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Dundee youth charity could face turbulent year as coronavirus causes funding crisis

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A Dundee youth charity has raised concerns over financial hardships they are to experience as a result of the coronavirus.

The Hot Chocolate Trust could face a turbulent year as the organisation anticipates a surge in demand following the pandemic.

The trust, which support hundreds of young people in the city to build relationship and prepare for adulthood, have used emergency government funding to enable staff to continue to support service users.

The emergency funds have been used to cover the staff costs and facilitate their move to working from home.

But charity leaders fear the heavy costs of responding to the crisis could lead to a funding shortfall over the next year.

A YouthLink Scotland report warned the sector will be hit with an immediate loss of £20 million, with further losses expected following lockdown.

The national agency, which includes the Hot Chocolate Trust, said the funding crisis could be “detrimental” if there is a youth mental health crisis.

Dave Close, executive director at Hot Chocolate Trust, said he is concerned that local organisations may be hit by the crisis over the next six to 12 months.

He said: “We have been able to access some of the emergency Covid-19 funds to a small degree to pay for some of the expenses of shifting our work largely to digital but most of these funds are focussed on either emergency purchases or short term frontline staff needs.

“One of my concerns is that rush of funds to very limited emergency responses now could create a backdraft effect and make less money available in six or 12 months’ time when the charity needs to find new funding.

“It’s going to get harder to find what we need and make the biggest difference that we can but I’m not worried about the future of the trust because of the engagement of the young people and the team of youth workers that we have.

“The needs of young people in our community are definitely going to grow, particularly around poverty and mental health and youth work has a really valuable impact in both of these areas.”