More than half of UK charities and two in five small and medium enterprises (SMEs) fear they may not survive the next five years as rising energy costs and increased demand for services push them to breaking point, new research has revealed.
The findings come from the latest Energy Diaries study by Cadent and Thinks Insight & Strategy.
The annual survey found that 52% of charities and 39% of SMEs are anxious about staying operational, while heating has become a “luxury” for 60% of charities and half of SMEs.
For charities, the squeeze is especially acute, with 57% reporting that energy bills are undermining services to vulnerable communities.
More than two in five (41%) have already reduced or changed the services they offer.
Dr Angela Needle, Director of Strategy at Cadent, said: “SMEs and charities are vital pillars of our communities and yet they are facing extraordinary challenges, with many doubting their ability to keep their doors open. Heating should not be considered a luxury but our findings show that for half of SMEs and three in five charities, this is the stark reality.”
In response, Cadent has partnered with the Energy Saving Trust to provide free guidance tailored to small organisations, including advice on government initiatives and cost-saving behaviours.
Paul Walmsley, co-founder of Social Brokers, warned energy costs are preventing charities from hiring staff or expanding services: “Year-round energy challenges amplify the strain… These costs prevent us from prioritising sustainability goals and meeting the growing needs of our community.”
Cadent said collaboration between policymakers, energy providers and community groups is essential to help charities and small businesses survive and thrive in the energy transition.
