Deadline: 5-Feb-25
abrdn Financial Fairness Trust has launched applications for its funding programme to tackle financial problems and improve living standards.
The focus is on personal and household finances. The interest lies in the money that comes into the household (income) now and in the future, the money that goes out (spending) and the money that remains (assets).
Aim
- They aim to address specific inequalities, differences and vulnerabilities through the work they fund.
- They aim to improve the lives of those living on low-to-middle incomes in the UK, not just those in poverty but those across the bottom half of the income distribution who are cycling in and out of hardship. Whilst it’s vital to ensure that those facing financial hardship are supported, they also believe it’s important to prevent people falling into financial difficulties.
- Some groups are more affected than others, and financial problems can be even greater for those facing multiple disadvantages. They are particularly interested in applications that address inequalities faced by younger people, black and minority ethnic people and disabled people.
- Closely linked to this are people who are vulnerable financially. This is where people, due to their personal circumstances, are especially susceptible to financial detriment, particularly when a firm, government or other organisation is not acting with appropriate levels of care. This includes vulnerability as a result of health problems, disability, or due to a difficult life event such as redundancy, bereavement or divorce.
- They believe that focusing on work that addresses the root causes, rather than supporting individual beneficiaries, is a more sustainable approach to improving financial well-being.
Focus Areas
- The funding programmes are focussed on three significant areas that influence financial well-being:
- Income: Having an adequate income is a key factor to improving financial well-being and creating financial fairness. For the majority of working-age adults their wages are sufficient, but many also need their earnings supplemented by social security. For over a decade, pay has stagnated and social security has declined in real terms. Whilst there has been progress on minimum wages, once stuck in low pay, it is difficult to escape and progress.
- Wages
- Social security
- Pensions
- Taxation
- Spending: The other side of the coin to what money people have coming in, is what money they have going out. Trying to increase income and decrease the cost of living are both necessary to improve financial wellbeing. Spending is an intrinsic part of the daily lives and having control of it is a key part of managing money. For some there is a tendency to spend impulsively and for a small minority compulsively, including gambling. Linked to spending is the need to access credit and difficulties that arise when there are problems keeping up with payments.
- Cost of living
- Consumer spending
- Gambling harms
- Borrowing
- Payment problems
- Net zero
- Assets: Having assets such as savings helps us feel secure. However, many have nothing to fall back on and are unable to deal with economic shocks. One-in-four have no savings and the majority of people do not save regularly. The move from defined benefit (final salary/career average) pension schemes has greatly reduced the sums being saved, but the introduction of auto-enrolment has reversed the decline in the proportion of employees saving. Wealth has hugely grown: however, it is unevenly distributed. Taxation of assets has not kept pace with this growth and contributes only a small amount to government revenues.
- Taxation
- Retirement saving
- General saving
- Housing
- Income: Having an adequate income is a key factor to improving financial well-being and creating financial fairness. For the majority of working-age adults their wages are sufficient, but many also need their earnings supplemented by social security. For over a decade, pay has stagnated and social security has declined in real terms. Whilst there has been progress on minimum wages, once stuck in low pay, it is difficult to escape and progress.
Funding Information
- There is no minimum or maximum size of grant and the amount you request should be the amount you need. The grants usually range between £10,000 and £200,000, with most between £50,000 to £120,000 in total. They sometimes make larger grants but these are rare. The largest grant to date has been £720,000.
- The amounts are usually spread over one, two or three years, and sometimes for shorter periods, for example six months. For example, if you are awarded a grant of £60,000, this could be £20,000 each year over three years, or £40,000 in the first year and £20,000 in the second.
- They occasionally make grants for longer periods. They sometimes cannot fund the full cost of a project and you may need to raise funds from other sources, especially if you are seeking a grant which is above the average amount they award.
Where they will fund?
- The registered office is in Edinburgh and they are also based in London. Whilst the remit is UK wide and the majority of the work will be of benefit to UK residents, they are keen to support work in Scotland, including UK-wide work which has a Scottish dimension to it. There are specific issues relating to geography, with some regions and areas of the UK faring better than others, which they aim to address through the work they fund. It is unlikely they will fund work which is solely focussed on areas smaller than a region, such as a neighbourhood, borough or town.
- They are interested in learning lessons from other areas (from within and outside the UK) and how good ideas and practice can potentially be replicated in the UK, and lessons shared here. The aim is not to transfer policies from one place or sector to another but to translate the learning in a way others can act upon in a way that is appropriate to the situation and circumstances in the UK.
Who they will fund?
- They fund organisations undertaking charitable activities. You don’t need to be a registered charity. Organisations they fund must have a governing body with at least three non-executive directors/trustees (at least three who are not employees of the organisation or affiliated to it in any other way). They will fund a wide range of organisations, including: voluntary organisations; think tanks; campaigning groups; research bodies; and universities.
- They are also able to partner with other funders, government, employers and regulators in jointly funding relevant work.
Ineligibility
- They will not support applications:
- For the direct delivery of services, unless this is testing and/or evaluating a new or existing approach which has good potential to lead to wider change and be of significant benefit.
- For work that does not address those on low-to-middle incomes living in the UK.
- For work that is not charitable.
- From individuals.
- For work that is primarily the responsibility of statutory authorities.
- From organisations which have fewer than three non-executive people on their governing body (trustees/directors). You must have at least three who are not employees of the organisation or affiliated to it in any other way.
- For work that has already taken place.
- For general appeals.
- From organisations seeking to distribute grants on the behalf.
- For the promotion of religion.
- From organisations whose accounts are in serious financial deficit.
For more information, visit abrdn Financial Fairness Trust.