**Working Families: Our Impact Annual Report & Accounts 2021-2022**
## **Contents**
## **Our Impact**
A Message from our Chair and CEO ..........................................Page 4 Empowering working parents and carers .................................. Page 6 Driving change ...................................... Page 14 Supporting employers ..........................Page 17 Thank you to our funders ....................Page 21
## **Our Annual Report & Accounts**
Annual accounts ...................................Page 22 Independent auditor’s report to the members of Working Families .........Page 28 Statement of financial activities ................................Page 34 Balance sheet .........................................Page 35 Cash flow .................................................Page 36 Notes to the financial statements ............................Page 37
**This document forms the Trustees’ Annual Report & the Audited Accounts for the financial year 2021 – 2022.**
## **Our purpose and impact in 2021 - 2022: a message from our Chair & CEO**
For parents and carers, the past year has been as challenging as the last. As the pandemic raged on, our work continued to be essential for many working families. As we all adjusted to the ‘new normal’, with remote and hybrid working becoming embedded, we began to see that the emerging landscape of flexible working was not one that was benefitting all.
We are especially proud this year that we have driven forward our collaboration work, with the establishment of our Parents and Advisory Panel, our Academic Advisory Board and the re-convening of our Families and Work Group. These provide a mechanism by which we can ensure the views of parents and carers are informing our policy work and evolving our services, as well as co-ordinating with others to strengthen our voice and campaign effectively.
It’s no surprise that our legal advisers continued to be inundated with COVID-related queries; for example, how to access flexible working in light of changing guidance and managing work amidst pandemic-related school absences. But we were also facing an increasing number of queries with a benefits dimension and queries concerning the challenges of finding and funding childcare.
Our work with employers continues to prosper, with many using the Working Families Benchmark to measure and improve their practices, and many more attending thought-provoking roundtables and other virtual events. And the good news is that we are continuing to reach more and more working parents and carers through our National Work Life Week campaign and work with employer members, making real progress in bringing flexible and family-friendly working to the fore.
COVID pulled the rug from beneath many working families, undermining financial security and leaving the most vulnerable at risk of hardship. The number of parents and carers needing advice around in-work benefits has increased dramatically since before the pandemic. Childcare too is now undeniably a major issue for families who are trying to manage ‘the juggle’ but finding it increasingly hard to do so. Not only has our fantastic Legal Advice Service been able to keep pace with demand in these extraordinary times, but they have received recognition from the Law Society with their 2021 ‘In-House Team of the Year’ award.
One year in, we are making good progress in meeting the objectives of our new strategy. Where we have room for improvement, we have laid the foundations for success next year. As a team we are also growing and thriving, working collaboratively to remove the barriers that parents and carers face in the workplace.
Even in the current picture of unequal access to flexible working and the cost-of-living crisis there is still reason for hope. The pandemic exposed the fault lines in our current system of work and has provided sound evidence for making flexible working the norm. As we move beyond the pandemic, we can utilise our uniquely integrative approach of empowering parents and carers, supporting employers, and driving policy change to harness the
While some headlines may claim that flexible working has become the norm, cost-of-living crisis there is still reason for hope. The pandemic exposed the / it is important to remember that true flexibility is not just remote or hybrid fault lines in our current system of work and has provided sound evidence \ working. Whilst remote working is a proven success story, enabling millions for making flexible working the norm. As we move beyond the pandemic, / to improve their work life balance, we must be mindful not to shut out we can utilise our uniquely integrative approach of empowering parents :\— ; millions more from enjoying the same benefit purely because of the industry and carers, supporting employers, and driving policy change to harness the ONS 7 N N / or role they are in. There is clearly an appetite for flexible working: of those momentum and make sure flexible working can be enjoyed by everyone. parents and carers who don’t work flexibly, ¾ want to. Action is needed / to redress the imbalance of access to flexibility inclined towards certain { Ne ! industries and roles, exposed and exacerbated by the pandemic. ; **Helen Humphreys Jane van Zyl** \ Whilst we wait for the government to deliver on their expressed commitment ! **Chair, CEO,** ~ 7 to making more jobs flexible, the seeds of change have sprouted elsewhere. ~ = | Progressive employers have demonstrated there is a determination to find **Working Families Working Families** | solutions that work for both organisation and employee. As our Benchmark | Top 30 Employers and Best Practice Award winners prove, designing flexible jobs is good for business, too.
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## **Empowering working parents and carers**
## **1.1 million**
Over the year, over 1.1 million working parents and carers accessed legal advice through our website.
## **Taking the long view**
As COVID continued to cause massive turmoil for working parents and carers during 2021-2022, we gained valuable insight—through gathering information and stories—into the fallout of the pandemic. Slowly a picture began to emerge of how parents and carers were coping with such a seismic event, and how flexible working is evolving. As the dust began to settle, we put our efforts into understanding and improving our interactions with parents and carers both on and offline. This helped to inform where our future work should be focused so that we can empower parents and carers to exercise their rights at work.
## **Rising to the challenge**
As the financial year began, the UK was still in lockdown. A year after restrictions were first put in place, parents and carers were still carrying the can, trying to reconcile caring responsibilities, often home-schooling, with meeting the demands of work in the most demanding of circumstances. Like the nation’s parents and carers, our Legal Advice Service rose to the challenge to meet the sustained need for advice throughout this period. There were over a million visits to our online advice pages, reaching around 1 in 13 working parents in the UK. This marks an increase of 45% from 2018-2019, highlighting just how vital our service is to parents and carers in such arduous circumstances.
## **Unequal access to flex**
Access to flexible working transformed the experience of many parents and carers during the nationwide closure of schools and childcare settings. Our #FlexTheUK – Building Back Better report highlighted that 61% of those parents who had access to flexible working saw benefits for their family life, including more quality time with their children. For 43% of parents and carers, the pandemic jumpstarted flexible working that hadn’t been available before. But the figures also tell a story of inequality: of those who previously hadn’t worked flexibly, over half of middle-class parents had started worked flexibly during the pandemic compared to less than a third of working-class parents. This is not a great surprise, since knowledge-based roles, predominantly undertaken by middle-class parents and carers, were more easily able to shapeshift from being office-based to remote.
Research for the 2022 Working Families Index, which surveyed 2,806 parents and carers at the end of 2021, echoed these stark differences in the accessibility of flexible working, revealing inequality along industry, socioeconomic, and gender lines. The research evidences a divide between the flex ‘haves and have nots’, with women, lower earners and location-based industries faring worst in accessing flexible working. Figures from the Legal Advice Service corroborate this picture of inequality, the need for support being skewed towards specific demographics.
## **2,3000**
Our legal advice service gave personalised advice to over 2,300 people.
## **94%**
94% of parents and carers who used our e-mail advice service intended to act on the advice they were given.
~~|~~ _“Often as an employee, faced with employment issues and potential_
_dispute, you feel powerless. Your service gave me the tools to_ |I _understand what I was entitled to and how to resolve the issue with the_ | I I I _minimum amount of conflict and stress. Thank you so much.”_
## _**Legal Advice**_
## _**Service user**_
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## **Case Notes: Flexible Working**
Sara* contacted Working Families for advice when she was facing what felt like a hopeless situation. She | had reduced her hours on her return to work from ||| maternity leave, but three months later her son had | **Families up against it financially** | The message from parents and carers is resoundingly clear: financially, things been diagnosed with epilepsy. Due to his medication || are getting worse. Proving to be a persistent and serious concern for many | requiring skilled administration, he could only be left | families, the research we conducted for the 2022 Working Families Index || focused on the cost of living. Three in five parents reported that it is becoming with Sara or the nursery. Sara made another request || financially harder to raise a family, a rise from 45% in 2019, and representing to change her hours to accommodate his needs whilst | an upward trend year on year. COVID has unequivocally made a bad situation | her mother was trained to administer the medication, | worse, negatively impacting 61% of families, compounding existing inequality. || Unsurprisingly it was the most vulnerable that were the hardest hit: young but was refused due to it being the second request || families, larger families, single parents, and those caring for an adult. The cost| within a year. | of-living crisis has already begun to bite at the heels of those families with no **83%** || financial room to manoeuvre and is only set to worsen. 83% of advice enquiries | We talked Sara through how to get the most out of her | The Legal Advice Service has seen a significant rise in parents and carers over the pandemic were | from women. || upcoming flexible working request meeting and how needing advice that relates to in-work benefits, accounting for 42% of all enquiries, which pre-pandemic was just 15%. We have been able to meet the | to go about making an informal request for flexible | increased demand with a dedicated benefits adviser and are reviewing our working. We explained the possible outcomes of this helpline income thresholds to accommodate the increasing numbers of families | | Pd needing support. meeting so that Sara was clued up about her next |7 But with a considerable proportion of parents and carers bracing themselves | steps, such as an appeal, grievance, or tribunal, as || for financial crisis in the coming year, the situation for many cannot be resolved 4 well as the other options available to her, such as by accessing existing entitlements alone. The dire situation necessitates a l co-ordinated approach, and so our work with the London Child Poverty Alliance l parental leave and time off for dependents. ] and other partners in this space has been seeking broader solutions, such as |! | With support from us, Sara continued to negotiate | the rise of Universal Credit in line with inflation and asking employers to assist **61%** with childcare deposits. with her employer, who reconsidered their original 61% of advice enquiries **\** over the pandemic were \l decision and offered a temporary move to a more from people on low » junior role but at her current salary for a period 8 incomes. N ] ] \ \ | N weeks, with the option to review if her mother was still \ ] ] ‘“ “\ not trained by that time. After an incredibly difficult \ ' , = Se \ time, Sara could now relax and focus on providing the - ~ ~—_—| | care her son needed. || / 7 ‘\ \ l | i] ! ~~rs~~ ( 1 \ / ~~|~~ **8**
83% of advice enquiries over the pandemic were from women.
**61%** 61% of advice enquiries over the pandemic were
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## **Case Notes:**
## **Specialist Universal Credit Advice**
## **Ongoing struggles with childcare**
Starved of sufficient government support, many childcare providers did not survive the challenges of the pandemic, and so accessing quality, affordable, convenient childcare is increasingly the preserve of the few rather than the many. For the parents and carers using our helpline, childcare is a standout concern, underscoring just how broken the system is in the UK. Helpline trends from 2021-2022 have shown that too many parents—especially mothers—are still struggling to work due to shortages of or disruptions in childcare. Compounding this are the accounts we have heard of employers illegally refusing to consider flexible working requests. Our research from the Working Families Index also shows that prohibitive costs are locking many parents out of accessing formal childcare.
**1/3** A third of the benefit enquiries we received were related to support for childcare.
There is a very real risk of parents feeling forced to give up work that has become incompatible with their caring responsibilities. Our legal advisers have been able to alleviate the stress of parents and carers struggling with childcare by using their expert knowledge to find solutions that address individual concerns.
Working Families has sought to address the urgent childcare situation through calling on the Government to invest in the early years sector and encouraging employers to offer financial assistance with childcare deposits. We have also collaborated with campaigning organisations that have a focus on childcare, such as Pregnant then Screwed. Joining forces on social media, we have been able to connect with parents and carers needing support on range of issues—including childcare—by offering regular advice surgeries on Instagram Live.
**12,000+** The Working Families flexible working request letter template was downloaded over 12,000
times.
_“The service was informative and supportive. I am extremely grateful for the_
Ellen* had recently left her partner due to domestic violence when she contacted us for help. She has four children; the fourth child was conceived non-consensually. When she had put in a claim for Universal Credit she had explained that she was a victim of domestic abuse but wasn’t informed about the exception to the 2-child-limit for children conceived nonconsensually. Since learning of this exception, Ellen asked for a mandatory reconsideration but had been refused. She didn’t know what to do next.
We advised Ellen that the next step would be to appeal the decision. We advised what paperwork she needed and the evidence to include, talked her through what to expect from the process and the next steps. The guidance states that for cases involving an exception to the 2-child-limit for non-consensual conception, an ‘any-time revision’ applies, which means the element should have been included from the start of the claim, so we made sure that Ellen was aware of her entitlement.
After following our advice, Ellen’s appeal was successful, without having to attend a tribunal. She received approximately £4,500 in backdated Universal Credit and an additional £237 per month going forward.
_charity’s existence. I highly recommend charitable donors support Working Families as, for people like me, it can be a life-changing mental and financial lifeline. Thank you so much.”_
## _**Legal Advice Service User**_
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## **150**
Working Families had 150 active pro bono legal volunteers in 2021-2022.
## **Award-winning advice**
In October 2021 the Law Society named Working Families’ Legal Advice Service the ‘In-House Team of the Year’, in recognition of the team’s dedication and professionalism throughout an extraordinarily difficult period. The work is made possible by our supportive pro bono law firms, solicitor volunteers and funders, without whom the service could not make the same difference.
_“It is a privilege to support Working Families in their endeavours to provide prospective and current parents and carers with advice on their employment rights, particularly when so many of the beneficiaries of Working Families’ service are disadvantaged by their socioeconomical or other factors and would otherwise have nowhere to turn to for such high-quality legal advice. Their service is a lifeline for so many and our team feel very lucky to help in a small way.”_
_**Laura Hyne, Associate, Reed Smith**_
## **Case Notes: Childcare and Indirect Discrimination**
Tonia* contacted us because she was in a desperately difficult situation. Her husband was away on a posting with the military, and she needed to reduce her hours at work so she could manage caring for her son, who has autism. Due to his needs, he can’t attend wraparound childcare or be collected from school by anyone but his parents.
Our advice team guided Tonia through making a flexible working request, which was refused. Tonia didn’t know which road to take so we advised her of the options available and guided her through the appeal and grievance process, indicating indirect sexual discrimination on the basis that imposing a work pattern puts a woman at disadvantage due to women being generally more responsible for childcare.
Tonia was delighted to hear from her employer that the appeal and grievance had been upheld, and she was put on paid leave whilst solutions were put in place to support her return. Tonia could now look forward to a working pattern that would work better for her family and enable her to provide the necessary care for her child.
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## **300+**
Over 300 parents and carers responded to our open call for evidence for the government consultation on flexible
working.
## **Driving Change**
## **A catalyst for change**
Thrust into working flexibly for the first time during the pandemic, sceptics quickly learned that flexible working is a feasible option in many more roles than ever thought possible. During this unique period, Working Families has been driving forward to create opportunities for more collaboration and co-ordinated voices to effect long lasting change. Harnessing these favourable conditions requires ensuring flexible working remains on the agenda through policy work, but also leveraging the power of the collective voice of working parents and carers. With the creation of Working Families’ Parents and Carers Advisory Panel and Academic Advisory Board, and the re-assembling of the Families and Work Group, Working Families made enormous progress in developing an informed, unified voice advocating for working parents and carers in 2021-2022.
## **Shining a spotlight on parents and carers**
The perspectives of parents and carers are our guiding force, and as such it was crucial to have a formal method to obtain their valued experiences and insights. The establishment of the Parents and Carers Advisory Panel shines a light on the experiences of working parents and gives a platform for those stories to feed into policies that benefit all. In 2021-2022 we were able to draw on their opinions and life experience to inform our policy positions for the promised Employment Bill, yet to be brought to Parliament. In addition, the panel has received training about speaking on behalf of working parents in the media.
The insights of the members of the Parents and Carers Advisory Panel have been crucial to our policy work and our research. In helping to shape policy, the panel contributed to our response for the government consultation on flexible working, which has the potential to shift the dial on inequality in the labour market. They also looked at findings of our academic collaboration with King’s College—a report entitled Working parents, flexibility and job quality: What are the trade-offs?—to inform our thinking on related policy recommendations. The panel’s views have also proved invaluable in developing our services; for example, being consulted on incorporating a virtual adviser within the online advice pages. This new tool will enable parents and carers to find the resources they need quickly and easily, helping them to tackle workplace injustice and make requests for flexible working.
## **Using our voice**
Working Families has also contributed our own voice to driving change for working people with caring responsibilities, cementing our position as an authority in the field. We have honoured invitations to speak at select committees and All-Party Parliamentary Groups and continued our participation on a number of government advisory boards – the Flexible Working Taskforce and the Pregnancy and Maternity Discrimination Advisory Board – through which we have directly fed into government policy development and guidance. As well as being consulted on projects to help parents and carers balance caring responsibilities, we have made constructive recommendations to address some of the most pressing issues of the times; e.g. in co-drafting the London Child Poverty Alliance Manifesto.
We know that our voice is more powerful when we join forces across our sector, so we have been working closely with aligned campaigns, such as Flex for All and the Alliance for Maternity Rights, to make the loudest case possible on the issues that matter to us all.
## **Working together for a common purpose**
As a core value of Working Families, collaboration is at the centre of our work. In 2021-2022, our collaboration with academics and other organisations in the family and work space reached new heights. The role of the newly established Academic Advisory Board is to share researchled strategic insights on where best to focus efforts to achieve change for working families. The Advisory Board’s work has also focused on enhancing our own research, including the first Working Families Index, to strengthen the evidence base for campaigns across our work-family network.
Prompted by the much-anticipated Employment Bill, the Families and Work Group was reconvened, bringing together charities, unions, and think tanks to share intelligence and send a coherent message to government. Although the bill has somewhat fallen to the political wayside, and therefore doesn’t have same potential as a lever for change as it once did, the Families and Work Group remains an important nucleus of policy development and coordination of campaigns.
## **333**
333 pieces of media coverage featured the work of Working Families
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## **Supporting Employers**
## **An appetite for flex**
_“I would like to thank you for your ongoing support with delivering our agenda for labour market reform and look forward to further engagement.”_
_**Paul Scully MP,**_
_**Former Minister**_
## **Foundations for change**
Some of the successes of the past year have helped set the scene for change to gather future momentum. Our intervention in an Employment Appeal Tribunal helped lead to a victory for a working mother of three children, whose employer tried to demand she move to frequently changing shift patterns, which were impossible to manage alongside childcare. The Tribunal’s decision established as fact that the burden of caring for children falls more heavily on women, a huge step forward for women’s rights in the workplace. And our briefing on flexible working for Tulip Siddiq MP’s Ten Minute Rule Bill, where she cited a case study from our Legal Advice Service, received cross-party support in its first reading and is currently awaiting a second reading.
## **Understanding our own impact**
We stand a much better chance of furthering our progress when we understand how our impact is felt and have made great strides in making this happen in the past year. Improving data collection methods for the Legal Advice Service has enabled better analysis of helpline trends and the segmentation of queries, as well as taking a deeper dive into the regional picture, so that we can focus our future work and speak with greater authority on the situation for parents and carers across the UK.
As the pandemic grinded on through 2021-2022, employers continued to grapple with the shifting restrictions and financial challenges that came with it. Flexible working practices became more ingrained, shifting perceptions on the feasibility of flexible working, and making a full return to traditional ways of working less likely. For the majority of parents and carers, employers are seen as key to a future of flexible working: parents and carers surveyed for our #FlexTheUK campaign were overwhelmingly supportive (84%) of employers using their own initiative to create more flexible jobs. Through our work with employers, we know that the desire for better flexible practices is not one-sided—more employers are seeing the benefits of flexible working.
**162** We supported 162
\ employer members to / create flexible, familyfriendly workplaces.
## **Helping employers reach their potential**
As an organisation flying the flag for family-friendly workplaces for over 40 years, Working Families has been the preferred choice for a growing number of employers who have become members to benefit from our expertise. At such a turbulent time, our longstanding work in the field perfectly positioned us to help employers navigate the complexities of the pandemic and work towards sustainable flexibility.
Due to ongoing restrictions, we continued our programme of virtual events, delivering 15 webinars and roundtable events over the year. The online format, with the ability to watch post-event, ensured a broader reach, benefiting far more people than face-to-face events. The events were a valuable resource, giving professionals insights into innovative workplace policies as well as an opportunity to share ideas and best practice.
## **1 million**
The work we did with
employers in 2021-22 reached over 1 million
employees across the UK.
Issues covered in our online events were wide-ranging, including workplace fertility support, best practice in recruitment, and creative solutions for flexible working. The events specifically for those running employee support networks provided a valuable space for mutual support and learning, crucially important for volunteer staff who are supporting others.
_“We have had our new carers policy approved and really appreciate your help in shaping it. One person wrote to me to say that ‘it is so well written_
_and oozes empathy and care’. That is exactly what we were hoping to_ _**for Small Business,**_ j ~~/~~ fj _achieve and not end up with another dull HR-style document.”_ _**Consumers, and**_ ] , ( 1 7 ‘\ | ] _**Labour Markets**_ \ aw, \ | _**Working Families Employer Member**_ \ ! ‘wf \ \ 1 ~~a 1 /~~ \ **16**
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## **Case Study: Dentsu UK**
~~|~~ ‘\\ **Benchmarking success** ~~|~~ Dentsu UK is committed to supporting its employees to achieve their |x ~~|~~ A takeaway for all organisations in the wake of the pandemic is | Se best both at work and at home, and so creating a workplace that enables = @e ee | the advantage of being agile: having practices in place that allow an | them to thrive irrespective of location or work pattern is of paramount organisation to be responsive puts it in a stronger position and increases its | importance. Participating in the Working Families Benchmark allowed | competitiveness in the face of attracting and retaining talent. The Working || Families Benchmark, our comprehensive tool which measures all aspects of | the organisation to see what best-in-class policies look like and pinpoint flexible and family-friendly practices, enabled organisations to evaluate their | areas for improvement. From the innovative solutions highlighted in | practices post-pandemic, giving a focus on how to improve engagement, || strengthen their proposition, and future-proof against future crises. the Benchmark, Dentsu UK was able to narrow down what worked for || Although the 2021 Benchmark showed there is still work to be done to | them, such as day-to-day flexibility and the ‘10 days in 9’ working pattern. improve career progression for those working part-time, it also highlighted | The Benchmark also facilitated networking that has led to new ways of | \ as some positive outcomes of the pandemic. Specifically, it found that line I | YJ managers have become more output-orientated, understanding that hours working, including the introduction of training for all managers to support | | o7Um™ worked are not a measure of productivity. Recommendations that came out parents and carers in their team, which ensures that all employees have a | 7 . of the Benchmark included the importance of management alongside robust || policy, and the need for jobs to be designed and advertised as flexible. consistent and positive experience. || 4 N **Extending our reach** The organisation’s most recent success has been creating a policy that ] Our work with employers has significant reach, supporting and helping a | provides an inclusive and supportive environment to help employees | ! | sizeable portion of the UK’s working population. Whilst the practical advice ! affected by baby loss, which will make a meaningful difference to many ! **1,875** and support provided by our employer team has a direct impact on their |!\ 1,875 professionals / employees, we have been extending the effectiveness of our work through employees. !\/ registered for our events collaboration. Notably, our partnership with the Department for Business, Sarah Painter, Vice President of Customer Experience at Merkle (a Dentsu \ online in 2021-22. / Energy and Industrial Strategy’s Flexible Working Taskforce to shape the | ‘ 7 Acas guidance on hybrid working will help a wider audience of employers to company), said:
Our work with employers has significant reach, supporting and helping a | sizeable portion of the UK’s working population. Whilst the practical advice and support provided by our employer team has a direct impact on their / employees, we have been extending the effectiveness of our work through collaboration. Notably, our partnership with the Department for Business, Energy and Industrial Strategy’s Flexible Working Taskforce to shape the Acas guidance on hybrid working will help a wider audience of employers to harness the benefits of the hybrid model.
## **Helping our members succeed**
| “In 2021, the Working Families Benchmark helped us make real change | within Dentsu UK. The feedback helped us put together a business case | || for a new policy on baby loss, offering two weeks’ full pay after a baby loss, | | regardless of gender and situation, no questions asked. | || | The Benchmark has given us goals for the future. This year we’ve turned | | our attention to carers leave and have just launched a new carer’s policy support parents and carers. | | that allows for two weeks’ full pay to support our carers during times they || || really need that flexibility. We’re also working on a premature baby policy || and fertility policy we hope to launch later this year.”
Through some refining of the Working Families Benchmark analysis, we
found a promising trend: the longer our employer members work with us, the better they perform on the Benchmark. This sends a reassuring message to the employers we work with that our input is effective in helping create and sustain family-friendly workplaces. The findings also signal that the Benchmark is a worthwhile tool to integrate practices and cultures that
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## **Case Study: MACE**
~~|~~ MACE is renowned globally as an expert in construction, with 3,420 staff | || in the UK. Their tagline ‘MACE is its people’ underscores the company’s || } desire to ensure their policies are competitive, providing outstanding 1 **Thank you to** | | support to parents and carers across the organisation.
## **Thank you to our funders**
| Entering the Working Families Benchmark was an opportunity for MACE to | | review their current policies. The in-depth feedback highlighted strengths | Our achievements in 2021-2022 would not have been possible without the 7 1 | support of the following trusts and foundations: yi] across policy and integration of flexible working within the culture, as well | | as actions that could be taken to strengthen areas where gaps had been | **• 29th May 1961 Charitable Trust** / identified. As an organisation committed to creating opportunities for all, **• Anonymous Funder** || **• Barclays** MACE set to work to enhance their current maternity leave policy, creating |1 **• Drapers’ Charitable Fund** ! | a positive draw for prospective talent, and supporting women thrive **• Eleanor Rathbone Charitable Trust** | throughout their career. **• Farrer & Co Charitable Trust**
**• Farrer & Co Charitable Trust** \ | Jessica Williams, Global Inclusion, Diversity and Equity Lead at MACE, **• Gowling WLG (UK) Charitable Trust** |1 **• John Ellerman Foundation** \ said: | **• Law Society Charity** || **• London Legal Support Trust** \ | “MACE signed up to Working Families to have a critical friend of our NN oa7ms || family friendly and flexible working policies. Our initial task of entering |1 **• • Network for Social ChangeSisters Trust** ‘sWw ~ “ \ | the Benchmark gave us a real understanding of areas for improvement, **• Souter Charitable Trust** and this feedback was one aspect which enabled our 26 weeks of paid **• Trust for London** j maternity leave to become a day-one right. We hope progressive and We would also like to thank our dedicated Changemakers and fundraisers ‘ ~o[¢] | decisive actions such as these will showcase us as an employer of | for their generosity and unwavering support – sharing our passion for =p a»
We would also like to thank our dedicated Changemakers and fundraisers for their generosity and unwavering support – sharing our passion for helping parents and carers thrive at work and at home. Every single donation made to Working Families has enabled us to meet the increasing demand for our services during these challenging times. Together, our united community continues to ensure Working Families can empower parents and carers with our free Legal Advice Service, a lifeline for many. We can’t thank you enough for the incredible impact this makes.
|1 choice, committed to supporting families and carers in their careers with donation made to Working Families has enabled us to meet the increasing || |1 us. Proven to be invaluable in action planning, we will be entering the demand for our services during these challenging times. Together, our united community continues to ensure Working Families can empower parents and | Benchmark again this year, to help us to evolve and ensure our offering is | carers with our free Legal Advice Service, a lifeline for many. We can’t thank || in line with other employers.” you enough for the incredible impact this makes. ||
**With your help, we can reach 1 in 10 UK working parents on our mission to remove the barriers that people with caring responsibilities face in the workplace. Visit workingfamilies.org.uk/support-us to learn how you can help!**
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## **Financial review and**
## **governance**
Reference and administration details of the charity, its trustees and advisors
## **Trustees**
- **Tim Oliver (retired 31 August 2021)**
- **Helen Humphreys**
- **Mary Starks**
- **Gemma Rosenblatt (retired 23 April 2021)**
- **Clare Corbett**
- **David Robson**
- **Helen Tupper**
- **Rebecca McGowan**
- **Steve Toft**
- **Paul Coulson**
- **Tessa MacArthur**
- **Amy Town (appointed 30 September 2021)**
- **Kate Shaw (appointed 23 October 2021)**
## **Officers**
- **Tim Oliver (Chair) (retired 31 August 2021)**
## **Our annual accounts**
- **Helen Humphreys (Vice Chair) (appointed as Chair 1 September 2021)**
- **Rebecca McGowan (Treasurer)**
This section contains all the information we need to legally provide each year to show what our financial activity has been over the year 2021 – 2022. We are including it alongside our impact report because we want to be as transparent as possible, and we think that all our funders, supporters and people who use our services should be able to see how we are doing.
Registered office Buzzacott LLP 130 Wood Street London EC2V 6DL Charity registration number (England and Wales) 1099808 Charity registration number (Scotland) SC045339 Company registration number 04727690
Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL
The trustees, who are directors of the company for the purposes of the Companies Act, present their report with the financial statements of Working Families (the “charity”) for the year ended 31 March 2022.
Bankers CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ
## **Public benefit**
The financial statements have been prepared in accordance with the ( ) —_ principal accounting policies set out on pages 37 to 40 and comply with The trustees confirm that they have referred to the Charity Commission’s the requirements of the Companies Act 2006, the Charity’s Memorandum general guidance on Public Benefit when reviewing and shaping the and Articles of Association, applicable laws, and Accounting and Reporting charity’s aims and objectives for the year and planning future activities. The by Charities: Statement of Recommended Practice applicable to charities charity works to ensure that its programmes are inclusive, accessible, and i \ preparing their accounts in accordance with the Financial Reporting responsive to the needs of its beneficiaries. \ Standard applicable in the United Kingdom and Republic of Ireland (FRS 7 ‘ \ 102).
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## **Financial review Results for the financial period**
A summary of the results for the period can be found on page 34 of this report and accounts. During the year, total income amounted to £958,496 (2021: £981,748). Income from grants and donations amounted to £288,125 (2021: £454,323), income from charitable activities amounted to £589,156 (2021: £470,850), and income from other trading activities amounted to £81,215 (2021: £25,500). There was no income recognised from other sources in the year (2021: £31,075 was recognised relating to the Coronavirus Job Retention Scheme).
Total expenditure for the year amounted to £965,308 (2021: £786,311). Expenditure on raising funds totalled £53,978 (2021: £44,794) and expenditure on charitable activities amounted to £911,330 (2021: £741,517). This results in a net deficit and net reduction in funds during the year of £6,812 (2021: net income and net increase of funds of £195,437).
## **Financial position**
In April 2021, with the pandemic continuing, Working Families was not expecting to end the year with an increase of £138,000 of sales from employer membership. This reflected demand from employers to support them with managing an increase in hybrid working. Demand for our legal advice service remained high, although reducing from the six-fold growth in FY20/21, with the effects of the global pandemic on working parents and carers throughout the UK. The earned income allowed us to maintain our unrestricted reserves, while also providing an annual salary increase for the staff team. As we start our new financial year in 2022, with the UK embracing different working environments and mounting inflationary pressures on working parents and carers, Working Families will continue to invest in our mission: to empower working parents and carers, to support employers and to drive positive policy change to ensure everyone benefits from flexible family-friendly working practices.
The balance sheet shows total funds of £287,762 (2021: £294,574). All funds at the year end were held in the general (unrestricted) fund (2021: £36,815 of funds held at the year end related to the charity’s restricted funds). Therefore free reserves available to meet general expenditure, are £287,762 (2021: £249,259).
## **Reserves policy**
The Trustees seek to hold reserves sufficient to ensure the financial security of the charity and our ongoing ability to meet our charitable objectives. The charity will hold minimum reserves sufficient to cover the costs of a winding up the charity and discharging our obligations to staff and creditors in full. At 31 March 2022 the Trustees assessed this minimum threshold to be £105,000, should reserves fall to less than 20% above this minimum threshold the Trustees will put in place a detailed monitoring and management plan. The charity will hold a maximum level of reserves sufficient to cover 6 months charity expenditure plus a reserve to cover the
development of future opportunities to fulfil our charitable objectives. At 31 March 2022 the Trustees assessed this maximum threshold to be £582,000, should reserves rise above this threshold the Trustees will put in place an action plan to develop opportunities to use any surplus to fulfil our charitable objective. The reserves held at 31 March 2022 of £287,762 fell within the Trustees’ agreed range.
## **Governance, structure, management, and relevant policies**
## **Recruitment, appointment, and induction of new trustees**
Working Families appoints trustees on the basis of the skills and experience they can bring to the custodianship and management of the business and its activities. All prospective trustees, who are also directors of the company, are recruited from a range of external sources and by public advertisement and are appointed or co-opted after a formal interview process. Recommendations from the interview panel are voted on at a Board meeting in accordance with our Memorandum and Articles of Association. Each new trustee is offered mentoring by an existing trustee, provided with full induction information, and offered relevant training. The trustees who served throughout the year are detailed on page 23.
## **Statement of trustees’ responsibilities**
The trustees (who are also directors of Working Families for the purposes of company law) are responsible for preparing the trustees’ report and 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 the group and of the income and expenditure of the charitable company and group for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- • observe the methods and principles in 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);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
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The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each of the trustees confirms that:
- so far as the trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and
- the trustee has taken all the steps that he/she ought to have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Risk management**
In addition to the challenges faced because of the Covid-19 pandemic and in light of inflationary pressures expected within 2022/23, the major risks to which the charity is exposed, as identified by the Trustees, have been reviewed and systems have been established to mitigate those risks. In particular, the Trustees have built into the Business Plan for Working Families to be financially sound, well governed and a best practice employer. Key steps towards this have included:
## **Committees**
The Finance and Risk Committee of the Board meets monthly to monitor financial performance and risk. The People and Governance Committee is responsible for the charity’s governance and ensuring that Working Families is a best practice employer for its size and sector, and for settling any specific disciplinary or grievance issues which may arise during the year. It meets monthly or as required. The Business Development & Fundraising Committee reviews the charity’s business development and fundraising plans to support the charity’s ability to meet its aims.
## **Fundraising policy**
The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. The charity takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charity manages its own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year, the charity received no complaints about its fundraising activities.
Approved and authorised for issue by the Board of Trustees and signed on its behalf on 12 July 2022 by:
**Rebecca McGowan, Treasurer**
**Helen Humphries, Chair**
- Tight budgetary control, including monthly meetings by the Finance and Risk Committee
- Appointment of a trustee with fundraising knowledge and experience
- Appointment of a trustee with business development experience Working Families appointed JS2 as its accountants and appointed Buzzacott LLP, as auditors in 2019 following a tender process.
## **Key management personnel**
The charity is governed by a Board of Trustees. Day to day running of the charity is delegated to the Chief Executive and Senior Leadership Team. The charity is staffed by paid employees, supported by volunteers as well as by professionals giving their time and expertise pro bono. The salary for the key management personnel – the CEO – is reviewed annually by our People & Governance Committee (a committee of our board of trustees), taking into account industry standards. This Committee makes a recommendation to the Board.
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## **Independent auditor’s report to the members of Working Families**
## **Opinion**
We have audited the financial statements of Working Families (the ‘charitable company’) for the year ended 31 March 2022 which the comprise the statement of financial activities, the balance sheet, statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (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 2022 and of the charitable company’s 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 auditor’s 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 and financial statements, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
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## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- t he information given in the trustees’ report, which is also the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ report, which is also the directors’ report for the purposes of company law, has been prepared in accordance with applicable legal requirements.
## **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 trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the charitable company 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 exemptions from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, 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.
## **Auditor’s 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 an auditor’s report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
How the audit was considered capable of detecting irregularities including fraud.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the charitable company through discussions with trustees and other management, and from our commercial knowledge and experience of the sector;
- we focused on specific laws and regulations in both the UK and overseas, which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Charities Act 2011, the Companies Act 2006, data protection legislation, anti-bribery, employment, safeguarding principles, health and safety legislation;
-
- we considered the impact of the international nature of the charitable company’s operations on its compliance with laws and regulations;
- the charitable company utilises local auditors to audit the financial information in each of countries in which it operates. We communicated our perception of material risk in respect of irregularities to the local auditors and obtained details of the work that they carried out in response to this;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and
inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.
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We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
- used data analytics to investigate the rationale behind any significant or unusual transactions.
with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable 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 state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of management and those charged with governance;
- obtaining details of work carried out by local auditors in connection with compliance with local laws and regulations;
- enquiring of management as to actual and potential litigation and claims; and
Hugh Swainson (Senior Statutory Auditor) Signed for and on behalf of Buzzacott LLP, Statutory Auditor
130 Wood Street
London
EC2V 6DL Date: 15 September 2022
- reviewing any available correspondence with HMRC and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance
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## **Statement of financial activities**
## **(incorporating an income and expenditure account)**
**For the year ended 31 March 2022**
**----- Start of picture text -----**
Year to 31 Year to 31 March
March 2022 2021
Unrestricted Restricted Total Unrestricted Restricted Total
Notes £ £ £ £ £ £
Income From:
Grants and Donations 2 117,706 170,419 288,125 74,039 380,284 454,323
Charitable Activities 3 589,156 - 589,156 470,850 - 470,850
Other trading 4 81,215 - 81,215 25,500 - 25,500
activities
Other sources - - - 31,075 - 31,075
Total income 788,077 170,419 958,496 601,464 380,284 981,748
Expenditure on:
Charitable activities 5 704,096 207,234 911,330 342,904 398,613 741,517
Cost of raising funds 53,978 - 53,978 44,794 - 44,794
Total expenditure 758,074 207,234 965,308 387,698 398,613 786,311
Net income 6 30,003 (36,815) (6,812) 213,766 (18,329) 195,437
(expenditure) and net
movement in funds
Reconciliation of funds:
Total funds brought 257,759 36,815 294,574 43,993 55,144 99,137
forward
Total funds carried 287,762 - 287,762 257,759 36,815 294,574
forward
**----- End of picture text -----**
## **Balance sheet at**
## **31 March 2022**
**----- Start of picture text -----**
2022 2021
Notes £ £
Fixed assets:
Investments 15 - 8,500
Current assets:
Debtors 12 121,722 115,662
Cash at bank and in hand 586,130 535,860
707,852 651,522
Liabilities:
Creditors: amount falling due 13 (420,090) (365,448)
within one year
Net current assets 287,762 286,074
Net assets 287,762 294,574
The funds of the charity:
Restricted income funds 17 - 36,815
Unrestricted income funds:
General funds 287,762 257,759
Total charity funds:
287,762 294,574
**----- End of picture text -----**
Approved by the trustees on 12 July 2022 and signed on their behalf by:
**Helen Humphries**
**Rebecca McGowan Treasurer**
**Chair**
Working Families Registered Charity No. 1099808 (England & Wales) and SC045339 (Scotland) Registered Company (No. 04727690).
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## **Statement of cash flows**
**For the year ended 31 March 2022**
**----- Start of picture text -----**
Note 2022 2021
£ £
Net cash provided by / (used a 41,770 299,026
in) operating activities
Net cash provided by / (used
8,500 -
in) investing activities
Change in cash and cash 50,270 299,026
equivalents at the beginning
of the year
Cash and cash equivalents 535,860 236,834
at the beginning of the year
Cash and cash equivalents b 586,130 535,860
at the end of the year
Note a
Net income / (expenditure) (6,812) 195,437
for the reporting period
(as per the statement of
financial activities)
(Increase)/decrease in (6,060) 99,532
debtors
(Decrease)/increase in 54,642 4,057
creditors
Net cash provided by / (used 41,770 299,026
in) operating activities
Note b
Analysis of cash and cash At 1st April Cash Flows (£) At 31st March 2022
equivalents. 2021 (£) (£)
Cash in hand and at bank 535,860 50,270 586,130
Total cash and cash 535,860 50,270 586,130
equivalents
**----- End of picture text -----**
## **Notes to the financial statements**
**For the year ended 31 March 2022**
## **1. Accounting policies**
## **Basis of preparation**
These financial statements have been prepared for the year to 31 March 2022. Comparative information reflects the year to 31 March 2021.
The financial statements have been prepared in accordance with 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) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The financial statements are presented in sterling and are rounded to the nearest pound.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
## **Public benefit entity**
The charitable company meets the definition of a public benefit entity under FRS 102.
## **Going concern**
The trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
## **Critical accounting estimates and areas of judgement**
Preparation of the accounts requires the trustees and senior management to make significant judgements and estimates over the allocation of overheads and governance costs between charitable expenditure categories and fundraising costs. There are no other significant estimates or judgements.
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## **Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objects of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Statutory grants which are given as contributions towards the charity’s core services are treated as unrestricted.
## **Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income received in advance of the provision of a specified service or the delivery of other performance conditions, is deferred until the criteria for income recognition are met.
Income from memberships is recognised over the period of the membership
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
## **Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure on charitable activities includes the costs of undertaken to further the purposes of the charity and their associated support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **Allocation of support costs**
Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned based on an estimate of staff time attributable to each activity.
## **Fund accounting**
Unrestricted general funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charitable company’s charitable objects.
The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aims and use of each designated fund is set out in the note to the financial statements.
## **Investments**
Investments comprise funds provided to an associated charity, Child Concern Consortium.. This investment is held at cost less impairment.
## **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash at bank and in hand**
Cash at bank and cash 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.
## **Creditors and provisions**
Creditors and provisions 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 and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
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## **Financial Instruments**
The charity 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **Pension**
The charity is part of an occupational pension scheme, which is a defined contribution scheme. The cost of contributions payable by the charity to the scheme is charged to the income and expenditure account as incurred.
## **Operating Leases**
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
## **2. Income from grants and donations**
**----- Start of picture text -----**
Unrestricted Restricted 2022 Total Unrestricted Restricted 2021 Total
£ £ £ £ £ £
Trusts and Foundations 58,200 170,419 228,619 33,298 380,284 413,582
Donations 59,506 - 59,506 40,741 - 40,741
117,706 170,419 288,125 74,039 380,284 454,323
**----- End of picture text -----**
## **3. Income from charitable activities**
**----- Start of picture text -----**
Unrestricted Restricted 2022 Total Unrestricted Restricted 2021 Total
£ £ £ £ £ £
- -
Employer membership 478,296 478,296 426,904 426,904
- -
Consultancy and Training 109,781 109,781 38,360 38,360
Other income 1,079 - 1,079 5,586 - 5,586
589,156 - 589,156 470,850 - 470,850
**----- End of picture text -----**
## **4. Income from other trading activities**
**----- Start of picture text -----**
Unrestricted Restricted 2022 Total Unrestricted Restricted 2021 Total
£ £ £ £ £ £
- -
Sponsorships 81,215 81,215 25,500 25,500
81,215 - 81,215 25,500 - 25,500
**----- End of picture text -----**
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## **5. Analysis of expenditure**
**----- Start of picture text -----**
Current Year Staff Costs Other direct costs Support costs Total 2022
£ £ £ £
Charitable activities
Services for employers 278,964 68,049 63,740 410,753
Legal advice service 246,750 29,185 62,895 338,830
Policy and research 105,590 27,064 29,093 161,747
Fundraising 42,095 2,708 9,175 53,978
Totals 673,399 127,006 164,903 965,308
-
Support costs 58,473 106,430 (164,903)
Total expenditure 731,872 233,436 - 965,308
**----- End of picture text -----**
**----- Start of picture text -----**
Prior Year Staff Costs Other direct costs Support costs Total 2021
£ £ £ £
Charitable activities
Services for employers 187,757 47,399 52,263 287,419
Legal advice service 185,334 66,881 51,589 303,804
Policy and research 112,654 6,282 31,358 150,294
Fundraising 29,072 7,630 8,092 44,794
Expenditure on charitable 514,817 128,192 143,302 786,311
activities and fundraising
-
Support costs 54,510 88,792 (143,302)
Total expenditure 569,327 216,984 - 786,311
**----- End of picture text -----**
**----- Start of picture text -----**
Support costs comprise: Total 2022 Total 2021
Staff costs 58,473 54,510
Other staff costs 5,382 3,049
Marketing and Comms 36,262 20,051
IT costs 5,358 7,142
Premises costs 1,095 3,607
Finance, office and admin costs 50,688 47,377
Governance - audit fee 7,645 7,566
Total support costs 164,903 143,302
**----- End of picture text -----**
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## **6. Net income for the year**
**----- Start of picture text -----**
This is stated after charging 2022 2021
£ £
Staff costs 731,872 569,327
-
Operating lease costs 38,487
Audit 6,800 6,566
**----- End of picture text -----**
## **7. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel**
**----- Start of picture text -----**
Staff costs were as follows: 2022 2021
£ £
Salaries and wages 653,059 503,994
Social security costs 40,426 36,683
Pension contributions 38,387 28,650
Other costs - -
731,872 569,327
**----- End of picture text -----**
One employee earned (excluding employer pension) between £60,000 and £70,000 during the year (2021: One employee earned (excluding employer pension) between £60,000 and £70,000).
The key management personnel comprise the Chief Executive. The total employee benefits including employer pension contributions and employer national insurance contributions of the key management personnel was £75,999 (2021: £71,076).
**----- Start of picture text -----**
The amounts paid to the Chief 2022 2021
Executive Officer were:
£ £
Gross salary 65,000 60,667
Employer's NIC 7,749 7,159
Employer's pension 3,250 3,250
75,999 71,076
**----- End of picture text -----**
The charity trustees were not paid or received any other benefits from employment with the charity in the year (2021: £nil).
During the year, two trustees were reimbursed £128 for costs incurred in relation to their role as trustee (2021: none)
## **8. Staff numbers**
The average number of employees (head count based on number of staff employed) during the year was as follows:
**----- Start of picture text -----**
The amounts paid to the Chief 2022 2021
Executive Officer were:
Charitable Activity 20.8 17.8
Fundraising 1.9 0.5
Support 2.8 1.2
Governance 0.1 0.1
25.6 19.6
**----- End of picture text -----**
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## **9. Related party transactions**
During the year ended 31 March 2022 a donation of £37,200 (Year ended 31 March 2021: £7,500) was received from Child Concern Consortium - an associated charity.
Aggregate donations of £2,290 (2021 : £1,185) were received from trustees and key management personnel during the year ended 31 March 2022.
There are no other related party transactions including donations from related parties which are outside the normal course of business.
## **10. Taxation**
The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The subsidiary, Working Families Trading Limited, donates all its taxable profits to Working Families, and therefore pays no corporation tax.
## **14. Creditors: amounts falling due within one**
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2022 2021
£ £
Trade creditors 39,217 14,094
Deferred income 316,203 273,134
VAT creditor 37,831 56,260
Accruals 10,770 10,266
Other creditors 16,069 11,694
420,090 365,448
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## **15. Deferred income**
## **11. Investment in Child Concern Consortium (CCC)**
Until 31 March 2022 Working Families was a member and investor in the ‘Child Concern Consortium’ (Registered charity number 1103052). The decision was made to close the consortium effective from 31 March 2022, therefore the value of the investment in the consortium has been written down to nil as at 31 March 2022. The value of the investment at 31 March 2021 was £8,500.
## **12. Debtors**
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2022 2021
£ £
Trade debtors 98,562 111,927
Prepayments 5,960 3,735
Accrued income 17,200 -
121,722 115,662
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Deferred income comprises 2022 2021
membership fees paid in advance.
£ £
Balance at the beginning of the period 273,134 284,702
Amount released to income in the (273,134) (284,702)
period
Amount deferred in the period 316,203 273,134
Balance at the end of the year/period 316,203 273,134
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## **17. Analysis of net assets between funds**
## **16. Trading subsidiary**
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In the previous year the charity had one wholly owned subsidiary which
As at 31 March 2022 Unrestricted Restricted Total funds
was incorporated in the United Kingdom; Working Families Trading
Limited, Company Registration number 02590219 (England and Wales). £ £ £
The charity owned 100% of the company’s 2 issued £1 ordinary shares. Net current assets 287,762 - 287,762
The trading subsidiary was dissolved on 23 March 2021.
Net group assets at the 287,762 - 282,762
end of the year
As at 31 March 2021 General Restricted Total funds
unrestricted
£ £ £
Fixed assets 8,500 - 8,500
Net current assets 249,259 36,815 286,074
Net assets at the end 257,759 36,815 294,574
of the year
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## **18. Movements in funds 2022**
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Restricted funds: At the start of the period Income Expenditure At the end of the period
£ £ £ £
-
Legal Advice Service 25,000 55,150 (80,150)
Trust for London 11,815 33,500 (45,315) -
- -
Policy & Research 81,769 (81,769)
Total restricted funds 36,815 170,419 (207,234) -
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Unrestricted funds:
General funds 257,759 788,077 (758,074) 287,762
- - - -
Designated funds
Total unrestricted funds 257,759 788,077 (758,074) 287,762
Total funds 294,574 958,496 (965,308) 287,762
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## **Legal Advice Service**
Grants and donation funding to provide free legal advice to parents and carers on their rights at work.
## **Trust for London**
Funding to support Working Families work across the Legal advice service and policy work.
## **Policy and Research Fund**
Funding towards the Research and Policy Manager role.
## **Movements in funds 2021**
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Restricted funds: At the start of the year Income Expenditure At the end of the year
£ £ £ £
Legal Advice Service 21,394 294,584 (290,978) 25,000
Trust for London 33,750 51,500 (73,435) 11,815
- -
Anonymous Funder 15,000 (15,000)
The Sisters Trust - 19,200 (19,200) -
Total restricted funds 55,144 380,284 (398,613) 36,815
Unrestricted funds:
General Funds 43,993 601,464 (387,698) 257,759
Total unrestricted funds 43,993 601,464 (387,698) 257,759
Total funds 99,137 981,748 (786,311) 294,574
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## **Ultimate control**
The charitable company is controlled by its trustees.
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**Working Families c/o Buzzacott LLP 130 Wood Street London EC2V 6DL**
phone **020 3833 2050** envelope **office@workingfamilies.org.uk** star **workingfamilies.org.uk**
## **@workingfamUK**
**@workingfamUK**
**WorkingFamiliesUK company/working-families**
**For more information on our work and mission, please visit**
## **workingfamilies.org.uk**
Published by Working Families © 2022 All Rights Reserved. Registered Charity No. 1099808 (England & Wales) and SC045339 (Scotland) Registered Company (No. 04727690).