• News
    • Latest news
    • News search
    • Health
    • Finance
    • Food
    • Career news
    • Content series
    • Try Devex Pro
  • Jobs
    • Job search
    • Post a job
    • Employer search
    • CV Writing
    • Upcoming career events
    • Try Career Account
  • Funding
    • Funding search
    • Funding news
  • Talent
    • Candidate search
    • Devex Talent Solutions
  • Events
    • Upcoming and past events
    • Partner on an event
  • Post a job
  • About
      • About us
      • Membership
      • Newsletters
      • Advertising partnerships
      • Devex Talent Solutions
      • Contact us
Join DevexSign in
Join DevexSign in

News

  • Latest news
  • News search
  • Health
  • Finance
  • Food
  • Career news
  • Content series
  • Try Devex Pro

Jobs

  • Job search
  • Post a job
  • Employer search
  • CV Writing
  • Upcoming career events
  • Try Career Account

Funding

  • Funding search
  • Funding news

Talent

  • Candidate search
  • Devex Talent Solutions

Events

  • Upcoming and past events
  • Partner on an event
Post a job

About

  • About us
  • Membership
  • Newsletters
  • Advertising partnerships
  • Devex Talent Solutions
  • Contact us
  • My Devex
  • Update my profile % complete
  • Account & privacy settings
  • My saved jobs
  • Manage newsletters
  • Support
  • Sign out
Latest newsNews searchHealthFinanceFoodCareer newsContent seriesTry Devex Pro
    • News
    • UK Aid

    UK Job Support Scheme offers little help for NGOs

    Despite the government's latest economic measures, experts are predicting "significant" job losses for the charity sector in the coming months.

    By William Worley // 28 September 2020
    U.K. Chancellor Rishi Sunak announces the government’s post-furlough Job Support Scheme during a COVID-19 press conference. Photo by: Pippa Fowles / No 10 Downing Street / CC BY-NC-ND

    LONDON — NGOs in the United Kingdom’s development sector face a fragile and uncertain future, despite the latest economic measures announced Thursday by Chancellor Rishi Sunak.

    The U.K.’s finances were thrown into disarray by the COVID-19 pandemic, which brought large swathes of economic activity to a standstill. NGO budgets were hurt by a £2.9 billion ($3.74 billion) cut to the U.K. aid budget in July and the disruption of fundraising activities.

    But unlike many businesses, which are seeing reduced demand for products and services, NGOs say they are having to balance the twin pressures of increased demand for their work and less money to pay staff.

    That means the government’s latest measures are a poor fit for the needs of the sector.

    “There’s more demand and more work to do than ever before — but we don’t have the money to pay the staff to do it,” Martin Drewry, CEO at Health Poverty Action told Devex by email. He added: “It’s incredibly hard for us to reduce staff hours … what we need is help covering the cost of employing them while fundraising is curtailed.”  

    The flagship announcement of the government's Winter Economy Plan was the introduction of a Job Support Scheme, to replace the furlough scheme that will end Oct. 31.

    The Job Support Scheme is designed not for the third sector but to “protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce.”

    The scheme will help organizations whose employees work at least a third of their normal hours, with the government paying a third of the wages for time not worked, capped at £697.92 per month.

    But with many NGOs unable to reduce staff working hours — and those who do are required to pay a share of the unworked hours, meaning the scheme remains relatively costly for employers — Richard Sagar, policy manager at the Charity Finance Group, predicted “significant job losses in the sector in the coming months.”

    The measure is only “likely to benefit a relatively small number of larger [nongovernmental] organizations,” according to Mike Wright, director of membership, communications and training at Bond, the U.K. network for NGOs.

    “Many charities, particularly smaller ones, have struggled to make use of the schemes put in place during COVID-19, which haven't been designed with some sectors, such as ours, in mind,” he said.

    Clarity is needed over whether staff employed globally or just in the U.K. count toward the scheme’s size thresholds — small and medium-sized organizations are automatically eligible, while larger ones need to meet additional criteria — and whether employees can work voluntarily, according to Drewry.

    Staff working voluntarily on top of their paid hours could make the Job Support Scheme “viable for some posts,” Drewry said.

    But if voluntary work above contracted hours was not allowed, it would be of “little or no benefit” to his charity “as we need our staff to keep working in order to cover the organization’s core costs and keep it alive.”

    Similar concerns are believed to apply across the U.K.’s development sector.

    “We estimate that less than 10% of the smaller organizations that make up the bulk of the sector have made use of the furlough scheme, and are even less likely to make use of its replacement,” Wright said.

    “Meanwhile, the international development sector as a whole is in a perilous and precarious funding situation, fuelled by government cuts and the impossibility of restarting public fundraising, with many organizations uncertain about their future beyond the next six months.”

    Drewry called for restrictions on existing government grants to NGOs to be temporarily eased in order to cover the core costs of running organizations, and to reduce bureaucracy around renegotiated grants.

    More reading:

    ► COVID-19 job losses accelerate in development sector, survey results say

    ► COVID-19's unequal impact on global development professionals

    ► Remote work takes a toll on development professionals' well-being

    • Institutional Development
    • Careers & Education
    • United Kingdom
    Printing articles to share with others is a breach of our terms and conditions and copyright policy. Please use the sharing options on the left side of the article. Devex Pro members may share up to 10 articles per month using the Pro share tool ( ).

    About the author

    • William Worley

      William Worley@willrworley

      Will Worley is the Climate Correspondent for Devex, covering the intersection of development and climate change. He previously worked as UK Correspondent, reporting on the FCDO and British aid policy during a time of seismic reforms. Will’s extensive reporting on the UK aid cuts saw him shortlisted for ‘Specialist Journalist of the Year’ in 2021 by the British Journalism Awards. He can be reached at william.worley@devex.com.

    Search for articles

    Related Jobs

    • Senior Organizational Resilience Specialist
      Mandaluyong, Metropolitan Manila, Philippines | Metropolitan Manila, Philippines | Philippines | East Asia and Pacific
    • Individual Consultant: Merit Point Criteria Research and Implementation Advisor
      Central Asia | East Asia and Pacific | South Asia
    • Individual Consultant: Implementing Interest-Free Monetary Policy and Sharia’ Compliant Government Securities
      Ethiopia | Eastern Africa
    • See more

    Most Read

    • 1
      Opinion: Mobile credit, savings, and insurance can drive financial health
    • 2
      FCDO's top development contractors in 2024/25
    • 3
      Strengthening health systems by measuring what really matters
    • 4
      Opinion: India’s bold leadership in turning the tide for TB
    • 5
      How AI-powered citizen science can be a catalyst for the SDGs

    Trending

    Financing for Development Conference

    The Trump Effect

    Newsletters

    Related Stories

    UK AidUK small charities brace for crisis amid aid rollback

    UK small charities brace for crisis amid aid rollback

    Devex CheckUpDevex CheckUp: Tallying the health sector job losses caused by USAID upheaval

    Devex CheckUp: Tallying the health sector job losses caused by USAID upheaval

    UK AidWith FCDO slashing budgets, where will UK NGOs turn for funding?

    With FCDO slashing budgets, where will UK NGOs turn for funding?

    The Trump effectUnceremonious sacking may preview the future of privatizing US aid

    Unceremonious sacking may preview the future of privatizing US aid

    • News
    • Jobs
    • Funding
    • Talent
    • Events

    Devex is the media platform for the global development community.

    A social enterprise, we connect and inform over 1.3 million development, health, humanitarian, and sustainability professionals through news, business intelligence, and funding & career opportunities so you can do more good for more people. We invite you to join us.

    • About us
    • Membership
    • Newsletters
    • Advertising partnerships
    • Devex Talent Solutions
    • Post a job
    • Careers at Devex
    • Contact us
    © Copyright 2000 - 2025 Devex|User Agreement|Privacy Statement