2025-03-31-accounts

REGISTERED COMPANY NUMBER: 02914384 (England and Wales) REGISTERED CHARITY NUMBER: 1046018

REPORT OF THE TRUSTEES AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

CITIZENS ADVICE MERTON AND LAMBETH LIMITED (A COMPANY LIMITED BY GUARANTEE)

Hartley Fowler LLP Statutory Auditors Chartered Accountants

27-37 St George's Road Wimbledon London SW19 4EU

4th Floor Tuition House

CITIZENS ADVICE MERTON AND LAMBETH LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

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Page
Chair's Welcome 1
Report of the Trustees 2 to 14
Report of the Independent Auditors 15 to 17
Statement of Financial Activities 18
Statement of Financial Position 19
Statement of Cash Flows 20
Notes to the Statement of Cash Flows 21
Notes to the Financial Statements 22 to 36
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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

CHAIR'S WELCOME FOR THE YEAR ENDED 31 MARCH 2025

I am pleased to present our 2024-2025 Trustees Report and Accounts. During the period of the report high levels of hardship have remained for the majority of our clients, resulting in many clients presenting more complex cases for the team to address. We remain wholly committed to the success of the range of support delivered predominantly in Merton and Lambeth, on behalf of our commissioners and funders, with so many positive outcomes for our clients.

The number of clients supported reduced by two percentage points on last year's figure, as indeed did client issues. The team supported 24,436 clients, who presented 42,154 issues this year. Against these similar client numbers and issues I am delighted to report that the direct financial outcomes achieved for clients increased by an impressive 39% to £4.2m. This increase will have delivered very positive outcomes for local families and individuals experiencing high levels of hardship, which the team are rightly proud of.

In addition to the direct financial benefit of over £4m achieved for individuals, the overall support of the team is considered to have a total worth of £13.2m to the people we helped, with overall financial value to society of £17.7m.

Client demand has remained high during the year. We have worked hard to recruit to match the demand but this has been difficult. As a local charity we continue to work hard to afford a team to address continued high levels of demand for our services. Our funders understand the challenges posed by such high need for our service. They support us, where possible, to retain the high quality, fully accredited services that we provide.

With public sector budgets remaining under considerable pressure, although we get continued financial support from funders, we have increased activity to attract and retain volunteers, who remain key to our overall success. Our amazing volunteers continue to contribute so much to our organisation and have our deepest thanks for their time and commitment.

I would also like to recognise our Trustee Board members who additionally add so much value in the way they support the team, enabling the overall success of the portfolio of services we provide. Trustees are also volunteers and their range of talent and expertise remains a huge asset to the Charity. In 2024-2025, two Trustees stood down following long service and real commitment so further thanks to them.

During 2025 the whole team, including volunteers and Trustees, will be influencing the shape of a CAML 2030 strategy which will seek to understand and address the challenges and opportunities over the next five years. With significant financial sustainability challenges going forward I know our collective determination to continue supporting our clients will continue to have a lasting impact on individuals, their families and local communities.

Elizabeth Coulter

Chair of the Board of Trustees

30 October 2025

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2025. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Principles, Aims and Strategic priorities

Citizens Advice Merton and Lambeth (CAML) is one of London's leading and busiest advice charities. We support individuals and families who live, work or study primarily in the London Boroughs of Merton and Lambeth, but also elsewhere. We also work to raise awareness and understanding of the challenging issues affecting individuals and our communities.

The charity's objects are to promote any charitable purpose for the public benefit by the advancement of education, the protection and preservation of health and the relief of poverty, sickness and distress for the benefit of the communities we serve.

We were one of the first Citizens Advice services to open our doors in 1939, so in September 2024 the team and partners celebrated 85 years of providing our services and support, which remain as important today as they were when our work began.

Our Purpose

Supporting people to resolve their advice problems and change their lives for the better. We do this on a free, confidential and impartial basis by:

• Providing advice and information services to support people in resolving the problems they face; and

• Supporting the improvement of policies and practices that affect people's lives both locally and nationally.

Our Values

Clients and Beneficiaries first

• We work for the public and place the interests of our clients and communities at the heart of our high quality advice, information and support.

• We collaborate with other organisations and partners for the benefit of our clients.

Professionalism

• Working together as a team we take pride in doing things properly, in making a real difference.

• Our staff, volunteers and trustees act with integrity.

• We support our team with on-going training and mentoring to achieve the best for clients and beneficiaries.

Compassion

• We believe everyone should have access to social justice.

• We value diversity, challenge discrimination and create a culture where all can flourish.

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

The Principles and Aims of CAML's Work and Services

We provide advice services responding to clients needs via the telephone, online and face-to-face.

Our aim is to empower clients to better help themselves. But we are always here for further support and advice as and when needed.

Our approach embraces the following principles:

Build and foster trust - With our clients, our partners, and those we work closely with.

Embrace joint working and collaboration - To meet individual needs, tackle wider strategic issues and maximise resources we need to work together, drawing on the diverse skills, knowledge and experience of the CAML team, our partners and those we work closely with. Collaborative working ensures the best outcomes for our clients.

Work flexibly - We know the needs of individuals, families and communities change over time - in terms of changing demographics, challenges individuals and families face, and how they prefer to receive support. To ensure we continue to meet clients needs and demands, CAML's professional, high quality advice services need to evolve over time.

Supportive - The challenges clients face are increasingly complex which can be immensely stressful for them, their families and those who support them (including the CAML team). At CAML we are here for our clients and our team. We recognise that to best support clients we need to ensure those who work and volunteer with us are comprehensively supported. In the past year we have developed and implemented enhancements for our team including improved support and supervision, implementation of recommendations from volunteer review and team training.

Evidence based - The design, delivery and evaluation of services must be evidence based. Although we're not a large charity, we need to ensure that evaluating and demonstrating impact and delivering value for money is embedded within what we do.

Quality Assurance - As a member of the National Citizens Advice network, all our advice work is subject to professional quality assurance standards so we can ensure the best standard of support is being consistently delivered. In addition, monitoring and recording of client satisfaction is an integral part of our services. This information includes client profiles which enable us to monitor that our services are meeting the needs of the community including hard-to-reach groups such as those with additional communication needs or enhanced support through a range of delivery models to maximise access (phone, email, online, face-to-face, drop-in and appointments at multiple community venues, where possible close to where clients reside).

We record, monitor and measure customer satisfaction in a variety of ways. We have detailed information (with consent) on how we have supported clients and the number of issues resolved. We can also value economic and financial gains, the latter of which have improved considerably in the 24/25 financial year.

With national Citizens Advice, clients are invited to participate in feedback. Where the client agrees, a third party organisation contacts them to complete a survey (telephone or online) to reflect their experience with CAML.

Looking forward, we are considering how AI can help to lessen administrative time attached to the services we provide. The intention is to maximise the benefit of advisor time with clients and minimise the time producing records and case notes to our usual high standards, as independently verified.

"I have always found my local CA office [CAML] to be extremely helpful!!! They helped with my long standing case to reach a successful outcome. Cannot recommend highly enough." - Client

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

Strategy 2021-2027

In 2021 we developed and implemented a five-year strategy in consultation with staff, volunteers, funders, commissioners, clients and other stakeholders. The strategy was considered valid though to 2027 by the Board, who agreed to develop a new five year strategy during the 2025 calendar year, looking ahead to 2030. A strategy event was held with all staff, volunteers and a majority of Trustees in September 2025 to begin the process of shaping the new strategy CAML 2030.

Strategic Priorities 2021-2027

1. To deliver the highest quality advice and support across the range of our services.

2. To use technology to enable multi-channel access and to support as many clients as we can in the way that best meets their needs.

3. To ensure our services are accessible by:

a) Prioritising face-to-face support for those who most need it.

b) Finding other means to help vulnerable clients where that would be more effective.

1. To invest in quality training and supervision to make the most of our exceptional staff and volunteers .

2. To build the long-term success of the charity by prioritising financial sustainability and by attracting more investment from our communities.

Public benefit

The Trustees have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission. The company's objects are to promote any charitable purpose for the public and preservation of health and the relief of poverty, sickness and distress but without limitation, for the benefit of the community in London Boroughs of Merton and Lambeth and surrounding areas; specifically, to provide free, independent, confidential, impartial advice, advocacy and information to the public on civil, financial, legal and other matters.

The Trustees refer to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the aims and objectives of the company and in planning its future activities. The Trustees consider how planned activities will contribute to the aims and objectives they have set.

The Charity believes its strategy should be a living document, engaging with all our stakeholders and being actively reviewed and enhanced in response to the rapidly changing social, political and economic external environment. To ensure that we remain relevant and effective in responding to the needs of our local communities, we are committed to building on what we know works, involving our partners, commissioners, funders, staff, and volunteers.

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

ACHIEVEMENTS AND PERFORMANCE Charitable activities

Our services

CAML provides a range of services and specialist projects primarily for the residents of the two London boroughs of Merton and Lambeth, but also wider London/elsewhere. The demographics of the two London boroughs differ, and our funding and hence services and projects in the respective boroughs also vary, albeit that some of our core services are consistent in each borough. Our focus remains on each and every client and their particular situation, which continue to typically be more complex and can also change following changes in Government policy, especially in regards of eligibility criteria for key benefits.

We work in partnership with other organisations, including considering new partnerships with other organisations, knowing that together we can often achieve better outcomes for individuals and families in need. Our information, support and advice services are provided via telephone, online, video conference and face-to-face, plus a range of specialist services and projects.

Although we have a modest portfolio of funding sources, unfortunately we do not have the resources to immediately support everyone who contacts us. The high number of clients we have supported has only been possible through the continued commitment of our staff team, our amazing volunteers, our partners and our fantastic funders/supporters.

"My advisor was very helpful and made me feel that someone really had an interest in my problem, and was doing everything they could to help." - Client.

A year of ongoing hardship and challenges for our clients

Client demand continued to exceed our ability to support people as promptly as we would like during the 24/25 financial year, with generally high levels of hardship, high costs and low incomes creating challenges for clients that they require our help to address. As an employer we have been vigilant regarding the welfare of our team, including providing additional non-pay benefits, including a new Employee Assistance Programme (EAP) to support our team from a wellbeing point of view so they are able to continue to provide excellent service to clients.

In addition to our core contracts from the two boroughs for overall advice, funding continued for specific cost-of-living (CoL) advice projects in both Merton and Lambeth, including with the benefit of GLA funding. The active programme in Merton to provide Saturday CoL events were all supported by the CAML team.

Clients helped and value generated

During the year we supported over 24,436 clients , two percentage points lower than last year's figure. Client issues also reduced by two percentage points to 42,154 . The direct financial benefit provided to clients did however increase by an impressive 39% to £4,210,501 . The figure does not include people who accessed the self-help resources on the CAML website. Visits to our website in the last year have doubled to 68,000.

For every £1 invested in our services in 2024-2025, we generated*:

By helping stop problems occurring or escalating, we £1.89 in savings to government and public services (fiscal reduce the need for public services (health, housing, out benefits) of work benefits).

£13.03 in wider economic and social benefits (public value)

Supporting and helping to solve residents' problems improves lives - and this means better wellbeing, participation and productivity for residents, communities and the boroughs we serve.

Through our services and support we can increase people's income, help write off debt, take up benefits £9.74 in financial value to the people we help and resolve consumer issues.

*Data calculated using Treasury impact model available to Citizens Advice network.

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

Main public advice services in Merton and Lambeth Boroughs

CAML delivered general advice and information services for Merton and Lambeth residents by telephone (Adviceline) - 33% of clients, email - 32% of clients, in-person drop-in sessions at charity offices in Mitcham, Morden and Kennington - 35% of clients, closely consistent with the previous year, plus through our website (caml.org.uk). Our general advice support encompasses information support, advice needs assessments, advice appointments and referral to specialist advice services provided by CAML's special projects, pro bono law partners or other organisations. For more about special projects and pro bono support see below.

The main topics we received enquiries about across all our services were benefits, housing and debt issues. Within benefit enquiries, Personal Independence Payments (PIP) were the most prominent issue supported by the team. Housing and debt issues accounted for a third of our work. The top debt issues that people came to us for help with were council tax arrears, fuel debt and housing association rent arrears.

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85% of demand from: Those less than 3%
Benefits and tax credits 25% Financial services & capability
Housing 21% Consumer goods & services
Debt 10% Health & community care
Universal Credit 10% Relationships & family
Immigration and asylum 7% Utilities & communications
Legal 6% Travel & Transport
Charitable Support & Food Banks 3%
Employment 3%
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Adviceline services

Our Adviceline telephone and email service provides information, assessments and support through two Advicelines - one for Merton and one for Lambeth.

Continued high levels of hardship has meant the demand for Adviceline across both local authorities continues to create volumes which the team are not able to respond to as promptly as we would like. During the year we supported over 12,000 calls and online queries, but demand levels continued to result in individuals facing potentially long wait times to speak with a team member. Additionally the complexity of individuals' circumstances and support requested has created longer average call times with more pressure on the team.

"I first reached out to them several years ago and they went above and beyond to help me resolve my issues. I believe that if it wasn't for the help I received from that call I probably wouldn't be alive today. That call saved my life and eventually helped me to build and sustain the wonderful blessed life I now have. Thank you so very much." - Client

Case study: Kevin's* no fault eviction

About to turn 60, Kevin was in a fix. His upstairs neighbours were troublesome. They'd caused leaks and made false accusations against both Kevin and his landlord. The whole situation led to his landlord deciding it was time to sell - despite Kevin having paid his rent on time for the last 20 years.

The landlord gave Kevin a section 21 no fault eviction notice. This added to Kevin's stress levels - his serious mental and physical health problems had prevented him working for many years. His local authority mental health support worker had left and not been replaced. In despair, he called CAML's Lambeth Adviceline service.

Our adviser reassured Kevin that he could not be thrown out of his flat overnight. We explained that section 21 notice periods must be at least 2 months, that landlords can't go to court until notice periods end, and that bailiffs then had to give at least 2 weeks' notice of any actual eviction. We showed Kevin how to contact the council's housing options team for help in finding another place to live, and their adult social care team for an assessment of his support needs.

Kevin put the phone down heartened that he knew a way forward and that he could contact us again if needed.

• Names and identifying details have been changed to preserve confidentiality

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

In-person services

High levels of hardship resulted in increased numbers of clients seeking in-person support. During the year we supported 5,674 people with on-the-day information and advice assessment support, a reduction of 9% on the prior year. Additionally we supported 1,955 clients with generalist advice appointments.

Merton and Lambeth residents continued to face complex challenges, sometimes engaging with us very late in the day which can add to the challenge of finding successful solutions. We endeavour to prioritise face-to-face support for clients who need it, including those with complicated situations, who are vulnerable, or needing complex casework.

"Was very grateful for the support which I was given because I just couldn't deal with any of this on my own not with all my health issues, thank you kindly." - Client

Key Demographics

Client demographics across CAML's advice services:

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Gender Age Ethnicity
Female 62% <25 years 3% Black 39%
Male 38% 25-29 6% White 31%
Other/refer not to say 0% 30-39 20% Asian 14%
40-49 23% Mixed 8%
Disability 50-59 22% Other 8%
60-69 17%
Disabled 7% >70 9%
Long term health condition 52%
No/prefer not to say 41%
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Many clients, for understandable reasons, may choose not to disclose health conditions. The demographic information above is largely consistent with the prior year, with no significant changes in demographics evident.

We continue to support clients mentioning mental health concerns but not disclosing a specific condition. CAML continues to deliver a contract with South West London & St Georges NHS Mental Health Trust supporting clients who are formally receiving mental health support. We continue to support any safeguarding concerns raised by clients. We have comprehensive safeguarding policies and procedures and work closely with statutory teams as appropriate to support our clients.

Case study: Lois* banks on support from CAML

In her late 80s, Lois lives on her own and loves her independence. As well as her state pension she has a small private pension and some modest savings.

She got a phone call from someone saying they were investigating criminal bank staff who were taking money from people's bank accounts. They told her to go to a specific branch and withdraw £1,500 in cash and, if asked, to say it was for a new bathroom. She was then to post the money to a given address. She did as she was told. They did this several times, telling her to use different branches and to keep quiet about having been asked to get the money out. The bank asked no questions.

A few days later, she went to withdraw some cash for herself but found her card had been stopped. The manager told her that she had been scammed out of almost £10,000. They said there was nothing they could do because she had authorised the withdrawals. She notified the police and Action Fraud.

Worried sick because she had lost most of her life savings, Lois came to a drop-in session at CAML's Mitcham office. She wanted to know if there was any further action she could take to get some or all of her money back. With her permission, we wrote to the bank and asked why they hadn't asked her for paperwork proving she was having her bathroom renewed, and why bank staff hadn't been notified about all these large cash withdrawals. As a single elderly person, Lois was a typical target for scammers so the bank should have implemented banking protocol much earlier.

• Names and some details have been changed to preserve confidentiality

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

Specialist Services Review

CAML's projects provide specialist advice and casework support or focus on specific issues, groups and/or localities.

Lambeth Children's Centre service

This is an outreach service with dedicated advisers based in Better Start Children's Centres across Lambeth supporting families. During the year, we supported 353 families (a rise of nearly 22% compared to the previous year) with over 3,774 issues. Alongside the increase in families supported, the number of issues increased by a third - primarily benefits, debt and housing.

Londoners (GLA)

CAML is one of many local Citizens Advice offices funded by the Greater London Authority (GLA). Our GLA-funded Adviser provides general advice and support for Londoners. CAML works with community groups and organisations including Merton Carers Support and Mushkil Aasaan. CAML is also funded to employ a specialist welfare benefits adviser who takes referrals from CAML and other Citizens Advice charities in South and West London. We also started a new service where faith/community groups across all London boroughs could refer clients needing our assistance. 767 Londoners were supported in total.

Merton Cost-of-Living

Our Merton Cost of Living grant supports a dedicated team of generalist and debt advisers to provide a mix of drop-in sessions and pre-booked appointments in outreach venues including Merton libraries and Wide Way Medical Centre. We supported 956 Merton residents in 2024-2025, which is 55% more than the previous year.

Immigration Service

The Trust for London funds us to provide a specialist immigration advice service, working in partnership with three other London Citizens Advice charities. Our dedicated Immigration Adviser supports residents across five London boroughs. The service supported 268 clients with 1,063 issues. The demand for this specialist support continued to exceed our forecasts.

Merton Disability Welfare Service

Our Specialist Disability Caseworker delivers expert advice to disabled people living in Merton. The service is part-funded by London Borough of Merton, with the charity supporting the balance following the decision of Trustees to invest in this much-needed programme focusing on supporting some of the most vulnerable people in Merton to access/receive the disability benefits to which they are entitled.

125 individuals were supported through the service with a mix of advice and casework, addressing 610 issues, Due to clients' needs and circumstances nearly all appointments are face-to-face. Many cases involve appeals against disability allowance rejections. In the last year 33 of 36 appeals supported were successful to the benefit of the client.

Wimbledon Guild

For a number of years we have worked in close partnership with Wimbledon Guild with a dedicated CAML adviser based in their central Wimbledon venue supporting clients one day a week. During the year, we supported 79 clients with 298 issues.

Wimbledon Guild additionally provided funding for a specialist debt adviser one day a week to respond to the cost-of-living crisis. Our adviser supported 34 clients with 185 debt issues. The debt service has now finished.

South West London and St George's Mental Health Trust project

In 2024-2025 we started to run a new project in conjunction with South West London and St George's Mental Health Project as part of the national Community Mental Health Transformation Programme. This offers full advice (including casework) to clients with mental health issues who are out-patients of the NHS trust. In total 79 clients were supported in 2024-2025.

Lambeth Cost-of-Living

Our Lambeth Cost of Living grant supports a generalist advice service in our Kennington Hub, at Streatham JobCentre plus and Gracefield Medical Centre. In total we assisted 645 clients in 2024-2025.

Pro Bono Advice

CAML continued to partner with two law firms in 2024-2025 to provide clients with free initial legal advice on housing matters. Duncan Lewis Solicitors accepted referrals for telephone advice and Abbotts Martin saw clients referred by us in Kennington. We are grateful for their continued support and the valuable advice they provide to our clients.

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

Communications, Research & Campaigns

We have a fully effective Research & Campaigns (R&C) team of volunteers who support both National Citizens Advice campaigns and also help to raise policy issues at local level with local Councillors and Members of Parliament to influence policy changes that could benefit our clients. To ensure that National Citizens Advice's policy work is informed by the experiences of the people of Merton and Lambeth, our advisers, assessors and the Adviceline team sent National Citizens Advice 4,526 evidence forms, covering 1,078 problem issues faced by our clients. Challenges with the benefits system contribute to around a third of these issues, but housing concerns, in both the private and social rented sectors continue to be a key problem for clients. The case studies regularly shared with National Office are considered as high quality and effective in promoting the benefits for clients of the services we provide. Our Senior Manager who oversees and guides the R&C team was asked to present a CAML case study at the 2024 National Citizens Advice annual conference.

We also engage with the wider community through regular posts on our website and social media networks including Instagram and LinkedIn. In addition to physical promotional information being visible at our outreach locations, staff have regularly attended weekend cost of living events. We retain strong links with local foodbanks as communication hubs for our services, plus other outreach locations where we can take advice into community locations, such as libraries and GP Practices.

Volunteers

Volunteers are a vital part of CAML's services and the organisation's contribution to our local communities. All volunteers receive a comprehensive induction and ongoing training with daily support and supervision from dedicated staff members. National Citizens Advice calculates that CAML volunteers gave an estimated £294,500 worth of time during this financial year.

Following previous years of reduced volunteer numbers (which is part of a national trend), we needed to broaden both how we attracted volunteers and to provide more options of what volunteers could do to support overall service to clients. To do this, the team reviewed our process for recruiting volunteers and made some changes to increase and improve volunteer recruitment.

We additionally welcomed three interns during the year who worked on different projects for an eight week period, including producing a new slide deck for volunteer induction. Later in the year we also started to attract what we term as 'consultancy volunteers' who have specialist experience and skills which we do not have in house, who do not necessarily volunteer regularly, but will help with specific pieces of work on a pro-bono basis.

"CAML never forgets that we are volunteers and genuinely values our contribution. It is a real privilege to meet our clients, many of whom have complex problems but are dealing with them with grace. I often feel that I haven't done much to help, but the clients are incredibly grateful. It is such an eye-opening and rewarding role." - CAML Volunteer

Staff

During the 2024-2025 financial year, CAML employed an average of 40 members of staff (full time and part time). In full time equivalent (FTE) terms this represents an average of 32 staff. As core funding drops in real terms and payroll costs increase this makes it a challenge financially to increase staff resources to address increased client demand. The Trustee Board support consideration of ways to retain great staff and have increased non-pay options including an Employee Assistance Programme (EAP) which has been available to all staff and volunteers from May 2025.

We continue to employ the best and highest quality staff members that we can and continue to maintain full or near full staffing levels throughout the year to ensure the charity continues to provide the best service provision possible and deliver on agreed targets.

CAML's support

We believe that investing in and listening to our team makes us a better organisation. We involve staff and volunteers in the design and delivery of services and how we work. We regularly survey and seek feedback and also have a strong commitment to professional development and continuous training. We are proud of our team and are delighted when individuals wish to progress their career and choose to do so with the charity, including volunteers successfully applying for staff roles and staff progressing to supervision and management roles with our support.

We would like to thank every member of the CAML family. Their professionalism, commitment and dedication ensure tens of thousands of individuals and families throughout Merton and Lambeth receive the right support when they need it most.

"Thanks for listening. Thanks so much for your help and support with this. I really appreciate it." - Client

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

FINANCIAL REVIEW

Financial position

In the past year CAML had a small increase in its income level to £1,381,163 from £1,279,534 the previous year. This was as a result of some new funding streams, with most existing streams showing no change from the previous financial year.

Expenditure also rose to £1,348,941 from the prior year figure of £1,299,971, largely as a result of increased payroll costs, which accounts for around 80% of overall costs, plus most other costs increasing. As a result, we closed the 2024-2025 financial year with a small surplus of £31,145. This compares favourably with a prior year deficit of £19,530.

As mentioned throughout this report, the ongoing high levels of hardship for so many of our clients means that high levels of demand exceeding our day-to-day capability will remain in the foreseeable future. This drives us to work hard to maintain, and ideally increase, our income so we can maintain and enhance our team resources to meet demand and deliver excellent service to our clients.

We continue to work closely with commissioners, partners and funders to professionally support the communities we serve in what remain challenging times for those experiencing high levels of hardship, low incomes and high costs.

Investment policy

Similar to many charities of our size, CAML currently has no investment funds. Surplus funds when not immediately required are placed in deposit accounts with CAF Bank and Metro Bank.

Reserves policy

In setting the reserves policy, the Board of Trustees considers the need to provide against any future income shortfall, fulfil working capital requirements and allow funds to be available to support service developments. Throughout 2024-2025 we continued to meet the reserves policy of three months operational expenditure in unrestricted funds. As at 31 March 2025, unrestricted funds were £464,365 (see note 17 for further details).

Principal risks and uncertainties

The Trustees regularly review risks and as part of internal control, look ahead at potential risks in the future that could undermine the sustainability of the charity, including:

• Ability to recruit and retain skilled staff. Experienced Supervisors and Managers in Citizens Advice are highly trained and skilled people, and it remains a challenge to recruit and afford sufficient resources in London, where living costs are high.

• Securing longer term and viable funding remains a challenge, albeit that there is currently some stability of two year funding. Key funds from local authorities are under long term pressure due to budget deficits and typically do not cover cost increases over their contract terms, adding additional pressure on resourcing to meet demands. On a positive note, there are two funding opportunities for the 2026-2027 financial year that would be over longer funding periods of three and five years.

• Continued levels of hardship that our clients are facing produces a sustained demand for our services in excess of our resources on a day-to-day basis. Delays in providing support can lead to client dissatisfaction. Resourcing pressures can make it more difficult to accept new funding opportunities when delivery is expected at relatively short notice.

To address and mitigate these risks, ongoing actions and initiatives include:

• Raising our profile as a local charity at community level, to assist recruitment of new staff and to attract and retain a much larger number of active volunteers. Specialist volunteers have supported CAML in 2025 to help promote this initiative.

• Consolidating and diversifying our income streams, minimising the reliance on local authority funding, including engaging with the business community to assist income generation and encouraging volunteers.

• Reviewing our service delivery model to consider how we better handle high levels of demand, including by improved process and use of technology. The CEO and IT lead Senior Manager are working with London Citizens Advice to develop AI to improve efficiency and assist workload pressures for our team. We have also extended our opening hours to help manage continuous high levels of demand for our services.

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

PLANS FOR 2025-2026 AND FUTURE PERIODS

Governance and Management

We continue to strengthen the Board through identifying gaps in skills/knowledge/experience and successfully recruiting to these roles. During the year we recruited three new Trustees - Catherine Anderson, Elaine Okyere and Rory Weal. With Raj Patel stepping down as Treasurer and a Trustee in 2025-2026, Catherine Anderson became CAML Treasurer. Looking ahead and with Carole Mercer and Kirsty Gray Roberts also stepping down in 2025-2026, we have appointed three new Trustees in 2025-2026: Carl McCloskey, Christina Dodds and Nikhil Vijh.

Strengthening Access

A key aspect of meeting rising demand for our services and support in an environment of lower resourcing (financial and otherwise) is to ensure we have the correct balance of service provision between telephone, online, face-to-face and outreach, and between information, assessments (triage), generalist advice and specialist advice.

This is an ongoing process as patterns of demand can change and a successful service must be flexible in order to respond appropriately.

We continue to have important conversations with our core advice funders, the London Boroughs of Merton and Lambeth. Both to ensure that our respective directions of travel are closely aligned and also to influence their future priorities for funding advice services through our expertise.

SUSTAINABILITY, FINANCIAL VIABILITY AND RISKS

Political, financial and societal uncertainties externally make it never more important to ensure the charity is properly resourced with a strong business plan and a highly professional operational leadership team. This is even more important as Local Authorities and other funders are under increasing and unavoidable pressure to cut their budgets.

We are therefore working to secure appropriate funding for existing service contracts and our Chief Executive is tasked with securing new funding opportunities within the approved three-year budget. Within this, being able to demonstrate the impact of our work and communicate this effectively to key stakeholders is of primary importance.

As a charity with a turnover in excess of £1 million, CAML is excluded from bidding for many charitable funds. Those that we are eligible to bid for are subject to increased competition. The three-year business plan and budget provides a framework for the charity to sustainably grow and develop. During the 2024-2025 financial year and the current financial year, additional income was achieved broadly in line with the business plan and budget. There remains a number of future risks of key funding support changing and the Board of Trustees may well need to make major strategic decisions if core local authority funding does not meet full cost recovery going forward. In addition to local authority funding, the increased competition for grants from other funders and potential strategic changes in their priorities also makes future income a challenge.

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution and organisational structure

The charity is constituted as a company limited by guarantee.

Recruitment and Appointment of New Trustees

The Directors of the company are also Charity Trustees for the purposes of charity law and under the company's articles are known as the Board of Trustees. The Board of Trustees seeks to ensure that the needs of the users of the charity's services are appropriately reflected through the diversity of the members of the Trustee body. As part of our succession planning, we continue to advertise and recruit new Trustees. Prospective trustees are interviewed by trustee recruitment panel. Successful applicants are then invited to meet the Chief Executive and observe a Board meeting.

Organisational Structure and decision making

The Board of Trustees meets quarterly and is responsible for the strategic direction and policies of the charity. There are also two sub-committees of the Board covering Finance and People & Operations. These have delegated powers, terms of reference and meet quarterly and as required. The Chief Executive, assisted by three senior managers, is responsible for charity operations including services, contracts and projects within the strategy and policies set by the Board.

Induction and Training of Trustees

New Trustees have a welcome induction including information, time spent with services, team meetings and opportunities to familiarise themselves with the charity's activities and policies. All Trustees are also encouraged to join team meetings and team training. Trustees also undertake relevant training from national Citizens Advice and other organisations.

Key Management Remuneration

Remuneration levels for key management personnel are reviewed annually by the Board. Trustees consider benchmarks against comparable roles for other similar charities when determining salary and other employment benefits.

Related Organisations

The Charity is a member of Citizens Advice, a national network of over 230 local charities that deliver advice across the country, overseen by a national framework provided by Citizens Advice.

We have excellent relationships with the London Borough of Lambeth and the London Borough of Merton who provide us with core funding for the open public advice services through contracts/grants to support our vital work with their communities.

We continue to work in partnership with other organisations including Wimbledon Guild, Wimbledon Foundation, Greater London Authority (GLA), South West London & St Georges NHS Mental Health Trust, Citizens Advice Hounslow, Wandsworth and Hammersmith & Fulham and collaboratively work with other charities and organisations relevant to our clients' needs.

On behalf of our clients and everyone involved with Citizens Advice Merton and Lambeth, we would like to extend our gratitude for the support and co-operation we receive from all our funders, partners and other organisations.

Statement of Internal Control

Risk Management

The Trustees, following review and update of the risk register, remain satisfied that there are measures in place to mitigate those risks. The Trustees always undertake appropriate due diligence and seek appropriate professional advice when taking major decisions.

The charity's objectives, its internal organisation and the environment in which it operates change over time and internal controls are in place to help manage and control risk appropriately. As not all risks can be fully mitigated, an approach to risk appetite supports decisions about appropriate risk management actions.

The following risk categories are included in the risk register: - Governance

• Service Delivery

• Finance and Funding

• People Management

Our Business Continuity Plan details how we will handle significant risks that could cause disruption to our normal services and which have the potential for significant impact on our clients and the overall operation of the charity.

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

02914384 (England and Wales)

Registered Charity number 1046018

Registered office

7 Crown Parade Morden London SM4 5DA

Principal address

326 London Road Mitcham London CR4 3ND

Trustees

Ms E Coulter Chair Mr R Patel Treasurer (resigned 11/9/25) Ms K Gray (resigned 11/9/25) Ms C Mercer (resigned 20/3/25) Ms L Whiting Mr C Southorn Ms E Okyere (appointed 17/6/24) Ms C J Anderson (appointed 17/6/24) Mr R Weal (appointed 17/6/24) Ms C Dodds (appointed 11/9/25) N Vijh (appointed 11/9/25) Mr C Mccloskey (appointed 19/6/25) Mr J S Gosal (resigned 22/7/24) Mr S Graham (resigned 22/7/24) Mr A Ma

Chief Executive and Company Secretary

Simon Shimmens

Senior Management

Simon is supported by Karen Brunger (Deputy CEO), Bill Petty (Head of Adviceline, Information & Facilities) and Denitsa Ivanova (Head of Projects & Quality).

Auditors

Hartley Fowler LLP Statutory Auditors Chartered Accountants 4th Floor Tuition House 27-37 St George's Road Wimbledon London SW19 4EU

Legal Advisors Muckles LLP Time Central 32 Gallowgate Newcastle upon Tyne NE1 4BF

Bankers

Metro Bank Plc CAF Bank Ltd 75 Piccadilly 25 Kings Hill Avenue Mayfair Kings Hill London W1J 8HU West Malling ME19 4JQ

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also the directors of Citizens Advice Merton and Lambeth Limited for the purposes of company law) are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charity SORP;

• make judgements and estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

• there is no relevant audit information of which the charitable company's auditors are unaware; and

• the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, Hartley Fowler LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 30 October 2025 and signed on its behalf by:

Ms E Coulter - Trustee

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CITIZENS ADVICE MERTON AND LAMBETH LIMITED

Opinion

We have audited the financial statements of Citizens Advice Merton and Lambeth Limited (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Report of the Trustees has been prepared in accordance with applicable legal requirements.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CITIZENS ADVICE MERTON AND LAMBETH LIMITED

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

-the nature of the industry and sector, control environment and the charities activities;

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the charitable company operates in. The key laws and regulations we considered in this context included the Charities Act 2011, UK Companies Act and tax legislation.

In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company's ability to operate or to avoid a material penalty.

As a result of performing the above, we did not identify any key matters related to the potential risk of fraud or non-compliance with laws and regulations.

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REPORT OFTHE INDEPENDENT AUDITORS TO THE MEMBERS OF crrIzENS ADVICE MERTON AND LAMBETH LIMrrED Our Pro￿dureS to respond to risks Identified included the following: revlewing the flnancol statement disclosures and testing to supporknng documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements; nquirlng of management concerning actual and potential IItKJation and claims; -performing analytical procedures to identify any unusual or unexpected ￿latIOnshIpS that may Indicate risks of materral misstatement due to fraud; -reviewlng mlnutes of meetings of those charged wlth governan￿, reviewing Intemal reports, and -in addresslng the risk of fraud through management overrlde of controls, testing the appropriateness of Journal entries and other adjustments, assesslng whether the judgements made In making accounting estimates are Indicatlve of a potential blas and evaluating the business rationale for any significant transactions that are unusual or outslde the normal course of business. We also communicated relevant identlfied laws and regulations and potential fraud rlsks to all engagement team members and remained alert to any indlcation of fraud or non-c0mp1lan￿ wlth laws and regulations throughout the audlt. A fvrther descripticm of our responslblllties for the audlt of the finandal statements Is located on the Financial Reporting Councll's webslte at www.frc.org.uklaudltorsresponsibllities. Thls description forms part of our Report of the Independent Auditors. Use of our report This report is made solely to the charltable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stste to the charitable company's members those matters we are required to state to them in an audltors, report and for no other purpose. To the fullest extent permltted by law, we do not accept or assume re5ponsibillty to anyone other than the charltable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Jonathan As ewF for and on behalf o Statutory Auditors Chartered Accountsnts 4th Floor Tuition House 27-37 st George's Road Wlmbledon London SW19 4EU enior Statut ry Auditor) artley Fowler LLP 4 November 2025 -17-

CITIZENS ADVICE MERTON AND LAMBETH LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2025

Notes INCOME FROM Donations and gifts in kind 3 Charitable activities 5 Merton Advice,Adviceline & Information Services Lambeth Advice,Adviceline & Information Services Lambeth Children's Centre Londoners (GLA) Merton Cost of Living Advice Immigration Lambeth Council Tax Summons Service Merton Disability Advice Other Services and Projects Lambeth Cost of Living Advice Investment income 4 Other income Total EXPENDITURE ON Raising funds 6 Charitable activities 7 Merton Advice,Adviceline & Information Services Lambeth Advice,Adviceline & Information Services Lambeth Children's Centre Londoners (GLA) Merton Cost of Living Advice Immigration Lambeth Council Tax Summons Service Merton Disability Advice Other Services and Projects Lambeth Cost of Living Advice Total NET INCOME/(EXPENDITURE) Transfers between funds 17 Other recognised gains/(losses) Actuarial gains/(losses) on defined benefit schemes Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted funds £ 42,282 431,208 286,771 80,000 - - - - 25,000 61,317 56,666 4,019 12,110 999,373 4,181 368,327 343,854 72,241 - - - - 26,089 81,191 40,691 936,574 62,799 (53) (1,077) 61,669 402,696 464,365	Restricted funds £ 35,000 45,000 22,500 - 88,042 75,000 48,234 - - 68,014 - - - 381,790 - 105,603 - - 86,427 105,604 49,592 - - 65,141 - 412,367 (30,577) 53 - (30,524) 28,928 (1,596)	2025 Total funds £ 77,282 476,208 309,271 80,000 88,042 75,000 48,234 - 25,000 129,331 56,666 4,019 12,110 1,381,163 4,181 473,930 343,854 72,241 86,427 105,604 49,592 - 26,089 146,332 40,691 1,348,941 32,222 - (1,077) 31,145 431,624 462,769	2024 Total funds £ 77,503 476,068 293,000 84,000 91,125 75,000 41,750 29,930 25,000 42,341 18,889 3,356 21,572 1,279,534 4,785 496,456 375,907 73,156 91,807 70,360 44,902 26,814 16,879 86,260 12,645 1,299,971 (20,437) - 907 (19,530) 451,154 431,624

The notes form part of these financial statements

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED STATEMENT OF FINANCIAL POSITION 31 MARCH 2025

Notes CURRENT ASSETS Debtors 14 Cash at bank	2025 £ 15,101 551,281	2024 £ 40,552 557,815
CREDITORS Amounts falling due within one year 15	566,382 (101,741)	598,367 (165,948)
NET CURRENT ASSETS	464,641	432,419
TOTAL ASSETS LESS CURRENT LIABILITIES PENSION LIABILITY 18	464,641 (1,872)	432,419 (795)
NET ASSETS	462,769	431,624
FUNDS 17 Unrestricted funds Restricted funds	464,365 (1,596)	402,696 28,928
TOTAL FUNDS	462,769	431,624

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 30 October 2025 and were signed on its behalf by:

Ms E Coulter - Trustee

The notes form part of these financial statements

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025

Notes Cash flows from operating activities Cash generated from operations 1 Net cash (used in)/provided by operating activities Cash flows from investing activities Interest received Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	2025 £ (10,553) (10,553) 4,019 4,019 (6,534) 557,815 551,281	2024 £ 102,379 102,379 3,356 3,356 105,735 452,080 557,815

The notes form part of these financial statements

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES 2025 2024 £ £ Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) 32,222 (20,437) Adjustments for: Interest received (4,019) (3,356) Decrease in debtors 25,451 2,470 (Decrease)/increase in creditors (64,207) 123,702
Net cash (used in)/provided by operations (10,553) 102,379

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/24 £ Net cash Cash at bank 557,815	At 1/4/24 £ Net cash Cash at bank 557,815	Cash flow £ (6,534)	At 31/3/25 £ 551,281	At 31/3/25 £ 551,281
	557,815	(6,534)		551,281
Total	557,815	(6,534)		551,281

3. MAJOR NON-CASH TRANSACTIONS Donated facilities

In accordance with the Charities SORP FRS 102 the charitable company has included in income the notional rent of £41,540 (2024 £41,540) for occupying serviced accommodation in Morden and Mitcham.

The valuation of the notional rent was provided by the London Borough of Merton. The notional rent expenditure charge is included within support costs.

Donated advertising

During the year the charity received £8,100 (2024 £4,700) Google Ad Grant in in-kind Google Ads advertising.

No amount was recognised in income and expenditure in the current year as the amount was not material.

The notes form part of these financial statements

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1. GENERAL INFORMATION AND LEGAL STATUS

The charitable company is a private company incorporated and domiciled in England and Wales. The address of its registered office is 7 Crown Parade, Crown Lane, Morden, Surrey SM4 5DA. The registered number of the company is 02914384. The registered number of the charity is 1046018.

The financial information presented is for the year ended 31 March 2025 and 31 March 2024. The financial information is presented in sterling which is also the charitable company's functional currency. Monetary amounts are rounded to the nearest pound.

The charitable company has no share capital. Every member of the charitable company undertakes to contribute to the assets of the charitable company in the event of the company being wound up while they are a member, or within one year after they cease to be a member, for payments of the debts and liabilities contracted before they cease to be a member and of the costs, charges and expenses of winding up and for the adjustment of the rights of the contributories among themselves, such amount as may be required not exceeding £1.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of the accounts on a going concern basis

The financial statements have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves, the financial position, future plans and the expected level of income and expenditure for 12 months from authorising these financial statements.There are no material uncertainties about the charity's ability to continue as a going concern.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

• Defined benefit pension scheme. Actuarial assumptions used in the calculation of the defined benefit pension liability.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income in respect of services provided is recognised when, and to the extent that, performance occurs and is measured at the fair value of the consideration receivable. The main source of income for the charity is contracts for services and grants with the London Borough of Merton and the London Borough of Lambeth.

Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable.

Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Income from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to the consideration by its performance. Grant income relating to a later period is therefore deferred to that period and treated as deferred income in the balance sheet.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

2. ACCOUNTING POLICIES - continued

Governance costs

These are the costs associated with the governance arrangements of the charity. These include audit costs, the cost of legal advice for trustees and costs associated with trustee meetings and preparing statutory accounts. Included within governance costs are any costs associated with the strategic as opposed to day-to-day management of the charity's activities.

Allocation and apportionment of costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity's activities. These support costs have been allocated to the activities undertaken by the charity on the basis of the usage of those costs by the activities.

Tangible fixed assets

Tangible fixed assets are depreciated at the following rates:

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Where project funding has been used for the purchase of tangible fixed assets they are depreciated over the lifetime of the project or as above, whichever is the shorter.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Defined benefit pension scheme

The company participates into the The Pension Trust Retirement Solution scheme - The Growth Plan, a multi-employer scheme which provides benefits to some 1,300 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Donated facilities

In accordance with the Charities SORP FRS 102 the charitable company has included in income the notional rent for occupying serviced accommodation in Morden and Mitcham. The valuation of the notional rents was provided by the London Borough of Merton.

Donated advertising

In accordance with the Charities SORP FRS 102 the charitable company has included in income the in-kind estimate of Google Ads advertising. The corresponding expense is recognised in the statement of financial activities within communication and research support costs.

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

2. ACCOUNTING POLICIES - continued

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Debtors

Debtors are recognised at the settlement amount due. Prepayments are valued at the invoice amount prepaid.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement value.

Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Leasing commitments

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the statement of financial activities on a straight-line basis over the lifetime of the lease.

Voluntary help

A certain amount of time is expended on the charitable company's activities which is donated free of charge. In accordance with Charities SORP (FRS 102), volunteer time is not recognised. Details of volunteer support and services are provided in the trustees' annual report and the notes to the accounts.

3. DONATIONS AND GIFTS IN KIND

4.

Gifts in kind Donations Included in donations is a restricted donation of £35,000 (2024: £35,000). INVESTMENT INCOME Deposit account interest	2025 £ 41,540 35,742 77,282 2025 £ 4,019	2024 £ 41,540 35,963 77,503 2024 £ 3,356

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

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5. INCOME FROM CHARITABLE ACTIVITIES
Income from grants and contracts:
2025 2024
£ £
Income from Generalist advice:
Unrestricted
London Borough of Merton - Generalist advice services 431,207 431,069
London Borough of Lambeth - Generalist advice services 286,771 285,500
717,978 716,568
Income from other projects:
Unrestricted
London Borough of Lambeth - Children's Centre 80,000 84,000
London Borough of Merton - Disability Advice 25,000 25,000
Wimbledon Guild (other services and projects) 23,250 21,925
Lambeth Council Tax Summons Service - 29,930
Lambeth Cost of Living Advice 56,666 18,889
-
Mental Health NHS (other services and projects) 38,067
222,983 179,744
Restricted
Londoners (GLA) 88,042 91,125
London Borough of Merton - Cost of Living Advice 75,000 75,000
London Borough of Merton - Merton Debt Advisor 45,000 45,000
Trust for London - Immigration 48,234 41,750
The Walcot Foundation 22,500 7,500
AFA - Advice First Aid (other services and projects) 46,583 16,666
The Wimbledon Foundation (other services and projects) 18,750 3,750
-
UKPN (other services and projects) 2,681
346,790 280,791
Total income from other projects 569,773 460,635
Summary of total income:
Unrestricted Income - Generalist advice 717,978 716,568
Unrestricted Income - other projects 222,983 179,744
Unrestricted Income - gift in kind - donated facilities (note 3) 41,540 41,540
Unrestricted Income - donations (note 3) 742 963
Unrestricted Income - investment and other 16,130 24,928
Total unrestricted income 999,373 963,743
Restricted income - donations (note 3) 35,000 35,000
Restricted income - other projects 346,790 280,791
Total restricted income 381,790 315,791
Total Income - Statement of Financial Activities 1,381,163 1,279,534
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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

6. RAISING FUNDS

Raising donations and legacies

Fundraising expenditure 7. CHARITABLE ACTIVITIES COSTS Merton Advice,Adviceline & Information Services Lambeth Advice,Adviceline & Information Services Lambeth Children's Centre Londoners (GLA) Merton Cost of Living Advice Immigration Merton Disability Advice Other Services and Projects Lambeth Cost of Living Advice Summary of total expenditure Charitable activities costs (above) Fundraising expenditure (note 6) Total Expenditure - Statement of Financial Activities	Direct Costs £ 364,268 299,534 62,334 81,052 79,876 49,085 22,381 98,535 34,992 1,092,057	Direct Costs £ 364,268 299,534 62,334 81,052 79,876 49,085 22,381 98,535 34,992 1,092,057	2025 £ 4,181 Support costs (see note 8) £ 109,662 44,320 9,907 5,375 25,728 507 3,708 47,797 5,699 252,703		2024 £ 4,785 Totals £ 473,930 343,854 72,241 86,427 105,604 49,592 26,089 146,332 40,691 1,344,760
		2025 £ 1,303,220 4,181 1,307,401			2024 £ 1,295,186 4,785 1,299,971

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

8. SUPPORT COSTS

Service support costs Finance £ £ Merton Advice,Adviceline & Information Services 99,546 978 Lambeth Advice,Adviceline & Information Services 37,739 636 Lambeth Children's Centre 8,435 142 Londoners (GLA) 4,577 77 Merton Cost of Living Advice 21,907 369 Immigration 432 7 Merton Disability Advice 3,158 53 Other Services and Projects 44,356 333 Lambeth Cost of Living Advice 4,852 82 225,002 2,677 Communications and Governance research costs £ £ Merton Advice,Adviceline & Information Services 2,984 4,355 Lambeth Advice,Adviceline & Information Services 1,941 2,834 Lambeth Children's Centre 434 634 Londoners (GLA) 235 344 Merton Cost of Living Advice 1,127 1,645 Immigration 22 33 Merton Disability Advice 162 237 Other Services and Projects 1,015 1,481 Lambeth Cost of Living Advice 250 364 8,170 11,927 9. NET INCOME/(EXPENDITURE) Net income/(expenditure) is stated after charging/(crediting): 2025 £ Audit fees 4,725 Other non-audit services 2,424

Human resources £ 1,799 1,170 262 142 680 13 98 612 151 4,927 Totals £ 109,662 44,320 9,907 5,375 25,728 507 3,708 47,797 5,699 252,703 2024 £ 4,500 2,400

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2025 nor for the year ended 31 March 2024.

Trustees' expenses

During the year no trustees were reimbursed expenses (2024 £nil).

11. STAFF COSTS

Salaries and wages Social security costs Pension costs	2025 £ 963,756 84,532 33,906 1,082,194	2024 £ 943,362 80,132 33,722 1,057,216

The average monthly number of employees during the year was as follows:

Senior Management Team Service/Team Managers Service Teams	2025 4 5 30 39	2024 4 5 31 40

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,001 - £70,000 £70,001 - £80,000	2025 - 1 1	2024 1 - 1

The key management personnel of the charitable company are the senior management team, which includes:

(i) Chief Executive Officer

(ii) Head of Advice Services (iii) Head of Adviceline, Information and Facilities

(iv) Head of Projects and Quality

The key management personnel received benefits during the year of £216,776 (2024: £203,497).

Volunteers

The CAML service volunteer team was 24 at 31 March 2025 (2024: 27).

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

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12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted Total
funds funds funds
£ £ £
INCOME FROM
Donations and gifts in kind 42,503 35,000 77,503
Charitable activities
Merton Advice,Adviceline & Information Services 431,068 45,000 476,068
Lambeth Advice,Adviceline & Information Services 285,500 7,500 293,000
Lambeth Children's Centre 84,000 - 84,000
-
Londoners (GLA) 91,125 91,125
-
Merton Cost of Living Advice 75,000 75,000
-
Immigration 41,750 41,750
Lambeth Council Tax Summons Service 29,930 - 29,930
-
Merton Disability Advice 25,000 25,000
Other Services and Projects 21,925 20,416 42,341
-
Lambeth Cost of Living Advice 18,889 18,889
Investment income 3,356 - 3,356
Other income 21,572 - 21,572
Total 963,743 315,791 1,279,534
EXPENDITURE ON
-
Raising funds 4,785 4,785
Charitable activities
Merton Advice,Adviceline & Information Services 389,212 107,244 496,456
-
Lambeth Advice,Adviceline & Information Services 375,907 375,907
Lambeth Children's Centre 73,156 - 73,156
-
Londoners (GLA) 91,807 91,807
-
Merton Cost of Living Advice 70,360 70,360
-
Immigration 44,902 44,902
Lambeth Council Tax Summons Service 26,814 - 26,814
-
Merton Disability Advice 16,879 16,879
Other Services and Projects 25,933 60,327 86,260
-
Lambeth Cost of Living Advice 12,645 12,645
Total 925,331 374,640 1,299,971
NET INCOME/(EXPENDITURE) 38,412 (58,849) (20,437)
Other recognised gains/(losses)
Actuarial gains on defined benefit schemes 907 - 907
Net movement in funds 39,319 (58,849) (19,530)
RECONCILIATION OF FUNDS
Total funds brought forward 363,377 87,777 451,154
TOTAL FUNDS CARRIED FORWARD 402,696 28,928 431,624
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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

13. TANGIBLE FIXED ASSETS

14. 15.	COST At 1 April 2024 and 31 March 2025 DEPRECIATION At 1 April 2024 and 31 March 2025 NET BOOK VALUE At 31 March 2025 At 31 March 2024 DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Other debtors Accrued income Prepayments CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Social security and other taxes Other creditors Deferred income Accrued expenses		2025 £ 4,167 75 2,681 8,178 15,101 2025 £ 9,960 18,843 20,677 36,061 16,200 101,741		Fixtures and fittings £ 103,631 103,631 - - 2024 £ 20,000 517 12,041 7,994 40,552 2024 £ 5,347 18,686 6,504 128,811 6,600 165,948
			2025		2024
			£		£
	Deferred Income
	Balance brought forward		128,811		-
	Amounts released to incoming resources		(128,811)		-
	Amounts deferred in the year		36,061		128,811
	Balance carried forward		36,061		128,811

Deferred income comprises income received during the year which relates to the next financial year. Deferred income includes restricted deferred income of £6,616 (2024 restricted deferred income £62,700).

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

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16. ANALYSIS OF NET ASSETS BETWEEN FUNDS
2025 2024
Unrestricted Restricted Total Total
funds funds funds funds
£ £ £ £
Current assets 561,362 5,020 566,382 598,367
Current liabilities (95,125) (6,616) (101,741) (165,948)
-
Pension liability (1,872) (1,872) (795)
464,365 (1,596) 462,769 431,624
Comparatives for net assets between funds Unrestricted Restricted 2024
funds funds Total funds
£ £ £
Current assets 506,739 91,628 598,367
Current liabilities (103,248) (62,700) (165,948)
-
Pension liability (795) (795)
402,696 28,928 431,624
17. MOVEMENT IN FUNDS
Net Transfers
movement between At
At 1/4/24 in funds funds 31/3/25
£ £ £ £
Unrestricted funds
General Fund 403,491 62,799 (53) 466,237
Pension reserve (795) (1,077) - (1,872)
402,696 61,722 (53) 464,365
Restricted funds
Trust for London (238) (1,358) - (1,596)
Lambeth Living Well (7) - 7 -
London Borough of Merton - Merton Debt
Adviser 3,105 (3,121) 16 -
Londoners (GLA) (1,643) 1,629 14 -
London Borough of Merton - Cost of Living 30,593 (30,604) 11 -
AFA (Advice First Aid) Community Advice 2,311 (2,316) 5 -
The Wimbledon Foundation (5,193) 5,193 - -
28,928 (30,577) 53 (1,596)
TOTAL FUNDS 431,624 31,145 - 462,769
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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

17. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds General Fund Pension reserve Restricted funds The Walcot Foundation Restricted Donation Trust for London London Borough of Merton - Merton Debt Adviser Londoners (GLA) London Borough of Merton - Cost of Living AFA (Advice First Aid) Community Advice The Wimbledon Foundation UKPN TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General Fund Pension reserve Restricted funds The Walcot Foundation Restricted Donation Trust for London Lambeth Living Well London Borough of Merton - Merton Debt Adviser Londoners (GLA) London Borough of Merton - Cost of Living AFA (Advice First Aid) Community Advice The Wimbledon Foundation TOTAL FUNDS	Incoming resources £ 999,373 - 999,373 22,500 35,000 48,234 45,000 88,042 75,000 46,583 18,750 2,681 381,790 1,381,163	Resources expended £ (936,574) - (936,574) (22,500) (35,000) (49,592) (48,121) (86,413) (105,604) (48,899) (13,557) (2,681) (412,367) (1,348,941) At 1/4/23 £ 365,079 (1,702) 363,377 18,675 1,037 2,936 37,025 3,121 (960) 25,943 - - 87,777 451,154	Gains and losses £ - (1,077) (1,077) - - - - - - - - - - (1,077) Net movement in funds £ 38,412 907 39,319 (18,675) (1,037) (3,174) (37,032) (16) (683) 4,650 2,311 (5,193) (58,849) (19,530)	Movement in funds £ 62,799 (1,077) 61,722 - - (1,358) (3,121) 1,629 (30,604) (2,316) 5,193 - (30,577) 31,145 At 31/3/24 £ 403,491 (795) 402,696 - - (238) (7) 3,105 (1,643) 30,593 2,311 (5,193) 28,928 431,624

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

17. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds General Fund Pension reserve Restricted funds The Walcot Foundation Restricted Donation Trust for London Lambeth Living Well London Borough of Merton - Merton Debt Adviser Londoners (GLA) London Borough of Merton - Cost of Living AFA (Advice First Aid) Community Advice The Wimbledon Foundation TOTAL FUNDS	Incoming resources £ 963,743 - 963,743 7,500 35,000 41,750 - 45,000 91,125 75,000 16,666 3,750 315,791 1,279,534	Resources expended £ (925,331) - (925,331) (26,175) (36,037) (44,924) (37,032) (45,016) (91,808) (70,350) (14,355) (8,943) (374,640) (1,299,971)	Gains and losses £ - 907 907 - - - - - - - - - - 907	Movement in funds £ 38,412 907 39,319 (18,675) (1,037) (3,174) (37,032) (16) (683) 4,650 2,311 (5,193) (58,849) (19,530)

Unrestricted Funds

The Pension reserve is a designated reserve set aside to cover the liability for the obligation on the defined benefit scheme.

Restricted Funds

1) The Walcot Foundation

This grant supports the full employment costs of our Lambeth Advice Supervisor.

2) Restricted Donation

We are extremely grateful to a major donor who is supporting the costs of a service manager role (Head of Quality and Projects) a priority for the charity to support our team and clients.

3) Trust For London

This two-year grant supports the full employment costs of our Immigration Adviser.

4) Lambeth Living Well

CAML advisers working in local community outreach venues across Lambeth - including Lambeth Living Well Bus and West Norwood Community Shop - focusing on priority areas of advice need.

5) London Borough of Merton - Merton Debt Adviser

Supports a dedicated debt adviser to support Merton residents.

6) Londoners (GLA)

For the delivery of cost of living crisis prevention advice and specialist casework.

7) London Borough of Merton - Cost of Living Advice

For the delivery of advice to Merton residents affected by the cost of living crisis.

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

17. MOVEMENT IN FUNDS - continued

8) AFA (Advice First Aid) Community Advice

Supports a full-time adviser accepting referrals from community partners under the Cost of Living Crisis Prevention Advice Project, and the development of Advice First Aid.

9) The Wimbledon Foundation

Supports face-to-face advice and advice work in Merton.

18. EMPLOYEE BENEFIT OBLIGATIONS

The company participates in the scheme, a multi-employer scheme which provides benefits to some 521 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2023. This valuation showed assets of £514.9m, liabilities of £531.0m and a deficit of £16.1m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions - whole scheme

From 1 April 2025 to 31 March 2028: £2,100,000 per annum (payable monthly).

Unless a concession has been agreed with the Trustee the term to 31 March 2028 applies.

Note that the scheme's previous valuation was carried out with an effective date of 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present value of provision - Citizens Advice Merton and Lambeth

Present value of provision	31.3.2025 £1,872	31.3.2024 £795	31.3.2023 £1,702

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

18. EMPLOYEE BENEFIT OBLIGATIONS - continued

Reconciliation of opening and closing provisions

==> picture [478 x 292] intentionally omitted <==

----- Start of picture text -----
31.3.2025 31.3.2024
£ £
Provision at start of period 795 1,702
Unwinding of the discount factor (interest expense) 21 65
Deficit contribution paid (811) (973)
Remeasurements - impact of any change in assumptions 12 1
Remeasurements - amendments to the contribution schedule 1,855 -
Provision at end of period 1,872 795
Income and expenditure impact
31.3.2025 31.3.2024
£ £
Interest expense 65 65
Remeasurements - impact of any change in assumptions 1 1
Remeasurements - amendments to the contribution schedule 1855 -
Assumptions
31.3.2025 31.3.2024 31.3.2023
Rate of discount 4.84% 5.31% 5.52%
----- End of picture text -----

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

The following schedule details the deficit contributions agreed between the company and the scheme at each year end period:

Deficit Contributions Schedule

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----- Start of picture text -----
||||| |---|---|---|---| |Year ending|31.3.2025|31.3.2024|31.3.2023| |£|£|£| |Year 1|668|811|973| |Year 2|668|-|811| |Year 3|668|-|

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The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.

It is these contributions that have been used to derive the company's balance sheet liability.

Defined contribution scheme

Included in other creditors is the pension liability of £5,259 (2024 £6,127) due to The Pension Trust. This balance represents the liability for the month of March 2025.

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CITIZENS ADVICE MERTON AND LAMBETH LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025

19. CONTINGENT LIABILITIES

Debt on withdrawal from the multi-employer defined benefit pension scheme (The Pension Trust Growth Plan)

As of 30 September 2024, the estimated cost of withdrawal from the multi-employer defined pension scheme has been calculated to be £16,711. The estimated debt is calculated on the solvency - or 'buy-out' - basis. This is the Scheme Actuary's estimate of the pricing basis used to secure pension liabilities with an insurance company in full at 30 September 2024. A Provision has been made for £15,028 which is included in other creditors.

Employment Tribunal

There is a historical employment tribunal claim which remains outstanding. The Employment Appeal Tribunal (EAT) decided in favour of CAML and dismissed the Claimant's appeal in December 2024. In July 2025, the Court of Appeal refused to grant to the Claimant the permission for further appeal against the December 2024 decision. The matter is now expected to be referred back to the Employment Tribunal which will deal with the remaining issues in 2026. As at the reporting date, there remains substantive uncertainties as to the outcome of the case, and no provision can be reliably estimated.

20. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2025.

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