important that the government and the sector continue to monitor the situation and that we target additional resources as and when is necessary," he said.

Social entrepreneurs

Mr Byrne is expected to say the �42m of funding will help charities providing employment advice, mental health and family support services in some of the most deprived communities.

Prime Minister Gordon Brown has said the government needs to work in partnership with the "people on the front line" to provide help during the downturn.

The funding will include up to �10m to help create more than 40,000 opportunities for people to learn new skills they can use in voluntary work.

A further �15.5m has been allocated to a Community Resilience Fund, providing grants to small and medium-sized organisations in deprived areas.

And �16.5m is to help with the cost of mergers, partnerships and office-sharing for at least 3,000 voluntary organisations.

The School for Social Entrepreneurs will also receive �500,000 to double the number of people it trains.

Meanwhile charity shops say sales are booming because of the credit crunch. But the increase combines with falling donations mean many report that their shelves are becoming bare.

And at the end of last year charities said they were being forced to cut staff and reduce services as they tried to cope with the economic downturn.

A survey of 500 charities by the Charity Commission suggested that one in four had seen donations drop, while one in five said they had experienced a surge in demand for their services.

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