London Daily

Focus on the big picture.
Thursday, Sep 24, 2026

Scotland's charity sector hit by dramatic hike in energy costs

Scotland's charity sector hit by dramatic hike in energy costs

A community trust in Glasgow is having to choose between paying energy bills and paying staff, its manager said.

Dramatic increases in the price of electricity have blown apart the budgets at Govanhill Baths Community Trust.

Trust Manager Fatima Uygun said price increases meant it now cost the same to provide power to some areas as it did to pay for a staff member.

Without help, she fears the charity will be forced to make more cuts.

The community trust provides a range of mental health support as well as food and other services to people who need them.

Like every household, it is affected by recent soaring energy costs.

Ms Uygan told BBC Radio Scotland's Sunday Show: "Almost overnight, it has dramatically affected our work."

"Our budgets are usually set at the start of the financial year and very quickly we have had to adjust to prioritising our energy bills over delivering services, sometimes quite vital services around mental health which has come as a bit of a shock to us."

Like many charities in the same position, the trust has been forced to make urgent adjustments.

Fruit and veg cutbacks


Ms Uygun said: "In one venue our prices went up by 50% overnight because our energy provider went bankrupt. We were put on a different provider and where we had been paying £200 a month it went to £400 a month.

"That is the equivalent to someone doing sessional work or part-time work to deliver mental health services."

Having to pay more in bills means the trust has had to cut back on fresh fruit and vegetables for its People's Pantry food bank.

Mrs Uygun said the trust has had to cut back on fresh fruit and vegetables for its food bank


Last week, British Gas owner Centrica warned that high energy bills could affect household bills for the next two years.

Chief executive Chris O'Shea said there was "no reason" to expect gas prices would come down "any time soon".

Households and businesses are not the only ones feeling the pinch. Charities and volunteer groups are also struggling.

Those working out of old buildings which are not energy efficient are finding that heating them with increased prices puts a dent in the running costs.

And volunteer and community services are already stretched due to Covid.

Significant impact


The Scottish Council for Voluntary Organisations told BBC Scotland that rising costs were already having a significant impact on the services its members could provide.

It is likely to mean an increase in demand for things like money advice services and mental health support.

Ms Uygun said: "We'll have to make cuts if things don't change and that usually affects projects which are already a bit under-funded and are difficult to find funding for.

"So mental health support groups such as the local knitting club, or the lunch club, or cutting back on the variety of fresh fruit and vegetables for the People's Pantry, people will notice the difference unfortunately."

Mental health support groups such as the local knitting club are likely to be affected, Mrs Uygun said


So far, Govanhill Baths Trust has had no support from the local council or the Scottish government.

The charity feels it is something which will have to be addressed at a government level.

"The idea that energy companies are out of the goodness of their heart will cut profit - which is where this is all going - is not going to happen, Ms Uygun said.

"We are hoping the voluntary sector is putting enough pressure on the Scottish government to at least offer a price freeze or a reduction through some kind of exemption or subsidy.

"Without it, organisations like us at the coal face who provide these services are going to have to make difficult decisions and that is going to mean quite a lot more people are going to fall through the cracks."

'Limited options'


Kirsten Hogg, Head of Policy at the SCVO said: "It can be difficult for organisations to secure funding to cover overhead costs. Funding is often available for the direct costs of providing a project, but not the core costs of running the organisation, which could include heating and lighting of buildings.

"And it is common for voluntary sector contracts and grants not to be uplifted for inflation. We are aware of organisations that have received the same amount of money for up to six years, and have been expected to deliver the same service with no increase to cover rising costs.

"A dramatic increase in costs, such as we are currently seeing in relation to energy prices, is therefore unlikely to be covered by existing funders and will have a significant impact."

A Scottish government spokesperson said: "The third sector is a valued partner and we recognise the impact of rising fuel costs on our charities and voluntary organisations.

"Pricing in the gas and electricity markets is reserved, meaning the Scottish government's options to mitigate these costs are limited. Ministers have written to the UK government to call for urgent action to tackle rising energy costs."

Newsletter

Related Articles

0:00
0:00
Close
Royal Navy Commandos Complete Maritime Operations Training With US Navy SEALs
Vistry Profit Warning Adds to Concerns Over UK Housebuilding Conditions
UK Commits £343 Million to Major Expansion of Community Mental Health Services
Five Eyes Partners Back UK-Led Campaign Against Global Fraud Networks
UK Businesses Gain Full Access to £13 Trillion CPTPP Trading Bloc
UK Allocates Nearly £10 Billion for Council, Social and Affordable Housing
Chancellor John Healey Unveils Deregulation Drive to Accelerate UK Investment and Growth
Prime Minister Andy Burnham Sets Out Post-Brexit Foreign Policy Vision at United Nations
UK Reassesses Chagos Arrangements as Burnham Seeks New Path on Diego Garcia
Key Trends to Watch
Government’s “Buy British” Procurement Push Targets More Domestic Jobs and Industrial Capacity
Scotland Launches Four-Year Flood Resilience Programme With New Community Funding
Low-Income Renters Face Record Gap Between Housing Support and Private Rents
UK and US Test Torpedo Launch From British Undersea Drone in Defence Technology Milestone
Britain Pushes Artificial Intelligence Security Onto United Nations Security Council Agenda
Treasury Committee Defends Office for Budget Responsibility Independence Amid Fiscal Pressure
Scotland Records Eleven Per Cent Rise in Drug-Use Deaths as Cocaine and Nitazenes Drive Concern
Welsh Government Sets Four-Year Programme Around Health, Living Costs, Jobs and Housing
Study Finds Most People With High Blood Pressure in England Remain Undiagnosed
Britain Plans First National Workplace Health System to Tackle Economic Inactivity
England to Introduce Vocational GCSEs in Major Secondary Education Reform
UK Elevates Climate and Nature Risks to National Security Priority
Andy Burnham and Donald Trump Put Trade at Centre of First Major Bilateral Meeting
Andy Burnham and Ursula von der Leyen Push Ahead With Closer UK-European Union Economic Ties
UK Government Borrowing Jumps to Eighteen Point Three Billion Pounds Ahead of October Budget
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
Reform UK Names Helen Jenner as New Leader in Wales
England Expands Devolution of Transport, Skills and Economic Development Powers
Liberal Democrats Call for Temporary Fuel Duty Cut to Ease Cost-of-Living Pressure
UK Farmers Warn Drought Has Caused Crop Failures and Reduced Harvests
UK Fixed Mortgage Rates Approach 6% as Lenders Raise Borrowing Costs
YouGov Poll Puts Labour at 23% With Conservatives and Reform UK on 21%
Badenoch Presses Burnham to Increase Defence Spending and Cut Welfare Costs
UK Military Figures Warn of Growing Threats to Undersea Infrastructure and National Readiness
BP Moves Ahead With Sale of UK North Sea Oil and Gas Business
UK and ASEAN Endorse New Framework for Trade and Economic Cooperation
UK Consumer Confidence Falls to Three-Year Low as Borrowing Costs and Job Concerns Rise
UK Inflation Rises to 3.1% as Motor Fuel Costs Push Prices Higher
Bank of England Sets Multi-Year Plan to Wind Down Quantitative Easing Holdings
UK Borrowing Rises to £18.3 Billion in August Ahead of October Budget
Michelin Guide Faces Industry Questions Over Restaurant Inspection Coverage
English Woodlands Face Renewed Weather Stress From Dry Conditions and Strong Winds
Research Finds Extensive Alcohol, Gambling and Unhealthy Food Branding During 2026 World Cup
Five Charged After Newborn Baby Dies From Stab Wounds in Sheffield
BT Could Reap £2 Billion From Recycling Copper as Full-Fibre Network Expands
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
Reform UK Names Helen Jenner as New Leader in Wales After Dan Thomas Steps Down
Resolution Foundation Calls for Broad-Based Tax Rises to Fund Higher UK Defence Spending
Ed Davey Calls for Global Treaty to Halt Development of Super-Intelligent AI
Scotland Consults on Legal Price Caps for Essential Foods
×