The Almshouse Association Statement on Rising Energy Costs
Members of The Almshouse Association have been in touch to ask what support might be in place for charities who are facing significant increases in the cost of energy. Many are concerned about the impact this may have on WMCs and how this may affect residents.
Unfortunately, almshouses, and charities generally, do not benefit from any special rates when it comes to energy. We would normally advise members to switch providers for a cheaper deal, but currently it is extremely unlikely that switching would achieve a lower tariff.
The appropriate time to review costs is at your annual WMC uplift date.
The Association would currently advise that members evaluate the financial position, the current WMC and their residentsā€™ ability to pay without hardship. This should help you decide. The guidance from various sources is that costs will remain high and may climb higher.
What are our options to balance the books?
These might include adjusting WMCs if there is capacity to do so without causing financial hardship, or potentially exploring using charity funds to subsidise the increase in the short term. Trustees should decide what is the most appropriate solution for their individual circumstances. It would be advisable to discuss your circumstances with your energy provider to see whether additional support may be available to the charity or residents.
The Association is looking to work with the Government to call for charities to receive safeguards from future price fluctuations.
Posted 18 October 21