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27 August 2009

Shaw Trust, the only major voluntary sector Pathways to Work provider, lost almost £3 million in the last financial year due to its involvement in the DWP programme.

According to the Third Sector website, Shaw Trust converted a profit of over £7 million last year into a loss this year because of the very high start-up costs involved in the Pathways programme. 

The Trust is now heavily dependent on government funding for its income, with £46 million of its £81 million turnover coming directly from the DWP.

Whilst Shaw Trust has sufficient reserves to cope with the current losses, it’s clear that if the economic crisis drags on it will be increasingly difficult for the charity to continue being a major provider of services to the DWP.

Further details from Third Sector.