Communities turning to CICs to support social needs

The number of community interest companies (CIC) in Wolverhampton has trebled since the pandemic, according to research in the city.

"People are choosing CICs to respond to social needs and the low cost of setting one up, which appeals over establishing a charity or business," said Winston Lindsay, social care consultant.

CICs operate as a limited company to benefit to the community they serve. The number in Wolverhampton has grown from about 14 in 2020 to 56 in 2025, with eight formed this year alone, according to Lindsay.

Erica Gilmore set up Inspired Paths Learning Journeys three weeks ago to support children in the area to try out new activities, vocational learning and workshops to expand their learning, but said sourcing funding was not easy.

She is one of six volunteers who reach out to 200 to 300 families in the West Midlands and help them experience activities like crocheting, learning survival skills and tiling.

She said it grew out of a group of mothers in Wolverhampton organising educational activities for their children.

To set up a CIC, it must be registered with Companies House and have an "asset lock", which ensures assets are used for the benefit of the community and not for private gain.

"CICs sit somewhere between a traditional limited company and a charity", Lindsay said, "easier and quicker to set up than a charity and with more flexibility to trade."

Nationally, their number is also growing, with 37,000 registered CICs across the UK by March last year, the regulator of CICs reported.

"It was the best option for us as we can support the community," Gilmore said.

"Because it was growing we thought, turn it into a CIC because we could support more families and possibly get funding."

She said no-one gets paid and "everything that goes in, goes back out to help families" and the group was exploring lottery and council funding options, as well as setting up a fundraising page.

Lindsay, who works with the council and NHS partners on mental health initiatives, and founded Ark Training Social Care Consultancy, has helped groups from a wide range of background become CICs.

"There's lack of council and government funding and CICs are a preferred route people use now to respond... for example, a lot of food banks, and wellbeing groups were suddenly set up after Covid to support people," he said.

He added they were collectively making a "big impact" in Wolverhampton while "carrying a lot of the weight from social services and reducing some of the pressure on the local authorities".

Lindsay said the local authority was recognising more and more the role CICs played, and was now more supportive of them, adding the work volunteers did was "phenomenal".

"But it goes both ways, because the people who I work with are doing it because of compassion, regardless of what the local authority does," he added.

Faye Delaneyregistered her First Abide CIC, a Christian-based non-profit organisation in2022 for about £30, and spent her own money setting up a website and paying an accountant to help register with Companies House.

She received her first grant in 2023 from the National Lottery.

She distributed donated meals during the pandemic and wanted to expand her offering, and now also collects and sorts clothing and furniture, to give away at regular events she organises.

She also asks professionals to volunteer their time to offer mental health awareness support to parents.

"The challenge that we have is obviously the finance," she said.

"We're passionate about what we do... but sometimes there is this constant struggle of how do you support yourself and how do you support the work that you are doing?"

The reason behind setting one up has to be very strong, she said.

"It is a challenge and it will dip into your pocket, but my advice would be it is challenging. There's more knowledge, however the finance side is still quite challenging.

"Your 'why' has to be very strong as to why you're doing it and who do you want to benefit."

A council spokesperson said Access to Business was appointed in 2024 to support the growth of the city's social economy set up the first social enterprise centre in Tempest Street.

"Social value and environmental welfare form critical parts of the council's plan, and it is important support is in place for businesses and organisations who put these priorities front and centre," they added.

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