Independent4",4 .
Age
Annual Report
and Accounts
2023
Annual Report and Accounts 2023 **1**
## Introduction
We can all live a financially secure, happy, connected and purposeful later life
Independent Age is the national charity focused on improving the lives of people facing financial hardship in later life.
Our Helpline and expert advisers offer free, practical support to older people without enough money to live on. Through our grants programme, we support local organisations working directly with older people across the UK.
We use the knowledge and insight gained from our support services and partnerships to highlight the issues experienced by older people in poverty and to campaign for change.
We believe no one should face financial hardship in later life.
© Independent Age 2024 Author: Independent Age Copyediting and proofreading: Louise Marsters Design: Mark Errington Photography: Leanne Benson pp9, 11, 12, 13, 15, 16, 17, 27, 35, 40; Maria Brosnan cover, pp3, 6, 7, 18, 19, 71; Colchester Streets p1; Alan Fletcher p11; Ross Parker p7; Dave Poultney p14; Lee Townsend p11
- 2 Welcome from Julia Neuberger and 36 Statement of trustees’ responsibilities Joanna Elson
37 Independent auditor’s report
- 4 Our year in numbers 6 What we achieved in 2023 8 Our strategy
## Financial statements
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6 What we achieved in 2023
41 Consolidated Statement of Financial Activities
8 Our strategy
42 Group and Charity Balance Sheets
Strategic report
43 Group and Charity Statements of Cash Flows
10 Our vision, mission and values
44 Notes to the Financial Statements
12 Goal 1: Income
14 Goal 2: Costs Legal and administrative details
16 Goal 3: Community 72 Legal and administrative details
18 Goal 4: Home
20 How we operate
21 Future plans
22 Governance structure and management
28 Managing risk
30 Financial review
Kaz and Shaz
Strategic report
Independent Auditor’s report
Financial statements
administrative details Legal and
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Cover: Mohamed
**2** Independent Age
## Welcome from Julia Neuberger and Joanna Elson
2023 saw many older people face mounting pressure from the increasing cost of living. This year we:
Our work at Independent Age has never been needed more. Around two million older people in the UK live in poverty, while another million live with precarious finances and face real financial hardship.
- provided up-to-date information and advice through our information guides, telephone groups, Helpline and specialist advisers, ensuring older people can access benefits and social tariffs they are entitled to
- grew our grants programme to support partner organisations working directly with older people in financial hardship, especially those hit hard by the cost-of-living crisis
Independent Age’s history and expertise are rooted in supporting older people facing financial hardship – it’s been a priority since our foundation. In recent years, we’ve strengthened that expertise through research and through our information and advice, campaigns and communications.
- continued our successful policy and influencing work, particularly around Pension Credit take-up.
We also continued to highlight stories of poverty in later life, through our reports _The hidden two million_ , about at-risk groups across the UK, and _Not enough to live on_ , which focused on the financial realities for older people living in Scotland. Our research into private renters, another group more likely to struggle with low income and high costs later in life, led to the launch of our _Hidden renters_ report in September.
Poverty affects people of all ages, but older people without enough money to live on are often invisible, overlooked and unheard. They face ageist assumptions about the comfort of their financial situation – when, too often, the dream of a carefree, financially secure retirement is just that. Living in financial hardship affects older people’s health, intensifies loneliness and reduces quality of life, so we can and must work to prevent and alleviate it.
In September 2023 Joanna joined us as our new Chief Executive. Joanna’s track record working with people struggling with their finances, and her commitment to financial inclusion, made her the right choice to lead our new strategy. We are also hugely indebted to Stuart Rogers, who served as interim CEO during 2022 and for most of 2023. We’re delighted to have retained him in his new role of Chief Operating Officer.
In 2022 our trustees refocused our work on supporting older people experiencing financial hardship through the prism of income, costs, community and home. We set about transforming our work, winding down some programmes and workstreams and developing new ones, to reach those older people research tells us are most likely to be living in financial hardship: women, single people, people from minoritised ethnic communities, carers, people with long-term conditions or disabilities and private renters.
Julia has provided inspirational leadership as Chair of Independent Age since 2019. She will step down at our AGM in September 2024 and we are so pleased to have appointed Richard Anderson as the next Chair from that date.
In 2023 trustees, staff and partners worked together to finalise our strategy. It gives us a clear plan to meet our ambitious goal of improving the lives of one million older people experiencing financial hardship by 2027.
Independent Age is now in a strong position to deliver our ambitious strategy over the next three years. We are immensely grateful for the support of all our funders and donors, campaigners, our diligent and capable trustees, and our dedicated staff team – without whom we couldn’t continue our life-changing work.
Baroness Neuberger, DBE Joanna Elson, CBE Chair Chief Executive
Independent Age is now in a strong position to deliver our ambitious strategy over the next three years.
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Annual Report and Accounts 2023 3
Introduction
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**4** Independent Age
Annual Report and Accounts 2023 **5**
## Our year in numbers
As we work towards meeting our ambitious goal of improving the lives of one million older people experiencing financial hardship by 2027, here are the numbers that demonstrate our progress in 2023.
Following this transition year to our new strategy, we will be reviewing our key performance indicators in 2024.
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We awarded We granted £570,000 We generated nearly
£1.5 million in grants directly to 810 4,000 significant
to 36 partners. older people. media mentions.
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682,213 people We supported 46,732 We distributed
accessed our older people to access 252,574 copies of
services. our services. our information
resources.
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Our guides and Our web pages Our advice pages factsheets were were viewed were viewed downloaded 1,011,502 times. 674,213 times. 36,389 times.
For comparison: In 2022, we awarded £2 million in grants to 50 organisations. We granted £651,000 directly to 921 older people. We generated nearly 2,000 significant media mentions. 737,191 people accessed our services. We supported 28,869 older people. We distributed 528,266 printed guides and factsheets and 15,541 digital guides and factsheets were downloaded. Our web pages were viewed 699,903 times, of which 655,522 views were of our advice pages. We answered 31,855 Helpline enquiries and had 1,191 enquiries over web chat. 41% of calls led to publications being sent out. 59% of calls were about welfare benefits. 13% of calls were about social care. We supported more than 2,000 people with specialist advice. We identified £1.49 million in unclaimed benefits. Almost 14,000 campaign actions were taken. We had more than 70 MP champions. We had more than 20,000 campaigners in our network.
We answered 20,138 17% of calls led to 37% of calls were Helpline calls and publications about welfare had 1,635 web chat being sent. benefits. enquiries. 12% of calls were We supported 2,114 We identified about social care. people with £2,132,718 in specialist advice. unclaimed benefits.
There were 22,467 We have 63 MP We had 21,199 actions to support champions. campaigners in our campaigns. our network at the end of the year. Our grants Grantees unlocked We enabled funded programme £10 million in organisations to supported at least additional benefits employ 81 new 37,000 older people for those they staff members. living in financial supported. hardship.
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Annual Report and Accounts 2023 **7**
## What we achieved in 2023
Here we reflect on some of our most significant achievements in 2023.
We also reviewed and recommissioned our Helpline, so older people who need help can always get through to someone who cares and is knowledgeable about issues that matter to them. The Helpline team is also expert at putting older people in touch with local support where it’s needed. We’ve added web chat and email as contact channels for our Helpline too, giving people more choice than just phone. And we continue to offer live interpretation services to anyone who needs them.
## National services
Providing high-quality, independent information and advice is at the heart of what Independent Age does – making sure older people are aware of their options so that they can make informed decisions about their lives.
In 2023 we supported 35,403 people through our services, and we reached 682,213 people through our information guides and website. We expanded our advice service, adding two generalist advisers who now support older people with indepth advice on issues relating to money, housing and care.
Our partnership with Nationwide has gone from strength to strength. As well as providing support to victims of scams, we’re now accepting direct referrals from Nationwide where people have been bereaved or need specialist support.
As part of our transition to supporting older people facing financial hardship, we reviewed our guides and factsheets, to make sure older people can use the information they offer to increase their income, reduce costs and live in safe and suitable housing, with the care and support they need.
We have improved our processes for working with our volunteer Readers’ Panel. We now offer more ways for members to get involved, including video and
Left Colleagues and campaigners at the Department for Work and Pensions in April 2023 to deliver our research into Pension Credit uptake.
Below Runner at the London Landmarks Half Marathon 2023.
phone calls, and we’ve developed a guide for new members about how the panel works and how they can be involved. Our volunteers are one reason we secured the PIF quality mark again this year for our public information.
Our Good to Know telephone groups developed over the year, too. We launched our first _Getting help at home_ webinar, with 29 participants who gave it an average rating of 4.25 out of 5 for quality.
## Community services
During the year we closed our community services, which connected people, places and services to reduce isolation and loneliness, and allowed us to reach marginalised groups through community events in a small number of locations. Following a review, we came to the difficult conclusion that the service, although excellent, was high-cost and not scalable, and
people to its befriending service, supported by a grant of £20,000.
that we would reach more older people in financial hardship by expanding our grants programme.
## Policy and influencing
Our befriending service, through which volunteers supported older people experiencing loneliness, with visits and telephone calls, had been winding down for some time. The service was not in line with our new focus on supporting those in financial hardship, so we accelerated the wind-down and the service was discontinued from 30 September 2023. Some older people and volunteers decided to continue their relationship informally as friends. And we partnered with Re-engage, transitioning 82 older
In 2023 our policy and influencing activity focused on gathering new evidence directly from older people in financial insecurity. We listened to the experiences of thousands of older people on a low income through surveys, one-to-one conversations and polling, and used this insight to determine the policy and systemic changes that could improve their lives. This enabled us to make recommendations to decision makers across the UK.
Left Attendees at Below Colleagues our strategy launch from Independent event, _The hidden_ Age speaking to _two million_ . MSPs about the need to tackle pensioner poverty in Scotland.
We conducted innovative research on specific issues too, and published our report _The hidden two million_ looking at the situation for groups at risk of poverty across the UK, and our _Not enough to live on_ report focusing on poverty in later life in Scotland.
We also built partnerships with other charitable organisations in England, Scotland and Wales, and received support for our policy calls from Westminster and Holyrood parliamentarians and government ministers. We gained high-profile media coverage and mobilised thousands of campaigners to support our recommendations for change.
## Grant-making
We awarded £1.5 million to 36 grant-delivery partners in England, Wales and Scotland in 2023. Including 2022 grants which continued into 2023, we supported a total of 87 partners with grants in the year.
We ran three grants programmes in 2023: cost-of-living grants, local grants and grants to strategic partners, with 27 of the 36 new grants (totalling £979,000) for the cost-of-living grants programme. In 2023 we made 32 grants to organisations in England, two to organisations in Scotland and two to organisations in Wales.
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## Our strategy
More than three million older people are living with limited financial means and experiencing inequalities which affect their quality of life, ability to make choices and their independence.
Our objective by 2027
We will have improved the lives of one million older people facing financial hardship. We will ensure older people facing financial hardship...
have sufficient are protected from have the connections live in safe, secure and income and receive unfair or avoidable and support they need suitable housing the financial support costs in their communities with the care and they’re entitled to support they need
## How we’ll do it
Work directly Use evidence and our Support organisations Work with others to with older people expert knowledge to financially through explore innovative facing financial campaign to change grants and practical ways of providing hardship to improve policies and practices support support and improving their lives the lives of older people facing financial hardship
## Who we work with and for
Charities, Donors, Families, friends, Policy and People beyond community volunteers and neighbours, and decision makers, state retirement organisations, supporters health and social media age facing financial partners, care professionals hardship, on a businesses and low income or in grant recipients areas of multiple deprivations
## Strategic report
I grow quite a bit of stuff in the garden so we do manage with food costs quite well. Stephen, Wiltshire
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Introduction
Strategic report
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Independent Auditor’s report
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Financial statements
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Annual Report and Accounts 2023 **11**
## Our vision, mission and values
2023 was a year of transition to our new strategy, for which we have an ambitious yet clear strategic objective: by 2027 we will have improved the lives of one million older people facing financial hardship.
During 2023 we developed our impact strategy, in which we detailed the activities that will improve the lives of a million people in financial hardship by 2027 and the target numbers we will reach through each of our activities. Those activities include our Helpline, advice and support offer, printed information guides, training and consultancy, e-learning, grant-making and strategic partnerships, and direct grants to individuals. An improved life means increased financial wellbeing, enabling greater choice and independence in wider areas of life.
Every day we hear from people in later life who are struggling financially. While they are resourceful, careful and resilient, and employ many tactics to make their low income work for them, life is hard. The people we engage with – through our services, grant-giving, campaigning, research and volunteering – tell us about their cripplingly high rents, the anxiety they feel when they receive their utility bills and their worries about how they will survive living on a low income.
I feel safe for the rest of my life knowing I have you there for me. Anonymous Helpline user
## Vision
We can all live a financially secure, happy, connected and purposeful later life.
## Mission
To ensure that as we grow older, we all have the opportunity to live well with dignity, choice and purpose.
## Values
Purpose-driven Compassionate Expert Collaborative Accountable Inclusive
## Our goals
Our four strategic goals are:
## Income
We will make sure older people facing financial hardship have sufficient income and receive the financial support they’re entitled to.
## Costs
We will ensure that older people facing financial hardship are protected from unfair or avoidable costs.
## Community
By working in partnership with other organisations, we will ensure older people facing financial hardship have the connections and support they need in their communities.
## Home
We will ensure that older people facing financial hardship live in safe, secure and suitable housing with the care and support they need.
Our research and analysis identified certain groups of people aged 65 and over who are at greater risk of facing financial hardship, including single people, women, people from minoritised ethnic communities, private renters, older carers, and people with long-term health conditions or disabilities.
National data proves they are not alone. Statistics released in March 2023 show that in 2021/22, 2.1 million pensioners – 18% of all pensioners – were living in poverty across the UK[1] . This number has grown over the past decade, with approximately 500,000 more pensioners in poverty now than in 2012. To make things worse, there are also 1.1 million pensioners who are financially insecure and living just above the poverty line.
Intersectionality is prominent among those facing financial hardship, with many people likely to identify with more than one of these seldom heard groups. We have tried to learn more about them and why they might be more likely to face financial hardship in later life.
People who spend any time in poverty are more likely than others to go without a filling meal every day and are more likely to live in a cold home. In our conversations with older people facing financial hardship, we hear of the difficult decisions they’re making: do they skip a meal to keep the lights on? Do they keep the heating off over winter so they can afford a taxi to their hospital appointment? The effect of monitoring every penny and constantly living on the edge is significant, both mentally and physically.
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Our research and analysis identified certain groups of people aged 65
and over who are at greater risk of facing financial hardship, including:
Single people Women People from
minoritised ethnic
communities
Private renters Older carers People with long-
term conditions
or disabilities
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Independent Auditor’s report
Financial statements
administrative details Legal and
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1 UK Government Households below average income (HBAI) statistics
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Janet
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Goal 1: Income
We will make sure older people facing financial hardship have sufficient income and receive the financial support they’re entitled to.
We will expand our income maximisation advice to support people on a low income, including those living in deprived areas and at most risk of financial hardship, such as private renters, women and single people. We will develop and provide training to third-party organisations to do the same.
In National Services, in 2023 we took 8,584 calls to our Helpline about welfare benefits. We trained more of our staff to carry out welfare benefits checks and identified £2,132,718 in unclaimed benefits that older people were missing out on. We now offer a form-filling service, with more staff able to support older people with complex benefits claims, such as for Attendance Allowance. This service fills a gap in advice provision nationally.
All our printed guides now have information relating to Scotland and Wales, reflecting the different social security legislation across the UK.
On top of direct support, our National Services branched out this year to provide free training to community organisations and professionals who work with older people. Our aim is to raise their awareness of entitlements like Pension Credit and Attendance Allowance and to be confident using our online benefits checker. So far, 558 people
have attended training and we estimate they will be able to support 15 older people each – a total of 8,370 people.
Through our Grants, we supported more than 40 projects intended to maximise income for older people in financial hardship, including helping with benefits advice and reviews and support with form-filling.
We will make our advice more accessible, with translations into different languages and audio versions, and always make sure our content represents people from different communities. We continue to offer live interpretation services to anyone who needs them through Language Line. In 2023 Greater Manchester Combined Authority produced translated versions of our Winterwise guide in partnership with us. Our other advice guides are now being translated in 2024..
We will gather evidence to explore the systemic barriers older people in financial hardship face when trying to increase their income and use these insights to shape our activity, content and communication materials.
Our Policy and Influencing research showed that many older people in poverty in Scotland didn’t know about the Scottish Welfare Fund (SWF), which provides emergency support. We called on Members of the Scottish Parliament and local authorities to do more targeted advertising focused on older people facing financial hardship. Our research was quoted in the Scottish Government’s SWF action plan, which committed to more effective promotion to older people.
We will pressure governments to increase access to and uptake of financial entitlements, including campaigning to increase Pension Credit uptake, improve benefit adequacy and call for an Older People’s Commissioner.
Through our Policy and Influencing work, we continued to try to persuade the UK Government to increase Pension Credit uptake. We spoke to journalists and politicians, submitted evidence to inquiries, and did campaign stunts and activity. We published our Local Authority Pension Credit toolkit, with examples of innovative approaches some local authorities have adopted to increase take-up. We were pleased to see the UK Government trial new ways to increase uptake, including working with data held by local councils. From January to May 2023 about 70,000 new people began receiving Pension Credit, giving them an average of £3,000 extra a year.
I’m frugal but still need to work.
We will engage government, key influencers and service providers to tackle systemic problems that prevent older people in financial hardship from maximising their income.
We contributed to the UK Government review of the State Pension, making the case that now is not the time to increase the State Pension age, given falling life expectancy, rising rates of poverty in later life and the cost-of-living crisis. There is evidence to show that increasing the State Pension age by just one year plunges more people into poverty during that time. Early in 2023 the UK Government announced it would not increase the State Pension age at present.
## Rob’s story Penzance
I drive a taxi in Cornwall and absolutely love it. I never know who I’m going to meet or where I’m going, so it keeps me on my toes.
I’ve had my State Pension for nearly a year, but I couldn’t survive on it alone. I have to work. My rent is £675 a month, council tax £104, and I have to pay for the electric. I’m frugal – I’ll batch cook and keep the lights off – and, when winter comes, I won’t use the heating.
I’m trying to save money. I’m going vegetarian, I don’t drink, but I run a car and have to get dental work done, so any extra money just goes. I never looked at prices before but now I do, because I’ve only got so much disposable income and still have debts.
My taxi licence runs out in two years’ time – when I’m nearly 70. What if I don’t get through the medical? I’ve got type 2 diabetes, enlarged prostate issues – I’m just getting older, you know? That’s my biggest fear – losing my income and then my housing.
I envy people the same age who don’t pay rent or a mortgage and have a good pension. I’ve been working since I was 18. I could see myself living in a tent, and that’s scary.
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Gwenda
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We will develop policy positions and clear asks of government, influencers and service providers that protect older people in financial hardship from unfair costs and penalties.
Our Policy and Influencing team had clear evidence that the planned increase in the Energy Price Guarantee (EPG) in April 2023 from £2,500 to £3,000 would hit older people on low incomes hard. As well as sharing our concerns in the media, we supported a campaign led by financial journalist and broadcaster Martin Lewis calling for the UK Government to postpone the planned increase. The Chancellor referenced the campaign in his Budget statement and confirmed the UK Government would no longer increase the EPG threshold.
We’ve also been campaigning alongside others for an energy social tariff which, in 2023 involved meetings with the UK Government Energy Minister, signing public joint letters, speaking at roundtables with civil servants and energy providers, and responding to public consultations on topics like the energy price cap.
Goal 2: Costs
We will ensure that older people facing financial hardship are protected from unfair or avoidable costs.
We will conduct research to understand the causes and effects of unfair and avoidable costs to inform our service development, policy priorities and focus.
Our Policy and Influencing team conducted research to draw attention to the impact of rising broadband, water, energy and Council Tax bills on older people facing financial hardship across the UK, and made recommendations to ease the burden. Our report _A constant struggle_ included insight from 1,700 older people and was supported by politicians, other charities and business.
We will provide support and advice to older people to enable them to make informed choices about how they can minimise costs and protect themselves from financial shocks.
In National Services in 2023 our Helpline answered 290 calls about money and costs. This included providing information and advice on avoiding scams and what to do if you’ve been scammed. We dealt with many enquiries from people worried about paying bills, how to switch utility provider to secure a better deal and how to access grants to help cushion the blow of financial shocks such as boiler repairs, replacement of white goods, urgent home maintenance and other costs.
Through our Grants programme we funded more than 10 organisations with projects directly aimed at supporting older people to reduce costs. These ranged from tackling funeral poverty in Essex, specialist advice on reducing energy costs in Scotland, and providing warm spaces and advice sessions in the North West.
Healthy and Active in East Kilbride was one of our grant partners in Scotland. In partnership with East Kilbride Citizens Advice, they ran a project combining expert advice with a preventative approach to support local residents facing increased costs. This included access to community larders and community growing initiatives, advice on healthy eating on a budget, peer support, and energy saving efficiencies. The organisation’s holistic approach and longer-term solutions enabled them to support over 1,400 people.
We will work with partners to share and distribute information about minimising costs and avoiding scams to reach more older people more efficiently. Our National Services Signposting+ service now offers support with using cost comparison websites to older people who are digitally excluded and, through our Good to Know groups, we ran Scams Bingo sessions working with UK Finance, as well as a standalone session on scams.
…all my bills have gone up, so my savings are gone.
## Aminah’s story Middlesbrough
I relocated to the UK 13 years ago, having been a community support worker for a UK women’s development charity in Uganda. For the past seven years, I’ve worked as a carer in Middlesborough for an older lady three nights a week. Since she died, though, I’ve been struggling to find work. I feel that’s because of my age.
Although I’m managing to pay my rent on my council house, all my bills have gone up, so my savings are gone. I’ve never missed a payment. I use a little heating, but it’s still cold and means I only eat twice a day. How is this possible? And you no longer eat what you want; you eat what’s there. Chicken and beef are so expensive, so I buy vegetables, rice and beans.
I have indefinite leave to remain in the UK but not the £600 to apply for citizenship. My passport has expired and now I can’t afford to go home. I haven’t seen most of my grandchildren in person. I keep myself happy but inside I am struggling.
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Carer’s First, Essex
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2023 was the second year of our pioneering partnership with the National Academy of Social Prescribing – to which we committed a grant of £200,000 in the year – to better understand how financial hardship may affect health outcomes and the barriers people may face to accessing services and support in their communities. We fund an older people’s specialist and two local pilot sites in Hastings and Leicester. We are developing and trialling solutions, including training social prescribers on a national scale, to understand how financial hardship may affect older people, and are holding conversations on finances.
Our local grants programme in 2023 concentrated in two key areas of the UK – Essex and Middlesbrough – and supported local organisations to address specific community issues for older people in financial hardship.
Before its closure, our Community Services, including our Reconnections service, directly supported an average of 65 people a month.
We will raise awareness of our work, volunteering opportunities and campaigns.
Our campaigns network grew to more than 21,000 people, and campaigners took more than 22,000 actions to support our campaigns and highlight our recommendations to decision makers across the UK.
Goal 3: Community
By working in partnership with other organisations, we will ensure older people facing financial hardship have the connections and support they need in their communities.
We will undertake research and determine which communities we should work in and how this supports our financial hardship focus.
Our Policy and Influencing team produced a report, _The hidden two million_ , which looked at the groups most at risk of financial hardship in later life across the UK, and secured significant media coverage to draw attention to the challenges they face and what could be done to improve their situation.
We will support older people to be connected to their community, have greater knowledge of services and have increased access to entitlements.
Through National Services we distributed 252,574 information guides – the most popular being Winterwise and Scamwise – in community locations.
In 2023 we had 223 calls to our Helpline about community services, 67 about bereavement, 417 about loneliness and isolation, and 105 about transport, the Blue Badge and mobility.
We produced a policy briefing looking at the barriers that prevent older people from minoritised communities from exiting poverty. This work received significant media coverage and allowed us to draw attention to seldom-heard groups in later life.
We published our _Not enough to live on_ report focusing on the financial reality for older people living in poverty in Scotland. This received significant media coverage and interest from Scottish Government ministers who have referenced it in meetings and initiatives.
We will collaborate on projects that foster partnerships, pool assets, build capacity and share best practice, and which support older people to be more connected to services and support. We joined forces with more than 70 organisations in England, and 30 in Scotland, to call for a Commissioner for Older People both in England and in Scotland. We worked with celebrities to make a short film supporting this recommendation, coordinated events in Westminster and Holyrood Parliaments in support of it, and included it in policy reports, briefings and consultation submissions. We ran commissioner roadshows at which we heard powerful testimony from older people who told us they feel disempowered and ignored, and how a Commissioner for Older People could change that. In September we launched our _Who wants to listen to me?_ report sharing this insight.
[Independent Age] do brilliant work supporting older people like me.
## Mohamed’s story London
I’m a physical education teacher by qualification, so I’ve always practised some kind of sport or physical activity, like going to the park for a walk. But for my 70th birthday in 2018, someone suggested running the marathon, so I said “okay”!
In 2023, I decided to run another marathon, this time for Independent Age, because the charity has helped my neighbours at our retirement community in a variety of ways. It was an easy decision choosing them as my charity for the London Marathon – they do brilliant work supporting older people like me.
I didn’t find the training difficult – I always feel motivated and excited about a challenge ahead. Since 2018, I’ve run four or five half-marathons, and I did a 10k run in 56 minutes when I was 70 – quite a feat.
I’m proud to do something for vulnerable people. It’s a privilege to help others less fortunate and I’m really impressed by how Independent Age is run. I’ve represented other charities before and they just don’t care. Independent Age is different.
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Michael
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## We will develop and expand our services to support people affected by housing issues, including private renters.
In 2023 through our National Services we started offering housing advice for the first time, filling a gap in housing advice provision for older people. Often older people will call our Helpline because they are struggling to stay independent at home. We talk through options available to them, including home care, supported living and residential care, and how to fund care and housing provision. By the end of 2023 we had answered 2,729 calls to our Helpline about care and health, and another 537 about housing and housing options. We introduced four new paying-for-care guides, which include information for Scotland, in an updated design that makes them easier to access and understand.
We will develop policy solutions that would benefit older people who live in financial hardship and have housing problems.
In the autumn the UK Government announced an increase to Local Housing Allowance so that it matches at least the lowest 30% of rents across the UK. This has been one of our key policy calls, and will benefit the more than 400,000 privately rented households with at least one person aged 65 or over in England and the almost 50,000 older private renters in Scotland. We’re expecting a Housing Bill to be introduced to the Scottish Parliament and will share older Scottish renters’ experiences to influence it.
Goal 4: Home
We will ensure that older people facing financial hardship live in safe, secure and suitable housing with the care and support they need.
We will conduct research to identify the biggest housing problems for older people in financial hardship and challenge assumptions about older people’s housing situations.
Through our Policy and Influencing work we carried out research into older renters in England and Scotland and, in autumn 2023, launched our _Hidden renters_ report about the experience of older private renters in England. We shared our recommendations with civil servants, politicians and other charities, and secured a large amount of media coverage. We have been working with housing charities including Shelter and Crisis and, in line with our recommendations, during 2023 the UK Government introduced the Renters Reform Bill, which could greatly improve the lives of renters of all ages.
We will use our insight from older people in financial hardship who live in insecure, unsafe or unsuitable housing to shape our activity, content and communication materials.
We’ve increased our capacity to provide direct housing advice to older people, including advice on housing options, moving into residential care, issues with leasehold properties and rented accommodation. We’ve reviewed all our existing housing information to focus on issues affecting people in financial hardship.
Our _Hidden renters_ report was informed and shaped by interviews with around 40 older private renters living on low income and by nationally representative polling through which thousands of renters shared their experiences and views. We secured national and local media coverage on our policy recommendations to improve life for renters. We also sourced stories from older renters and produced blogs and short films to continue to ensure these stories are seen and heard by decision makers.
When I got a Section 21, I felt lost.
## Susan’s story Romford
I’ve lived in Romford nearly all my life and been a private tenant with my landlord for 12 years. She recently said she was selling because of the mortgage payments going up. She gave me a Section 21, so I have to move out.
The rent used to be £675, but for the past couple of months she’s asked £900. We had a bit of a tiff because the flat’s not in great condition. The bathroom window is broken, it’s very draughty, the double glazing has blown, the boiler is on its last legs and one of the gas radiators has never worked.
When I got the Section 21, I felt lost – like I was running around in the dark. A housing officer at the council said, because of my age and disability – I have COPD – I qualify for sheltered accommodation, but not until I’m forced out by a bailiff. I need to look into it.
Even then, what if they offer me housing that doesn’t work for me? I have a cat and I want to stay close to my daughter – who’s got stage 4 cancer and is diabetic – and grandson. I like to be close in case she needs me for anything.
I just don’t think it’s right. I’d never planned on moving out of here anyway.
**20** Independent Age
Annual Report and Accounts 2023 **21**
## How we operate
To achieve our strategic objective – that by 2027 we will have improved the lives of one million older people facing financial hardship – we need to ensure our charity is well run, has sufficient income, and has the right skills and infrastructure.
We will manage our resources well, taking careful expenditure decisions and ensuring we get value for money
- In 2023 we decided to withdraw from our direct community services work in a few local communities. This allowed us to redirect £0.5 million into our grants programme, through which we could put money in the hands of organisations working in areas of high deprivation across England, Scotland and Wales.
- We also completed the closure of our volunteer befriending service. Although this was important work, under our new poverty remit we were no longer the right organisation to deliver it. We partnered with Re-engage, experts in this area, and were pleased that some of the long-standing pairings of volunteers and older people moved across to Re-engage for ongoing support.
We will learn from our outcomes, including developing our impact strategy and reviewing our framework for monitoring, reporting and measuring our impact
- During 2023 we focused on developing our impact strategy.
- Whilst we have not made as much progress as we would have liked with monitoring, reporting and measuring our impact this year, this will be a key focus for 2024.
We will become known as the experts on financial hardship in later life
- In 2023 we built our profile. By the end of the year, we had achieved nearly 4,000 significant media mentions.
- We delayed our brand and visual identity work so that we could fully research our renewed focus proposition with our target audiences and develop our brand model with key insights in the first quarter of 2024.
## We will increase our voluntary and commercial income to reduce our dependence on investment income
- We delayed plans to grow our voluntary income until we could be sure our strategy was the right one for the charity. As a result, both investment in income generation and the resulting fundraised income were below budget in 2023. The Board approved a new income-generating strategy at the end of the year. Key to raising voluntary income is raising the profile of Independent Age and conveying both the scale and the urgent need of older people in financial hardship through authentic and emotive storytelling. We have now created a strong case for support that will form the foundation of both our philanthropic and public fundraising approaches.
- Following extensive research and evaluation, in 2023 we launched a pilot of a commercial income proposition called Differently – a membership website providing experiences and offers to the over-55s. This did not generate the desired income at pilot stage, however, so we took the decision not to continue with the project.
We will make sure the charity has the skills it needs, is inclusive and is a great place to work and volunteer
- During the year we reshaped some aspects of the charity to ensure that our resources are being deployed where they can have the greatest impact. We carried out two restructures during 2023 and were sorry to lose colleagues in the areas of community services and befriending, where we were providing services that either didn’t fit with the new strategy or couldn’t be scaled to run cost efficiently.
- This services restructure meant reviewing our supporting functions, to make sure they are in line with the new scale of the organisation. We were also sad to lose colleagues who had given valuable service to the charity – in some cases, for many years – from those functions.
- We want Independent Age to have a strong values-based culture with equity, diversity and inclusion at its core, which we support through our training. We carry out an employee engagement survey at the end of every year. This year, following the restructures, our overall engagement score fell to 76% against our benchmark of 80% and compared with 84% the prior year.
## Future plans
This year we have evolved our focus, restructured the charity and appointed a new Chief Executive – putting us in a strong position to really press forward with our work to support a million older people facing financial hardship by 2027.
Although inflation may be falling, prices are unlikely to return to pre-crisis levels. The effect of those now-embedded higher costs is cumulative. For those on a fixed or low income, savings, once spent, cannot be replaced. And, as time goes on, highervalue purchases that have been put off – a new winter coat, a new washing machine – eventually need to be made. The cost-of-living crisis might slip from the headlines as inflation comes down, but we know that for older people in financial hardship it will remain all too present. We also know that the number of people living in financial hardship will continue to grow.
In 2024 and beyond, we will continue to provide information and advice, make grants to organisations and individuals, and carry out our policy and influencing work – and to amplify the voices of older people who are so often overlooked. At the same time, we will continue to take the steps we need to take to ensure our charity is well run, spends carefully and delivers value for money. In 2024 a key focus will be to develop how we measure and report our outcomes and impact. We have now appointed an impact specialist to lead this work on a 12-month contract.
Under our new grant-making strategy, we plan to allocate a larger amount of our expenditure to grants to organisations working directly with older people in financial hardship. We have earmarked up to £11 million for grants in 2024–26, of which we hope to commit up to £5 million in 2024.
During 2023 we also reviewed our national services, including our Helpline, looking at our ‘customer journey’ to ensure our services give users the outcomes they need. We completed this work early in 2024. We have now developed a service model which prioritises in-depth support for those who are not able to access information or support themselves, or who have no one who can do this on their behalf.
Under this new model, those who need more support than our Helpline can provide will be transferred directly to either a generalist or specialist duty adviser – with an appointment system still in place for the most complex cases, such as formfilling and challenging local authority decisions. We plan to increase capacity under this new service model.
In November 2023 the Board approved a new 10year fundraising strategy, which has building our brand at its heart. Over the next decade we plan to grow our fundraised income from around 28% to around two thirds of our total income. This will reduce our reliance on investment income and allow us to spend a portion of the reserves that currently generate so much of our income. We know that this will not be easy and that many other charities are trying to grow their income at the same time – and all against a backdrop of constrained personal finances. However, we are confident that, if we can increase awareness of our important mission and demonstrate the impact of our work, we will be able to meet these goals.
I’m very cautious with money. I’m careful to make sure I’ve got enough for food. June, Inverclyde
**22** Independent Age
Annual Report and Accounts 2023 **23**
## Governance structure and management
Under the guidance of our Chair, Baroness Julia Neuberger, DBE and our trustees, we continue to review and improve our governance in line with the Charity Governance Code, updated in 2020.
Trustees are provided with the charity’s policies and asked to sign a code of conduct on appointment.
We undertook an external review of Board effectiveness in 2023, which concluded that our governance is broadly good. There were some recommendations – including a revised committee structure, shorter more strategic board papers and improvements to trustee inductions – which we are putting into place during 2024.
## Our charitable purpose
Our charitable purpose is set out in the Royal Charter 1911 (otherwise known as our charitable objects). It is to assist and provide relief to older people in need by reason of ill health, disability, financial hardship or other disadvantage. The charity may also assist and provide relief to others in need by reason of ill health, disability, or social or financial hardship.
## Legal structure
Independent Age is the operating name of the Royal United Kingdom Beneficent Association (RUKBA) – registered as a charity by the Charity Commission for England and Wales (210729).
The charity was established in 1863 and is incorporated by Royal Charter, setting out our objects, powers and byelaws. The latest Supplementary Royal Charter came into force in August 2014. In February 2017 the charity was registered with the Office of the Scottish Charity Regulator (SC047184).
The financial regulations and procedures adopted by the charity must comply with the relevant stipulations of the Royal Charter. These cover matters such as:
- limitation on private benefits for trustees, such as paid employment with the charity
- terms of office
- arrangements for the appointment of external auditors.
Independent Age is the sole legal member of Counsel and Care for the Elderly, a charitable company limited by guarantee registered in England and Wales (charity number 203429, company number 00645708). The results of Counsel and Care for the Elderly are consolidated into these accounts. A summary of Counsel and Care for the Elderly’s results is shown in Note 21 to the Financial Statements on page 67.
Independent Age is the corporate trustee of Universal Beneficent Society (UBS), registered charity number 220978, which was merged with Independent Age in 2011.
The charity is also responsible for several other linked charities, namely the F E Cobbold Trust Fund, Backsettown Endowed Charity and the Wharton & Wittrick Fund.
The charity has a wholly owned trading subsidiary, Independent Age Enterprises Limited (IAE Ltd) (company number 04735201). The company is used to transact non-charitable activities and is registered for VAT. The results of IAE Ltd are consolidated into those of the charity.
## Our trustees
The Independent Age Board of Trustees meets regularly and is responsible for overseeing our performance and providing strategic direction.
Richard Anderson
Lucy Blythe Karen Byrne Karl Demian – to 7 November 2023 Vivienne Dews – to 11 June 2024 Guillermo Donadini Jannine Edgar – from 21 January 2023
Joan Elliott – from 20 January 2023 – Treasurer from 26 July 2023
Prof Caroline Glendinning
John Hannaford – Treasurer – to 26 July 2023 Simon Inchley – to 26 July 2023 Baroness Julia Neuberger, DBE – Chair Amit Patel
Letizia Perna – from 20 January 2023 – on sabbatical from January to July 2024
At 31 December 2023 the Board had 11 trustees. The Board met formally five times and informally once in 2023.
At the AGM in September 2024 Baroness Julia Neuberger will be stepping down as the Chair of Independent Age. Richard Anderson will be the charity’s new Chair from September 2024.
The Board recruits trustees through an open recruitment and selection process. Trustees are required to abide by our code of conduct, including the declaration of other interests and fit and proper person assurance. All trustees receive an induction pack and training, so they are aware of key policies and procedures. They meet with senior employees, including directors, soon after joining the Board. We are reviewing our induction processes in 2024 in response to recommendations from the Board effectiveness review. Charter Members elect all trustees, except the chair and treasurer, who are elected by the Board of Trustees. The Board may appoint new Charter Members at its discretion.
## Committees
The Board reviews the terms of reference of all committees and subcommittees annually. At the date of this report there were four committees and one subcommittee that have delegated authority and report to the Board. All the committees and subcommittees meet at least quarterly. In response to the Board effectiveness review, a number of changes to the Committees have been made since the year end.
## Finance and Resources Committee
During the year, the Finance and Resources Committee reviewed budgets and plans and made sure we have effective arrangements in place to safeguard and manage the charity’s resources. It also oversaw our statutory reporting, pensions, audit, People, organisational development, IT and risk management arrangements. It has one subcommittee, the Investment Subcommittee.
In 2024 the Finance and Resources Committee became a Finance, Audit and Risk Committee and oversight of People matters moved to the Governance and Nominations Committee.
## Governance and Nominations Committee
This committee reviews the structure, size and composition of the Board and its committees. It is responsible for succession planning of trustees and makes recommendations to the Board for the appointment of new trustees and the chief executive. It oversaw the Board effectiveness review in 2023. Oversight of People moved to this committee in 2024 and it has become the Governance Committee.
## Engagement Committee
The Engagement Committee is responsible for overseeing the development of Independent Age’s marketing, communications, profile-raising and supporter-engagement activities. This Committee is evolving to oversee brand and fundraising growth during 2024 and 2025, with a 12-month review about its future.
## Services and Policy Committee
The Services and Policy Committee (SPC) oversees Independent Age’s services and policy and influencing activity. The SPC provides insight and expertise in relation to developing Independent Age’s service delivery, its grant-making and its policy positions. In 2024, this committee became a Delivery and Impact Committee.
## Investment Subcommittee
The Investment Subcommittee monitors the performance of the charity’s investments and managers and makes recommendations about the investment strategy.
## Management
The Board delegates day-to-day management of the charity to the chief executive and the Senior Leadership Team (SLT). The SLT develops strategies and plans for the Board to scrutinise and approve.
The Board subsequently monitors reports on performance against targets.
Joanna Elson CBE took up the role of Chief Executive in September 2023, following an open recruitment process. Stuart Rogers was Acting Chief Executive from January 2022 to September 2023.
## Remuneration of key management
## personnel
The trustees consider that the Board of Trustees and the SLT comprise the key management personnel of the charity, in charge of directing and controlling, running and operating the charity on a day-to-day basis.
All trustees give their time freely and no trustee received remuneration in the year. Details of trustees’ expenses and related-party transactions are disclosed in Note 21 to the Financial Statements on page 67.
SLT members are remunerated in line with the charity’s pay framework, in the same way as other employees.
**24** Independent Age
Annual Report and Accounts 2023 **25**
## Governance structure and management
## Remuneration statement and pay policy
Every role at Independent Age is assigned to a level within our pay framework. The pay band for each level is determined using benchmarking data obtained from a salary survey of other charitable and voluntary-sector organisations. We will be reviewing our pay framework in 2024.
We became an accredited Living Wage Foundation employer in 2023. We make sure the salaries for more junior roles are either aligned with or above Living Wage Foundation London and UK rates.
We distinguish between roles that are London based and those roles based outside London, with separate pay bands for each.
We support the Show The Salary campaign, so all salaries are openly stated in advertisements.
We do not operate any performance-related pay and we do not have a bonus scheme. Annual pay awards are not guaranteed.
## Gender pay gap
The gender pay gap is the difference between the average (mean or median) earnings of men and women across a workforce. Although we are not legally required to report our gender pay gap, we calculate this, using the methodology laid down by government for employers with 250 or more staff.
The mean pay gap for 2023 was 14.5% and the median pay gap was 19%. We noted that:
- we had more men in senior roles and more women in junior roles
- there is some distortion resulting from historical pay rates, which predate our pay framework
- some roles that have a market supplement typically attract more male candidates.
Our gender pay gap has improved since 2022. As well as our pay framework, and our commitment to openly advertising salaries, we help promote gender equality through making flexible working the norm, paid dependants leave, enhanced maternity pay, menstruation and menopause policies, and paid pregnancy and baby loss leave. In 2023 we reviewed our recruitment processes to make sure they are inclusive and free from bias; we provided unconscious bias and gender equality training to staff and now use anonymised shortlists.
In 2024 we will be collecting equalities data and are planning to calculate our ethnicity pay gap.
## Volunteers
In 2023 our 401 Readers Panel volunteers helped review new advice guides and publications, our 30 Information Champion volunteers helped spread the word about our information and advice services in their local area, and our Lived Experience Advisory Panel volunteers helped shape and support the work of the Policy and Influencing Team including our campaigning toolkit and our campaign calling for a Commissioner for Older People and Ageing. Our Media volunteers helped us to raise awareness of the experiences of financial hardship in later life in the media, and our Campaigners helped us speak to decision makers about the issues that matter to older people.
464 people volunteered with us in other volunteering roles.
We discontinued our Community Volunteer and Telephone Befriender Volunteer roles in October 2023.
We are extremely grateful to all our volunteers for everything they do to support our work.
## Fundraising
In 2023 we generated £2.2 million in voluntary income and we invested £1.4 million in our fundraising activity. This provided an overall returnon-investment ratio of 1.55:1.
Fundraised income was below budget as our original intention had been to invest in our public fundraising during 2023, however the investment was put on hold while the trustees considered the best approach. A new brand-led fundraising strategy was agreed in November 2023, and we started testing different propositions with a Christmas campaign at the end of the year. Testing will continue during the first half of 2024, with a view to investing more heavily in 2025 depending on the results of the tests.
Our new fundraising strategy aims to grow our public fundraising, major donors, and grants and donations so that, over the ten years of the plan, our fundraised income increases from around 28% of our income to around two thirds. This will make us less reliant on income from our investments to fund our work and will enable us to spend down reserves on achieving our mission.
## Thank you
We are immensely grateful to everyone who has supported us over the past year.
- Thousands supported us through a regular monthly gift, a one-off gift or a gift in their will, including legacy donations of £0.6 million. 577 fundraisers took part in 16 events last year, including the Pensions Insurance Corporation (PIC) treasure hunt, London Landmarks Half Marathon, the Great North Run and the London Marathon, raising £77,000.
- We enjoyed the support of five official corporate partners in 2023. PIC added to their amazing donation of £1.5 million at the end of 2022 with a further £34,419, and we were supported by Nationwide (£100,208), 3i Group (£80,702) UK power Networks (£25,000) and Vodafone (£6,760). Google once again provided advertising support, this year to the value of £385,173. We are grateful to all of the businesses who supported us this year.
- We were supported by 95 trusts and foundations, including the John Laing Charitable Trust (£50,000) Rangoonwala Foundation (£40,000) and the Samuel William Farmer Trust (£10,000).
## Our approach to fundraising
Independent Age is committed to following best practice and complies with fundraising regulations. We subscribe to relevant fundraising regulatory bodies, including the Fundraising Regulator, the Lotteries Council and the Chartered Institute of Fundraising, and are registered with the Information Commissioner’s Office.
We work with several specialist partner agencies and suppliers to help us deliver our fundraising strategy. All our partner agencies adhere to their relevant regulations. These specialist partnerships are essential to raising income to fund our vital work with older people and include:
## Arthur London
Arthur London supports the strategic and creative delivery of our individual giving and legacy programmes, focusing on our brand development and marketing support.
## Woods Valldata
This agency supports the delivery of our individual giving campaigns and is our licensed external lottery manager. Woods is a member of the Chartered Institute of Fundraising and is registered with the Gambling Commission.
It’s like a breath of fresh air to get through to someone without a 40-50 minute wait and get good advice. Anonymous
**26** Independent Age
Annual Report and Accounts 2023 **27**
## Governance structure and management
## How we monitor fundraising activity
Independent Age and its agencies’ monitoring guidelines include:
- regular meetings
- monitoring performance, risk and complaints
- training
- observing and shadowing agency activity conducted on our behalf
- keeping senior management and trustees informed of performance
- regular consultation with other charities and regulatory bodies
- due diligence and data protection clauses in contracts.
## Fundraising complaints
We received three complaints from individual donors or members of the public in 2023 compared with two complaints in 2022. All three complaints have been resolved. We make sure we learn from complaints and use them to improve our fundraising practice.
Where any of our partner agencies communicate with new or existing supporters, we require them to adhere to our procedures for communicating with vulnerable supporters and/or have their own procedures in place that are consistent with our own. Our procedures require a training session with fundraisers to educate them about communicating with vulnerable people. Before working with any partner, we review their procedures and attend their fundraiser training, which includes communicating with vulnerable people.
We always respect the privacy of supporters and potential supporters. We adhere to the UK GDPR and Data Protection Act 2018. Our privacy policy is available at independentage.org/our-privacy-policy.
## Energy and carbon reporting
In 2022 we set up a Green Team of staff who wanted to support Independent Age to reduce its carbon emissions. During 2023 the team helped us to: start using more environmentally friendly cleaning products; promoted cycling to work; improved recycling and waste bin signage; monitored our printing; and started carrying out sweeps of the office to turn off unnecessary lighting. We reported on our improvements at staff meetings, and shared ideas for helping the environment with colleagues.
In 2024 we plan to reduce office waste and improve recycling, including food waste disposal.
We started measuring our carbon emissions in June 2022. Our estimated carbon emissions in 2023, calculated using an improved reporting methodology, were 37 tonnes of CO2e from energy (June-December 2022: 10 tonnes CO2e), and 72 tonnes CO2e from paper use excluding the emissions from printing and delivery. (JuneDecember 2022: 65 tonnes CO2e).
My rent was £800 a month. It increased on 1 September to £845 a month, which has to be paid weekly…so I have to find £195 every week to pay my rent. Chris, Cambridgeshire
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Phillip’s story
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My wife, Carol, and I live in a one-bedroom flat, which costs us £111 a week. That doesn’t include any of the bills: £67 every fortnight for the gas and electric, £200 every month for the council tax, the TV licence is £24, the water rates are £35, and there’s the car for Carol’s work.
She’s a cleaner and normally works 12 hours a week on the minimum wage, which is £10.42 an hour. But she’s just lost one of her two cleaning jobs, so we’re worrying. Her money was our way to pay the rent, and there’s not a lot of work around here.
Carol just turned 62. I get my State Pension, and a partial pension from when I worked at the steelworks. I’m on PIP – I’ve got epilepsy. Carol also used to claim PIP because she’s got osteoporosis, but they cancelled it this year. They said if she can operate a manual car, then she’s fit to do anything and so doesn’t qualify.
We’re really struggling financially. We’ve got no savings, my credit card is maxed out and we don’t qualify for Universal Credit because Carol’s working. Some weeks we can’t even afford to buy food – we just eat whatever’s left in the fridge or freezer. We haven’t asked our children to help us, because they’ve got their own families to worry about.
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Strategic report
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We live in retirement housing. It’s got a lift, which is good for Carol’s leg – she’s had a hip replacement. We were in a council flat before, and we put our name down to move here. But without Carol’s second job, we’ll only just be able to cover the rent – nothing else. It used to be that a woman’s pension age was 60. Now it’s 66. For Carol, it’s likely she won’t get the pension until 67, so she’s got another five years to work. They’re making it harder for people to claim their pensions. I worked 51 years to get where I am right now, and it doesn’t seem right that we can’t get help when we need it.
It doesn’t seem right that we can’t get help when we need it.
**28** Independent Age
Annual Report and Accounts 2023 **29**
## Managing risk
We have a risk management process that allows the Board to monitor and manage risks to the charity.
## These include:
- operational risks, managed through risk assessments
- strategic risks, considered as part of the planning and budgeting process and managed through the strategic risk register
- external risks, primarily reviewed through the strategic planning processes by considering potential scenarios.
In 2023 we developed our operational risk management framework, ensuring that all Heads of Department have risk registers for their areas of work. During 2024 we will be developing our risk appetite and upskilling colleagues in risk management.
The charity’s strategic risks, which could prevent us from achieving the outcomes we want, follow.
## Strategy and leadership
To be impactful, the charity needs to have a clear strategic focus and objectives. This is achieved through setting a strategic framework, and through annual planning and budgeting.
During 2023 we finalised our detailed strategic plan, with the key goal that, by 2027, we will have improved the lives of one million older people facing financial hardship. We also developed our impact strategy which demonstrates how we will achieve this through our grants, information and advice and new services.
We have not included the impact of our policy work in these figures, as it is difficult to attribute policy successes to one single organisation, however we are confident that our policy and influencing work will drive meaningful change.
## Impact
Failure to understand and evidence the impact we are making will affect our ability to improve our service offer, raise brand awareness, increase our voluntary income and benchmark ourselves against others.
During the first part of 2024, we will be developing our evaluation and impact measurement and reporting supported by an Impact and Evaluation Specialist.
## People and culture
Everything we do is dependent on our employees and volunteers and is for the benefit of older people. To help recruit, retain and develop our people, we invest in training, benchmark salaries, use employee engagement surveys and monitor staff turnover and sickness.
We have health and safety, safeguarding and whistleblowing policies, procedures and training in place, and effectively manage our employees and volunteers to make sure we operate safely.
## Financial sustainability
Our financial resources need to be invested and managed in a way that allows us to maximise impact now while remaining financially sustainable for the future. This risk is managed through our reserves policy, and our financial planning and reporting processes. We set annual income generation targets and have agreed a new strategy to increase our fundraised income to reduce reliance on our investments to fund our activities.
Investment market volatility is managed through our diversified investment strategy and monitoring of investment manager performance.
Trustees closely oversee this work through the Finance Audit and Risk Committee and Investments Subcommittee, which regularly report to the Board.
## Compliance and infrastructure
We must meet our regulatory obligations to manage our assets responsibly and protect everyone who interacts with us.
We do this by investing in our business systems, policies and procedures, and reviewing them regularly to make sure they remain fit for purpose.
## External environment
Our external environment remains volatile, complex and uncertain. Factors such as: geopolitical uncertainty; an increased cost base as a result of high inflation; the effect of the cost-of-living crisis on our beneficiaries, staff and volunteers; and the domestic political and economic agenda are likely to continue to affect the charity and its work in 2024.
We manage these risks through horizon scanning, and through clearly delegated authority to senior management and regular meetings of the Board and its committees. We can take decisions between Board meetings if needed, so we can respond quickly to change. Incident response teams are set up as required to react to specific issues. We review our plans and reforecast our financial out-turn twice a year and evaluate the difference our work is making.
## Reputation
Our work and our impact could be damaged by a decision we take, because of a poorly managed serious incident, or through association with third parties who are unethical or who develop a poor public profile.
We manage our reputation through clear decisionmaking processes, which are supported by our values and ethical policies. We have plans in place to respond to major incidents and crises, which we keep under review.
It was never explained to me about benefits, and I always thought it was for people who are desperate. And so I didn’t apply for anything.
Anonymous Helpline user
**30** Independent Age
Annual Report and Accounts 2023 **31**
## Financial review
## Results for 2023
The Consolidated Statement of Financial Activities on page 41 sets out the financial results as required by the Accounting and Reporting by Charities: Statement of Recommended Practice (Financial Reporting Standard 102).
The charity’s financial current strategy is to plan an annual operating deficit which it meets from its reserves each year. The operating Deficit in 2023 was £5.0 million (2022: £5.6 million). However, investment gains of £7.6 million in 2023 resulted in an overall surplus (net movement in funds) of £2.7 million. This compares with 2022 when losses on investment assets of £8.1 million led to an overall deficit of £13.7 million.
## Income
The charity’s income in 2023 was £7.6 million, a decrease of £0.2 million from 2022.
## Net voluntary income
Donations and Legacies fell by £1.7 million (45%) to £2.2 million. Legacy income fell by 21%, whilst voluntary income from other sources fell by 50%. This reduction was primarily due to the exceptional amount of income raised in 2022 for our cost-ofliving grants fund, which supports charities working with older people in greatest need.
At the end of 2023 the board approved a new ten-year fundraising strategy to grow the charity’s voluntary income and reduce its reliance on its investments. Whilst we continue to benefit from past fundraising programmes, the lack of new investment in individual giving and legacies in recent years as a result of the Covid pandemic and while the charity subsequently reviewed its strategy, has led to a reduction in this income.
|led to a reduction in this income.||
|---|---|
|Net voluntary income
2023|2022|
|£’000|£’000|
|Donations
1,289|
2,783|
|Grants
321|
423|
|Legacies
553|
702|
|Lotteries (Other trading activities)
135|
164|
|Subtotal
2,298|
4,072|
|Cost of raising voluntary income
1,391|
1,749|
|Other income
-|20|
|Net voluntary income
907|
2,343|
## Investment income and capital gains and losses
The charity remains very dependent on its investments, which this year generated approximately 70% of its income (2022: 47%). Investment income increased by 43% to £5.3 million. This resulted from higher interest rates combined with the transfer, at the start of the year, of approx. £25 million from a Baillie Gifford Diversified Growth Fund which reinvested the income to a Ruffer Diversified Growth Fund from which we received quarterly dividends.
After experiencing large falls in the value of our investments in 2022, we made gains on our investment assets of £7.6 million in 2023, although markets remain volatile. The charity targets an average total return (both income and capital) on its long-term portfolio of 3.5% per annum above inflation (measured by the Consumer Prices Index (CPI)) over rolling periods of five years.
Based on an opening long-term portfolio of £124.1 million, and with December 2023 CPI of 4%, we would therefore have expected on average to generate a total return of around £9.3 million on the long-term portfolio in 2023. The long-term portfolio delivered a total return of £10.3 million and the total portfolio delivered £12.9 million (£12.6 million after costs).
The trustees remain focused on our five-year rolling average benchmark. Performance of the long-term portfolio over the five years to December 2023 was 6.7% against a benchmark of 8.2%.
Included within the Gains on investment Assets of £7.6 million is a loss of £10,000 on assets held for sale following the revaluation of a property.
## Expenditure on charitable activities
Expenditure on charitable activities was £10.9 million, a decrease of £0.4 million (3%) compared with 2022, predominantly due to the closure of our Community Services work during the year.
Expenditure on National Services, which includes our Helpline and Information and Advice Guides, increased by £0.4m to £5.0m. Expenditure on Policy and Influencing was broadly unchanged at £2.5 million. Grants expenditure in 2023 was £1.9 million, including a further £1.0 million committed to a Cost-of-Living Grants fund. We hold a provision for grants to individuals (annuitants) to which we are committed. Following 2023 payments, and as a result of a decrease in the discount factor applied to the provision, a credit of £0.1 million was applied to grants expenditure this year. Having reduced our expenditure on Community Services in 2022, we reviewed the services and then brought them to a close during 2023, with expenditure falling by £0.7 million to £1.5 million in this final year.
## Reserves policy
Independent Age sets its reserves policy using a free reserves approach. Free reserves are the total reserves available less those either endowed or restricted, and those designated by trustees for a specific purpose or because they are held in property and fixed assets. Independent Age generally reviews its reserves policy annually, taking into consideration the major risks faced by the charity, their likely effect on income and planned expenditure, and an assessment of possible actions to mitigate those risks.
## Reserves
The charity’s Total funds increased by £2.7million in the year to £166.5 million. Reserves comprise endowments, a designated endowment funded activity protection fund, other designated funds, restricted funds and a general fund. The general fund, which is maintained at a level equivalent to one year’s budgeted expenditure other than that funded by the endowments, has been increased by £0.9 million to £12.3 million as at 31 December 2023. Transfers are made to the endowments and the endowments protection fund In order to maintain their value in line with CPI. This resulted in a reduction of £4.3 million in the designated Future Impact Fund at the end of 2023. More detail about the charity’s reserves follows:
||Reserves|2023|2022|
|---|---|---|---|
||Endowed (non-expendable and
related designated funds)
Other non-expendable funds
General Fund|£million
95.9
3.2
12.3|£million
87.3
3.3
11.4|
||Expendable restricted funds|7.7|
10.1|
||Future Impact Fund|47.4|
51.7|
||Total|166.5|
163.8|
## Endowment funds (£70.9 million)
These are permanent endowments. The trustees have adopted a Total Return Investment policy in accordance with Charity Commission regulations, so that both capital gains and income from investments can be applied to income. Trustees have elected to maintain the capital value of the endowments in real terms, with CPI as the benchmark.
Except for funds that are associated with specific properties, the capital on these funds is invested to provide income for charitable activities. The investment policy aims to provide a return of 3.5% per annum above CPI on a rolling five-year basis.
Any investment gains and income above CPI are transferred to the Unapplied Total Return Fund and then used to fund expenditure in the current year or immediate future.
Should any year experience a return below CPI, then
a negative balance is transferred to the Unapplied Total Return Fund and either offset against any existing positive balance or held there until such time as future returns on the investments eliminate the negative balance.
At the end of 2022, due to high inflation combined with investment losses, a negative balance of £6.9 million was held in the Unapplied Total Return Fund. Investment gains in 2023 reduced the negative balance to £1.9 million. This will be held until such time as future returns on the investments eliminate the negative balance.
**32** Independent Age
Annual Report and Accounts 2023 **33**
## Financial review
## Restricted reserves (£7.7 million)
These are funds that the charity will spend on activities specified by the restrictions of the fund. Restricted funds are invested until such time as they are used. Any capital gains or losses and income generated are allocated to restricted funds.
## Unrestricted reserves
These are funds over which the trustees have discretion in how they are used to further the objects of the charity.
In accordance with Charity Commission guidance, some of these funds have been designated to mitigate the charity’s financial risks and to indicate which reserves are held in property and fixed assets and are therefore not available as ‘free’ reserves.
## General Fund (£12.3 million)
Having reviewed the risks to the charity, the trustees consider that a general fund equivalent to one year’s unrestricted charitable expenditure – other than the amount funded by the endowments and protected by the reserve above – is required to protect the activity of the charity. The balance of unrestricted reserves is transferred to the designated Future Impact Fund.
General Fund reserves at the Balance Sheet date are in line with this policy amount, which has been calculated as £12.3 million. The trustees consider that this is sufficient to respond to short-term falls in income or increases in expenditure due to unforeseen circumstances.
I didn’t know about Pension Credit until I received the leaflet about it. That’s when I called Independent Age. Anonymous Helpline user
## Designated funds (£75.7 million)
The designations the trustees have made are as follows:
## The Endowment Funded Activity Protection Fund
There is a risk that the endowed investments will generate short-term negative returns while remaining on target to meet the rolling five-year benchmark set by the trustees. This could result in charitable activity being underfunded, potentially for several years, because of market volatility.
Having taken professional advice, which included modelling the impact of previous falls in markets and the Value at Risk of the investment portfolio, the trustees have designated a fund equivalent to 35% of
endowments, excluding those held as properties, to mitigate this risk. The endowment protection fund increased by £0.9 million in 2023 as the value of the endowments was maintained in line with CPI.
This fund may be used to cover the gap in funding charitable activities until any deficit arising on the Unapplied Total Return Fund is eliminated.
## Tangible and Intangible Fixed Assets Fund and Investment Property and Assets Held For Sale Funds
The purpose of these designated funds is to indicate reserves that are not available for expenditure because they are related to property or other capital assets.
It is the charity’s intention to realise the value of the investment properties where possible, once the obligations to current tenants have been met.
## Future Impact Fund
Having set aside amounts to manage the financial risks of the charity, the balance of unrestricted reserves has been designated as the Future Impact Fund, to be used in the near to medium term to increase our impact.
More detail about these funds is contained in Notes 19 and 20 to the Financial Statements from page 62.
## Universal Beneficent Society Fund
This fund was created to show legacies to Universal Beneficent Society. See Note 19.
## Investment policy
The charity drew down £7.5 million of investment capital to fund activities during 2023. Investment gains during the year were £7.6 million. This took the total value of our investments from £159.2 million at 31 December 2022 to £159.3 million at 31 December 2023.
The composition of the investment portfolio at 31 December 2023 is set out in Note 12 to the Financial Statements on page 56.
During the year the Investments Subcommittee continued to closely monitor the performance and investment style of fund managers in light of the wars in Ukraine and the Middle East and other geopolitical events. £5.0 million was disinvested from the M&G Multi Asset Credit Fund and transferred to the BlackRock Fund and £25.0 million was disinvested from a Baillie Gifford Growth Fund and transferred into a Ruffer Diversified Growth Fund. As at 31 December 2023 the balance on the Short-term Portfolio was £34.0 million, of which £12.6 million was held with BlackRock in line with the policy to maintain a balance of between 12 and 18 months of operational cash flow requirements in quoted liquid funds. This approach is designed to minimise the risk of liquidating assets at an undervalue when markets fall.
The Board approved the charity’s approach to responsible investment in early 2022. The trustees believe responsible investment is important to better align their approach to investing with the charity’s purpose and to manage and mitigate financial and reputational risks.
The trustees have a strong preference for actively engaging with investment managers and companies over exclusion-based investment, because they believe this approach is both best practice and more likely to lead to changes in corporate behaviour. However, the trustees believe that the charity should exclude material investments in tobacco and controversial weapons, because investing in:
- tobacco runs directly counter to the charity’s strategy to improve health outcomes for older people
- controversial weapons present sufficient risk to the charity’s brand and reputation with current and future donors and beneficiaries to warrant exclusion.
The trustees believe that potential investments in climate-tilted funds and other climate-positive investment approaches should be considered in all future investment decisions. They believe such investments should be assessed on a financial basis, rather than being preferred on principle for environmental, social and governance reasons.
Given the size of the charity’s investment portfolio, the trustees believe the most appropriate strategy for investing responsibly – while maximising riskadjusted financial returns – is to appoint investment managers and invest in pooled investment funds. These, where practical and proportionate, align with the trustees’ beliefs on responsible investment and trustees are able to hold them actively to account for the performance of those funds.
## Grant-making policy
During 2023 we developed our grant-making strategy in line with the new organisational strategy. The strategy is to grow our grants programmes, and trustees have earmarked up to £11.0 million for grants from 2024 to 2026, with the expectation that up to £5.0 million of this will be committed in 2024. We also started to develop our grant making policy this year, for finalisation in 2024.
Independent Age operates several grants programmes each year, depending on priorities and levels of available funding. The charity is committed to high standards of grants governance, and we publish our grant-making criteria, including the activities and work the charity wishes to support.
Grant-making processes are transparent and are intended to safeguard Independent Age’s funds whilst being mindful of the needs of applicants and of the expectations of funding partners. Applications are reviewed, a risk assessment carried out, and they are assessed against programme specific criteria by a grants panel before an award is made.
We usually award restricted grants which are generally for between one and three years. Grants partners are required to complete funding reports at designated intervals and may be asked to provide receipts and other financial accounting details to ensure grant monies are spent as intended. Payment may be staged in instalments, contingent on satisfactory delivery in line with the terms and conditions.
**34** Independent Age
Annual Report and Accounts 2023 **35**
## Financial review
In 2023 we committed £1.5 million to grants, of which £0.9 million was for cost-of-living grants. We also granted £226,000 for locally and culturally informed solutions addressing financial hardship for older people in Essex and Middlesbrough. The balance was awarded primarily to: continuing our strategic partnership with the National Academy of Social Prescribing; and to the Greater Manchester Combined Authority, with whom we started collaborating in 2022 on a pilot project to establish networks and explore the best pathways for local people in financial hardship, and to Re-Engage to support the transition of older people who had been using our Befriending Service. Grants awarded under the cost-of-living and local grants programmes ranged from £10,000 to £99,000, with an average grant award of £39,000. The local grants programme was developed in 2022 and aligned to our Community Services work and delivery locations; following the closure of Community Servies in 2023, the local grants programme will not continue.
## Public benefit
The public benefit of the charity is set out in our mission, which is to improve the lives of a million people facing financial hardship by 2027.
Our work benefits tens of thousands of older people, their families and carers across the UK. Our Helpline and information resources also benefit those who work with older people. All our services are free and without restriction.
In setting our objectives and planning activities for the year, the Board of Trustees confirms that it has considered the Charity Commission’s guidance on public benefit and considers that Independent Age clearly satisfies the public benefit test.
We continued to make regular grant payments directly to older people. We paid out £570,000 in 2023 (2022: £651,000) to around 810 (2022: 920) older people as part of this legacy programme. Taking into account movements in the provision and discount rate for regular (annuitant) payments, there was a credit of £96,000 to expenditure for direct grants to older people in the year. We no longer accept new applications to this programme.
With the energy crisis as well, I don’t drink tea anymore, because putting the kettle on, six pence. Got to try and pull my belt in, in many ways. Peter, Cornwall
**----- Start of picture text -----**
Stephen’s story
**----- End of picture text -----**
It’s been difficult lately with our health. Marg had breast cancer and then I had an aneurysm. Then I got leukaemia – they called the family to say I wasn’t going to make it. I pulled through but it’s damaged my heart and I struggle to walk. Our two daughters live not too far away, and our grandson comes over once a week to help out.
I live with my wife, Marg. We’ve been married for 57 years. I’m 80 and spent my life working on farms and with horses, including 25 years as maintenance manager at Bath Racecourse. I met the late Queen quite often at the races and use to take the present King hunting.
I get the State Pension and another small pension – which should have paid out £400 a month, but it’s only come to £90. I think it must have been bad investments. Marg just gets the basic State Pension.
I was worried before – but now I’m happy with how things are going for us financially. I’m very grateful for the help we could get. If the pension was higher, we wouldn’t need the benefits. But you do the best with what you’ve got.
I phoned up Independent Age to ask about Pension Credit. Our combined pensions were getting a bit tight, and we were cutting back on things to pay the bills. Our number one cost was the heating, so we reduced that. We sold the car because the insurance and petrol costs were so high and bought a mobility scooter instead. I grow quite a bit in the garden, so we were managing with food costs.
Through Independent Age, we discovered we were entitled to quite a bit more than we thought: the higher rate of Attendance Allowance, Council Tax Reduction and, because we qualified for Guarantee Pension Credit, free eye and dental care. We’re a lot better off now thanks to the benefits. I’ve used some of the money to buy a wood burner, which heats the whole house and saves on gas.
I was worried before – but now I’m happy with how things are going for us financially.
**36** Independent Age
Annual Report and Accounts 2023 **37**
## Statement of trustees’ responsibilities
The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the transactions of the charity and the group, and disclose with reasonable accuracy, at any time, the financial position of the charity and the group, and that enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the Royal Charter. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps to prevent and detect fraud and other irregularities.
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law, applicable to charities in England and Wales and Scotland, 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 charity and the group, and of the incoming resources and application of resources of the 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 the Charities Statement of Recommended Practice (SORP)
## The Trustees confirm that:
- so far as each Trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware
- make judgements and accounting estimates that are reasonable and prudent
- the Trustees have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and charity will continue in business.
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.
Approved by the Board of Trustees on 6 June 2024 and signed on its behalf by:
Baroness Julia Neuberger, DBE Chair of the Board of Trustees
## Independent Auditor’s Report to the Trustees of Royal United Kingdom Beneficent Association (Independent Age)
## 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 group and parent charity 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.
We have audited the financial statements of Independent Age (the ‘parent charity’) and its subsidiaries for the year ended 31 December 2023 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheets, the Consolidated 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, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
## Conclusions relating to going concern
In our opinion the financial statements:
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.
- give a true and fair view of the state of the groups and charity’s affairs as at 31 December 2023 and of their incoming resources and application of resources for the year then ended;
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 group’s or parent charity’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.
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
- have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 and the terms of the Royal Charter.
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 other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.
## Basis for opinion
We have been appointed auditors under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 151 of the Charities Act 2011 and report in accordance with regulations made under those Acts.
**38** Independent Age
Annual Report and Accounts 2023 **39**
## Independent Auditor’s Report to the Trustees of Royal United Kingdom Beneficent Association (Independent Age)
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 course of 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.
## Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the Trustees’ Report; or
- sufficient accounting records have not been kept by the parent charity; or
- the parent charity financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## Responsibilities of trustees
As explained more fully in the Statement of Trustees’ responsibilities set out on page 36, the trustees 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 group’s and parent charity’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 group or parent charity 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.
The extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
- obtained an understanding of the nature of the sector, including the legal and regulatory framework, that the group and parent charity operates in and how the group and parent charity is complying with the legal and regulatory framework;
- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Charities and Trustee Investment (Scotland) Act 2005, regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), and the Charities Act 2011, the parent charity’s governing document, tax legislation. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, inspecting correspondence with tax authorities.
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to General Data Protection Regulations and safeguarding legislation. We performed audit procedures to inquire of management whether the charitable company is in compliance with these law and regulations and inspected correspondence with regulatory authorities.
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.
A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://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 charity’s trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 and the terms of the Royal Charter. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## RSM UK AUDIT LLP
Statutory Auditor Chartered Accountants 25 Farringdon Street London EC4A 4AB
RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
19 June 2024
**40** Independent Age
Annual Report and Accounts 2023 **41**
## Financial statements
It has been a very difficult past two years. But Independent Age gave me my dignity back. Without them, I think I’d be homeless. Thabani, London
## Consolidated Statement of Financial Activities
for the year ended 31 December 2023
||||||Year to 31|Year to 31|
|---|---|---|---|---|---|---|
||||||December|December|
||||||2023|2022|
|||Unrestricted|Restricted|Endowed|Total|Total|
|Consolidated Statement of Financial||funds|funds|funds|funds|funds|
|Activities|Notes|£’000|£’000|£’000|£’000|£’000|
|Income and endowments from|||||||
|Donations and legacies|2|1,783|380|-|2,163|3,908|
|Other trading activities|-|135|-|-|135|164|
|Investment income|3|2,023|244|3,044|5,311|3,702|
|Other income|-|-|-|-|-|20|
|Total income and endowments|-|3,941|624|3,044|7,609|7,794|
|Expenditure on raising funds|||||||
|Raising voluntary income|4|1,391|-|-|1,391|1,749|
|Investment and property management|-|220|8|88|316|404|
|Total cost of raising funds|-|1,611|8|88|1,707|2,153|
|Expenditure on charitable activities|||||||
|National Services|4|2,005|2,975|-|4,980|4,595|
|Community Services|4|1,277|197|-|1,474|2,210|
|Policy and Influencing|4|2,516|-|-|2,516|2,433|
|Grant Making|4,5,17|1,849|44|-|1,893|1,996|
|Total cost of charitable activities||7,647|3,216|-|10,863|11,234|
||||||||
|Total expenditure|-|9,258|3,224|88|12,570|13,387|
||||||||
|Operating (deficit)/surplus|-|(5,317)|(2,600)|2,956|(4,961)|(5,593)|
||||||||
|Gains/(losses) on investment assets|11,12,14|2,743|158|4,725|7,626|(8,079)|
|Net income/(expenditure)|--|(2,574)|(2,442)|7,681|2,665|(13,672)|
|Other recognised gains/(losses)|||||||
|Re-measurement of the defined|||||||
|benefit pension scheme|18|47|-|-|47|-|
|Net movement in funds|-|(2,527)|(2,442)|7,681|2,712|(13,672)|
|Reconciliation of funds|||||||
|Fund balances brought forward at|||||||
|1 January|-|90,535|10,105|63,169|163,809|177,481|
|Fund balances carried forward at|||||||
|31 December|19|88,008|7,663|70,850|166,521|163,809|
All of the above results are derived from continuing activities. There are no other recognised gains or losses other than those stated above. Notes 1 to 25 form part of the financial statements.
**42** Independent Age
Annual Report and Accounts 2023 **43**
## Group and Charity Balance Sheets
## as at 31 December 2023
## Group and Charity Statements of Cash Flows
for the year ended 31 December 2023
|||Group 2023|Group 2022|Charity 2023|Charity 2022|
|---|---|---|---|---|---|
|||Total funds|Total funds|Total funds|Total funds|
|Group and Charity Balance Sheets|Notes|£’000|£’000|£’000|£’000|
|Fixed assets||||||
|Tangible assets|9|1,715|1,804|1,715|1,804|
|Intangible assets|10|45|7|45|7|
|Investment properties|11|2,520|2,670|2,520|2,670|
|Investments|12|159,287|159,152|159,287|159,152|
|Concessionary loans|13|60|60|60|60|
|Total fixed assets||163,627|163,693|163,627|163,693|
|Current assets||||||
|Assets held for sale|14|3,365|3,225|3,365|3,225|
|Debtors|15|1,929|1,372|1,938|1,381|
|Cash at bank and in hand|-|2,455|1,546|2,438|1,529|
|Total current assets||7,749|6,143|7,741|6,135|
|||||||
|Creditors: amounts falling due within||||||
|one year|16|(2,003)|(2,585)|(1,999)|(2,583)|
|||||||
|Net current assets|-|5,746|3,558|5,742|3,552|
|||||||
|Total assets less current liabilities|-|169,373|167,251|169,369|167,245|
|||||||
|Provisions: amounts falling due after||||||
|one year|17|(2,852)|(3,442)|(2,852)|(3,442)|
|Net assets|-|166,521|163,809|166,517|163,803|
|The funds of the charity||||||
|Endowed funds|-19|70,850|63,169|70,850|63,169|
|Restricted funds|-19|7,663|10,105|7,663|10,105|
|Unrestricted funds||||||
|Designated funds|19|75,716|79,094|75,716|79,094|
|General fund|19|12,292|11,441|12,288|11,435|
|Total unrestricted funds||88,008|90,535|88,004|90,529|
|||||||
|Total charity funds|-|166,521|163,809|166,517|163,803|
|||Group|Group|Charity|Charity|
|---|---|---|---|---|---|
|||2023|2022|2023|2022|
|Group and Charity Statements of Cash flows|Notes|£’000|£’000|£’000|£’000|
|Net cash outflow from operating activities||||||
|Net cash used in operating activities|22|(11,860)|(10,170)|(11,860)|(10,098)|
|||||||
|Cash flow from investing activities||||||
|Payments to acquire tangible fixed assets|9|(9)|(5)|(9)|(5)|
|Payments to acquire intangible fixed assets|10|(50)|-|(50)|-|
|Payments to acquire investments|112212|(30,041)|(15,346)|(30,041)|(15,346)|
|Loan repayments received|11313|16|7|16|7|
|Receipts from sales of investments and cash||37,542|20,377|37,542|20,377|
|transfers||||||
|Interest received|3|26|5|26|5|
|Dividends received|3|5,248|3,655|5,248|3,655|
|Rents received from investment properties|3|37|42|37|42|
|Net cash flow from investment activities||12,769|8,735|12,769|8,735|
|||||||
|Net increase/(decrease) in cash and cash||909|(1,435)|909|(1,363)|
|equivalents||||||
|Cash and cash equivalents at 1 January||1,546|2,981|1,529|2,892|
|Cash and cash equivalents at 31 December||2,455|1,546|2,438|1,529|
Notes 1 to 25 form part of the financial statements.
Approved by the Board of Trustees and authorised for issue on 6 June 2024 and signed on their behalf by:
## Baroness Julia Neuberger, DBE, Chair
Notes 1 to 25 form part of the financial statements.
**44** Independent Age
Annual Report and Accounts 2023 **45**
## Notes to the Financial Statements
for the year ended 31 December 2023
## 1. Accounting policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows.
## a) Basis of preparation
The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.
The going concern basis has been adopted because, having considered the risks and uncertainties to which the charity is exposed, and the current strong reserves position, the trustees have a reasonable expectation that Independent Age will continue in operation for the foreseeable future and meet its liabilities as they fall due.
The statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (Charities SORP) 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, and the Charities Act 2011 and the Charities and Trustees (Scotland) Act (2005) and the Charities Accounts (Scotland) Regulations 2006.
The Consolidated Statement of Financial Activities, Group Balance Sheet and Group Statement of Cash Flows consolidate the financial statements of Independent Age and Counsel and Care for the Elderly (Counsel and Care), which is a registered charity (203429) and a limited company (645708), and Independent Age Enterprises Limited (IAE Ltd), a limited company (04735201). For the purposes of the financial statements, Independent Age is deemed to control 100% of Counsel and Care and IAE Ltd because it is the sole legal member of both companies. The results of Counsel and Care and IAE Ltd are consolidated on a line-by-line basis. The income, expenditure and funds of Counsel and Care and summary trading results for IAE Ltd are shown in Note 19 and Note 21.
The net movement of funds of Independent Age, the charity, was £2,714,000 surplus (2022: £13,661,000 deficit). The charity’s income and expenditure is shown in Note 25.
The charity has been entered on the Scottish Charity Register (SC047184) as of 17 February 2017.
Independent Age meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The accounts are presented in pounds, the functional currency of the charity and group, and are rounded to the nearest thousand.
## b) Fund accounting
Independent Age has a number of discrete funds which are grouped by type as shown below.
## Endowed funds
These are funds normally arising as a result of a Will that contained restrictions on the retention of the capital value and disposal of any income.
The General Endowment Fund was created by the Supplementary Royal Charter, which came into effect on 1 August 2014.
Independent Age is the Managing Trustee of the F E Cobbold Trust Fund, Backsettown Endowed Charity and Wharton & Wittrick Fund. As such, the Board of Trustees considers and approves resolutions specific to these funds as appropriate.
As shown in Note 1 c), the trustees are required to maintain the capital of these funds, but they may choose to spend some or all of the income and the Unapplied Total Return – see Note 19.
## Restricted funds
These are funds that can be spent, at the discretion of the trustees, on particular restricted purposes within the objects of Independent Age. Restrictions arise when specified by the donor, as modified by any Charity Commission scheme, or when funds are raised for particular purposes.
Where assets have been transferred to Independent Age under Charity Commission schemes, and there are restrictions as to the use of the sums transferred, these are treated as Restricted Funds.
## Unrestricted funds
These are funds that can be spent in accordance with Independent Age’s objects at the discretion of the trustees.
## Designated funds
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes.
## General Fund
This Fund represents the charity’s free reserves, equivalent to one year’s unrestricted charitable expenditure, other than the amount funded by the endowment funds, to protect the planned activity of the charity from unforeseen shortfalls in income or unplanned additional costs.
Further details of the charity’s funds are disclosed in Note 19.
## c) Total Return Accounting
Independent Age adopted Total Return Accounting for its permanent endowed funds with effect from 1 January 2015. This adoption is permitted for the General Endowment Fund by virtue of the Byelaws to the Supplementary Royal Charter 2014 and for the other permanent endowed funds through the resolutions relating to the other funds passed by the Board of Trustees in December 2014.
The trustees have chosen to maintain the capital of the permanent endowed funds in real terms by making a transfer from the Unapplied Total Return equal to the increase in Consumer Price Index (CPI) from the base point to the Balance Sheet date. Any amounts remaining after this transfer in the Unapplied Total Return will be applied to income funds or retained as the trustees see fit. Any income funds not disbursed in the financial year are retained as Unapplied Total Return. Should any year experience a negative return, a negative balance will be held in the Unapplied Total Return Fund until such time as future returns on the investments eliminate it.
## d) Income recognition
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following specific policies apply to categories of income:
Donations are recognised when the charity has been notified in writing of both the amount and settlement date or on a receipts basis if earlier. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
Income from government and other grants is recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.
Legacy gifts are recognised on a case-by-case basis following the granting of probate and when sufficient information has been received to judge the receipt of income as probable. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy. Reversionary legacies are not recognised during the lifetime of the original beneficiary under the will.
Gifts in kind and donated services are included at the value to the charity where this can be quantified (that is, the price the charity would have paid on the open market). An equivalent amount is recognised in costs. No amounts are included in the financial statements for services donated by volunteers.
**46** Independent Age
Annual Report and Accounts 2023 **47**
## Notes to the Financial Statements
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally on notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally on notification by our investment adviser of the dividend yield of the investment portfolio. This also applies to returns on accumulation units held in pooled funds, which are reinvested by default.
Where investment management costs incurred within a scheme can be measured with reasonable accuracy, costs are included within cost of raising funds. Where it is not practicable to identify such costs with reasonable accuracy, the investment income is reported net of these costs.
## e) 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 settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. The charity is not registered for VAT so is unable to recover any VAT paid, therefore costs include VAT where applicable. IAE Ltd is registered for VAT so is able to recover VAT incurred on business activities. Income and expenditure of IAE Ltd is, therefore, accounted for on an accruals basis net of VAT. Grant payments are recognised as expenditure when the conditions for their payment have been met or where there is a constructive obligation to make a payment. A constructive obligation arises when:
- the charity has communicated its intention to award a grant to a recipient who then has a reasonable expectation that they will receive a grant, or
- the charity has made a public announcement about a commitment that is specific enough for the recipient to have a reasonable expectation that they will receive a grant.
Grants are not usually awarded with conditions attached. However, when they are, then those conditions have to be met before the liability is recognised.
Where an intention has not been communicated, then no expenditure is recognised, but an appropriate designation may be made in the appropriate fund. If a grant has been offered but there is uncertainty as to whether it will be accepted or whether conditions will be met, then no liability is recognised but a contingent liability is disclosed.
Expenditure on raising funds comprises investment and property management fees and the direct costs of raising voluntary income where not included within charitable activities.
Charitable activities comprise direct expenditure, including 20% of the total costs of raising voluntary income invested in generating funds to further the objects of the charity for information and advice, and a proportion of the support costs.
Support costs include governance costs and other indirect costs. Governance costs comprise all expenditure involving the public accountability of the charity and its compliance with regulation and good practice. These costs include some legal fees, plus the costs of trustees’ and Charter Members’ meetings, the costs of compliance such as audit fees and staff time spent serving the committees. Support costs (including Governance costs) are allocated to the costs of Raising Funds and Charitable Activities on the basis of the numbers of staff engaged in each of these elements. This allocation is reviewed annually.
## f) Tangible and intangible assets
Tangible and intangible individual assets costing £5,000 or more, including any incidental expenses of acquisition, are capitalised and recorded at cost.
The costs of implementing computer software designed to improve the handling of data within the charity, with a consequent cost savings benefit, have been capitalised as intangible assets.
Depreciation/amortisation is calculated and charged to the Statement of Financial Activities on a quarterly basis commencing in the first full quarter after the asset was acquired/came into use.
Depreciation/amortisation is calculated so as to write off the cost of the assets on a straight-line basis over the expected useful economic lives of the assets concerned, which are taken as:
## Tangible assets _Plant and machinery_
Electrical installations 10 to 25 years Mechanical installations 10 to 25 years Architectural components 20 to 30 years Lift 15 years
The expected useful economic life of each item of plant and machinery has been determined by independent consulting quantity surveyors.
_Fixtures, fittings and equipment_
Furniture and fittings 10 to 15 years ICT hardware 3 years Office equipment 3 years _Buildings_ Freehold buildings 50 years
No value has historically been recorded for freehold land owned by the charity because it cannot be practically measured.
Intangible assets Computer software 3 years
Representing the useful economic life of the assets.
## g) Investment properties
The Board of Trustees determined in February 2014 that all property not required for operational purposes should be disposed of at the appropriate time. Prior to sale these properties are treated as investment properties. Investment properties are initially recognised at their transaction value and subsequently measured at their fair value as at the Balance Sheet date. Fair value is ascertained either by an independent valuer or reference to movements in the market value of similar properties.
Surpluses on the sale of properties are taken to the Statement of Financial Activities as they are realised. Unrealised gains and losses on revaluation of investment properties are shown in the Statement of Financial Activities.
Properties for sale at the Balance Sheet date are reported as assets held for sale within current assets.
## h) Investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value using the closing quoted market price. All gains and losses are taken to the Statement of Financial Activities as they arise. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year. As investments are revalued continuously to fair value, no realised gains or losses arise.
The charity does not acquire or hold put options, derivatives or other complex financial instruments.
## i) Financial Instruments
The charity only holds basic financial instruments. The financial assets and financial liabilities of the charity are as follows:
Debtors – trade and other debtors (including accrued income) are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 15. Prepayments are not financial instruments.
Cash at bank – is classified as a basic financial instrument and is measured at face value.
Liabilities – trade creditors, accruals and other creditors are classified as financial instruments, and are measured at amortised cost as detailed in Note 16. Taxation and social security are not included in the financial instruments disclosure. Deferred income is not deemed to be a financial liability, because the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.
**48** Independent Age
Annual Report and Accounts 2023 **49**
## Notes to the Financial Statements
## j) Concessionary loans
These are amounts that were awarded to further the charity’s purposes as loans to individual beneficiaries who were leaseholders or freeholders of their property, mainly for household repairs and maintenance. The loans are not subject to interest charges. The practice of awarding such loans was ended in May 2014 and no further loans will be made.
It is expected that loans will be repaid when the beneficiary has the capital available or from the beneficiary’s estate on the death of the beneficiary.
A provision for non-repayment is made against the aggregate value of loans issued and is reviewed annually. The provision has been calculated as 67% (2022: 67%) based on past experience of repayments and on management’s current expectations. Loans are written off when there is no realistic prospect of any further recovery and are treated as charitable expenditure.
## k) Regular payments provision
These are life-long bimonthly payments made to individuals (annuitants). Payments are no longer awarded to new beneficiaries. The estimated net present value of the regular payments to Independent Age’s beneficiaries is treated as a longterm liability. The long-term provision is calculated using life expectancy tables to determine the period for which the regular payments may be made. The commitment is discounted using a rate based on the discount rate used for the defined benefit pension scheme, adjusted for the differing expected timeframes of the two liabilities. The movement on the regular payments provision is included within grant-making in the Statement of Financial Activities. The movement in the year includes the unwinding of the discount factor used to estimate the current value of future commitments.
Regular payments due in more than one year are shown as provisions as they represent an estimate of future outflows and therefore there is some uncertainty in the accounting estimates used in their calculation.
## l) Pensions
Independent Age operates a defined contributions pension scheme for its staff. Contributions are accounted for in the period to which they relate. This scheme has been accredited for the purposes of auto-enrolment.
Independent Age also operates a defined benefits (final salary) pension scheme, which has deferred and pension members, but no active members. The current service costs of the scheme, together with the interest cost less the expected return on assets for the year, are charged to the Statement of Financial Activities within staff costs. The actuarial gains and losses are recognised immediately after net income/ expenditure as other recognised gains and losses. Further details are provided in Note 18.
The assets of the scheme are measured at fair value at the Balance Sheet date. Liabilities are measured on an actuarial basis at the Balance Sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term to the scheme liabilities. Any resulting defined benefit pension liability is presented separately after any other net assets on the face of the Balance Sheet. A resulting surplus is restricted to zero because it cannot be returned to the employer.
## m) Foreign currencies
Foreign currency transactions are initially recognised by applying the exchange rate between the functional currency and the foreign currency at the spot rate on the date of the transaction.
Monetary assets and liabilities denominated in a foreign currency at the Balance Sheet date are translated using the closing rate.
## n) Taxation
Independent Age is a registered charity (210729) and as such is entitled to certain tax exemptions on income and profits on investments and surpluses on any trading activities carried on to further the charity’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.
## o) Redundancy and termination payments
Redundancy and termination costs are recognised as an expense in the Statement of Financial Activities and a liability on the Balance Sheet immediately at the point the charity is demonstrably committed to terminate the employment of an employee or group of employees before normal retirement date. The charity is considered to be demonstrably committed only when it has a detailed formal plan for the termination and is without realistic possibility of withdrawal from the plan.
p) Critical accounting estimates and judgements In preparing the financial statements the trustees are required to make certain estimates and judgements that have an impact on the carrying value of assets and liabilities. These estimates and assumptions are reviewed on an ongoing basis, and are based on historical experience and other factors considered relevant at the time the estimates and judgements are made. The key sources of estimation uncertainty are:
- defined benefit pension scheme – measurement requires a number of significant assumptions as disclosed in Note 18
- regular payments provision – the charity provides for future regular payments to its annuitants, a life-long commitment to each individual. Estimation uncertainty arises from the discount rate applied to reflect the time value of money, and assumptions around life expectancy. Further details of how this provision is calculated can be found in Note 17
- investment properties – the charity holds a number of investment properties that it carries on the Balance Sheet at fair value. Further detail is provided in Note 11
- assets held for sale – these are investment properties held for sale at the Balance Sheet date carried at fair value. Measurement of the fair value of the land at Henfield requires a number of assumptions about local market conditions and other factors. The charity has accepted an offer for sale of the land and has exchanged contracts with the buyer. A reduction on the sales price of up to £290,000 has been accepted to resolve a water neutrality issue. The sales price has been discounted by around 20% following consultation with advisers Daniel Watney LLP, to reflect the remaining risks to the sale, primarily that it is subject to obtaining planning permission. Further detail is provided in Note 14.
**50** Independent Age
Annual Report and Accounts 2023 **51**
## Notes to the Financial Statements
## 2. Donations and legacies
|2. Donations and legacies|||||
|---|---|---|---|---|
|||||2023|
||Unrestricted|Restricted|Endowed|Total|
||funds|funds|funds|funds|
|Current year|£’000|£’000|£’000|£’000|
|Donations|1,174|115|-|1,289|
|Grants|56|265|-|321|
|Legacies|553|-|-|553|
|Total|1,783|380|-|2,163|
Donations include £385,173 (2022: £357,620) of donated services received in the year.
|||||2022|
|---|---|---|---|---|
||Unrestricted|Restricted|Endowed|Total|
||funds|funds|funds|funds|
|Previous year|£’000|£’000|£’000|£’000|
|Donations|1,167|1,616|-|2,783|
|Grants|101|322|-|423|
|Legacies|702|-|-|702|
|Total|1,970|1,938|-|3,908|
## 3. Investment income
|3. Investment income|||||
|---|---|---|---|---|
|||||2023|
||Unrestricted|Restricted|Endowed|Total|
||funds|funds|funds|funds|
|Current year|£’000|£’000|£’000|£’000|
|Fixed interest income|26|-|-|26|
|Dividend income|1,960|244|3,044|5,248|
|Investment property rental income|37|-|-|37|
|Total|2,023|244|3,044|5,311|
|||||2022|
||Unrestricted|Restricted|Endowed|Total|
||funds|funds|funds|funds|
|Previous year|£’000|£’000|£’000|£’000|
|Fixed interest income|5|-|-|5|
|Dividend income|1,122|108|2,425|3,655|
|Investment property rental income|42|-|-|42|
|Total|1,169|108|2,425|3,702|
## 4. Expenditure allocations
||Raising|||||||||
|---|---|---|---|---|---|---|---|---|---|
||Voluntary|National|Community|Policy and|Grant|Marketing|2023|||
||Income|Services|Services|Influencing|Making|and Comms|Total|||
|Current year|£’000|£’000|£’000|£’000|£’000|£’000|£’000|||
|Staff costs|569|1,514|
752|847|244|782|4,708|||
|Non-staff costs
Sub total – Direct costs
Support costs
Sub total – All costs
Reallocation – Fundraising|848
1,417
321
1,738
(347)|790
2,304
1,531
3,835
347|
30
782
266
1,048
-|257
1,104
615
1,719
-|1,400
1,644
143
1,787
-|721
1,503
624
2,127
-|4,046
8,754
3,500
12,254
-|
Strategic report||
|Reallocation – Marketing and|-|798|
426|797|106|(2,127)|-|||
|Comms||||||||||
|Expenditure by charitable|1,391|4,980|
1,474|2,516|1,893|-|12,254|||
|activity||||||||||
|Investment and property management|||||||316|||
|Total expenditure|||||||12,570|||
|Previous year
Staff costs
Non-staff costs
Sub total – Direct costs
Support costs
Sub total – All costs
Reallocation – Fundraising
Reallocation – Marketing and
Comms|Raising
Voluntary
Income
£’000
577
1,226
1,803
383
2,186
(437)
-|National
Services
£’000
1,184
719
1,903
1,501
3,404
437
754|Community
Services
£’000
1,166
83
1,249
558
1,807
-
403|Policy and
Influencing
£’000
751
389
1,140
538
1,678
-
755|Grant
Making
£’000
246
1,489
1,735
160
1,895
-
101|Marketing
and Comms
£’000
655
871
1,526
487
2,013
-
(2,013)|2022
Total
£’000
4,579
4,777
9,356
3,627
12,983
-
-|
Independent Auditor’s report||
|Expenditure by charitable|1,749|4,595|
2,210|2,433|1,996|-|12,983|||
|activity
Investment and property management
Total expenditure
Support costs
Chief Executive’s Office||Staff
costs
£’000
149|Non-staff
costs
£’000
3|2023
Total
£’000
152|Staff
costs
£’000
154|Non-staff
costs
£’000
3|404
13,387
2022
Total
£’000
157|
Financial statements||
|Corporate Services||30|-|30|95|-|95|||
|Facilities||256|352|608|247|336|583|||
|ICT||738|438|1,176|750|470|1,220|||
|People and Organisational Development||527|372|899|516|374|890|||
|Finance
Governance
Total||486
78
2,264|19
52
1,236|505
130
3,500|459
53
2,274|30
140
1,353|489
193
3,627|
admini|Legal a|
**52** Independent Age
Annual Report and Accounts 2023 **53**
## Notes to the Financial Statements
## Note 4 continued
|Note 4 continued|||
|---|---|---|
||2023|2022|
|Governance costs|£’000|£’000|
|Auditor’s remuneration for the statutory audit of the financial statements – current year|40|44|
|Auditor’s remuneration for the statutory audit of the financial statements – prior year|-|45|
|Legal and other professional fees|-|3|
|Trustee recruitment fees|6|45|
|Trustees’ meetings including expenses and AGM costs|5|3|
|Staff costs|78|53|
|Total governance costs|129|193|
The apportionment of support costs was made pro rata to the number of staff (full-time equivalent) in each of the activity areas.
The charity indemnifies trustees in respect of any liability arising from or in respect of the charity.
## 5. Regular payments and grants
|5. Regular payments and grants|||||
|---|---|---|---|---|
|||Support|||
||Grants|costs|2023|2022|
|Regular Payments and Grants|£’000|£’000|£’000|£’000|
|Grants to institutions|||||
|Cost-of-Living Grants|945|339|1,284|2,499|
|Grant to National Academy of Social Prescribing|200|70|270|-|
|Local Grants|226|79|305|-|
|Other Grants|95|35|130|96|
|Total Grants to institutions|1,466|523|1,989|2,595|
||||||
|Grants to Individuals (Annuitants)|(96)|-|(96)|(599)|
|Total|1,370|523|1,893|1,996|
In 2023 the charity committed £1.5m to 36 grants delivery partners, primarily local charities and community organisations.
The negative expenditure on grants to individuals results from the movement in the provision and unwinding of the discount (see note 17).
## 6. Staff costs and employee benefits
||6. Staff costs and employee benefits||||
|---|---|---|---|---|
|||2023|2022||
||Costs and benefits?|£’000|£’000||
||Salaries|5,593|
5,539||
||Temporary staff costs|63|
188||
||Employer National Insurance
Employer defined contribution pension costs
Employer defined benefit pension costs
Sub total
Redundancy and termination payments
Total|601
526
72
6,855
117
6,972|
595
453
73
6,848
5
6,853|Strategic report|
||Total remuneration of the key management personnel (the trustees with the Senior Leadership||Team,||
||comprising the Chief Executive and Directors), including Pension and National Insurance contributions,||||
||was £582,844 (2022: £603,399).||||
||7. Average monthly staff numbers
National services and Grant making
Community services
Policy and influencing
Fundraising
Marketing and communications
Support services
Total
8. Number of employees with total emoluments (excluding p|2023
45
7
17
9
17
33
128
ensions)|2022
47
16
15
11
14
34
137|Independent Auditor’s report|
8. Number of employees with total emoluments (excluding pensions) of more than £60,000
|
of more than £60,000|||
|---|---|---|
||2023|2022|
|£60,001 – £70,000|8|
9|
|£70,001 – £80,000|2|
3|
|£80,001 – £90,000|2|
3|
|£90,001 – £100,000|2|
-|
|£110,001 – £120,000|-|
1|
|Total|14|
16|
Since July 2022, staff have been able to sacrifice up to 20% of their salaries into a defined contribution pension scheme. Total emoluments in this table are shown after any salary sacrifice.
**54** Independent Age
Annual Report and Accounts 2023 **55**
## 9. Tangible fixed assets (Charity and Group)
||||Fixtures,||
|---|---|---|---|---|
||Freehold|Plant and|Fittings and||
||Buildings|Machinery|Equipment|Totals|
|Tangible fixed assets (Charity and Group)|£’000|£’000|£’000|£’000|
|Cost|||||
|As at 1 January 2023|1,346|1,119|224|2,689|
|Additions|-|-|9|9|
|Total|1,346|1,119|233|2,698|
|Depreciation|||||
|As at 1 January 2023|213|469|203|885|
|Depreciation charge in the year|37|57|4|98|
|Total|250|526|207|983|
|Net book value|||||
|As at 31 December 2023|1,096|593|26|1,715|
|As at 31 December 2022|1,133|650|21|1,804|
## 10. Intangible fixed assets (Charity and Group)
## 11. Investment properties
|11. Investment properties|||
|---|---|---|
||2023|2022|
|Investment properties|£’000|£’000|
|As at 1 January|2,670|2,350|
|Additions|-|150|
|Revaluation|-|170|
|Transfer to Assets held for sale|(150)|-|
|As at 31 December|2,520|2,670|
||||
|Historic cost|1,332|1,482|
The investment properties were last independently valued as at 31 December 2014 by a combination of external surveyors, use of the Royal Institution of Chartered Surveyors Red Book or comparison to the market values of similar properties. The trustees are satisfied that, having reviewed recent available data on market activity in the respective locations, the investment properties are carried at fair value at the Balance Sheet date.
The transfer in the year to Assets held for sale relates to the charity’s share of a reversionary interest in a property, to which it became entitled following the death of the life tenant in December 2022. The charity has a reversionary interest in another property which it will acquire on the death of its resident, and its interest has not been valued.
||Computer||
|---|---|---|
||Software|Totals|
||£’000|£’000|
|Cost|||
|As at 1 January 2023|601|601|
|Additions|50|50|
|Disposals|-|-|
|Total|651|651|
|Amortisation|||
|As at 1 January 2023|594|594|
|Amortisation charge in the year|12|12|
|Total|606|606|
|Net book value|||
|As at 31 December 2023|45|45|
|As at 31 December 2022|7|7|
**56** Independent Age
Annual Report and Accounts 2023 **57**
## Notes to the Financial Statements
## 12. Investments (Charity and Group)
||Unrestricted|Restricted|Endowed|||
|---|---|---|---|---|---|
||funds|funds|funds|2023|2022|
||£’000|£’000|£’000|£’000|£’000|
|Quoted investments|72,971|4,083|50,013|127,067|
124,588|
|Quoted liquid funds|12,583|-|-|12,583|
14,597|
|Non-quoted investments|-|-|19,637|19,637|
19,967|
|Investments held with fund managers|85,554|4,083|69,650|159,287|
159,152|
|||||2023|2022|
|Reconciliation of investments held with fund managers||||£’000|£’000|
|Market value at 1 January||||159,152|
173,730|
|Additions||||30,041|
15,346|
|Disposals||||(30,041)|(15,346)|
|Net unrealised gains/(losses)||||7,636|
(9,549)|
|Movement in cash||||(7,501)|(5,029)|
|Market value at 31 December||||159,287|
159,152|
|||||||
|Historic cost at 31 December||||145,593|
145,060|
|||||2023|2022|
|Investments held with fund managers – analysis by type||||£’000|£’000|
|UK equities – FTSE 350||||14,919|
14,484|
|Global equities||||67,062|
65,275|
|Diversified growth funds||||23,624|
24,407|
|Infrastructure||||19,637|
19,967|
|Multi-asset credit funds||||21,462|
20,422|
|Quoted liquid funds||||12,583|
14,597|
|Total||||159,287|
159,152|
The charity has invested £1 in the share capital of its wholly owned trading subsidiary, Independent Age Enterprises Limited.
## 13. Concessionary loans (Charity and Group)
|13. Concessionary loans (Charity and Group)|||
|---|---|---|
||2023|2022|
|Concessionary loan|£’000|£’000|
|Loan balance as at 1 January|215|239|
|Loans repaid|(16)|(7)|
|Write backs/(impairment)|28|(17)|
|Total loans outstanding|227|215|
|Provision|(167)|(155)|
|Total|60|60|
These loans represent interest-free advances to qualifying individuals in furtherance of the charity’s objectives to assist with essential house repairs, and are repayable as the individual’s circumstances allow as described in Note 1. The practice of awarding such loans was ended in May 2014 and no further loans will be made.
## 14. Assets held for sale (Charity and Group)
|14. Assets held for sale (Charity and Group)|||
|---|---|---|
||2023|2022|
|Asstes for sale|£’000|£’000|
|As at 1 January|3,225|1,925|
|Transfer from investment properties|150|-|
|Revaluation|(10)|1,300|
|As at 31 December|3,365|3,225|
||||
|Historic cost|191|41|
The charity exchanged contracts for the sale of its land at Henfield in December 2022 at a price of £4.3m. Completion of the sale is subject to the buyer obtaining planning permission to develop the land for housing. The land is included in Horsham District Council’s Development Plan and has a notional allocation of 30 properties.
In the charity’s 2022 accounts the agreed sales price was discounted by 25% on the advice of advisers Daniel Watney LLP to reflect the risks to the sale completing. Daniel Watney LLP is registered with the Royal Institution of Chartered Surveyors (RICS).
During 2023 the buyers conducted various surveys and worked to address a number of issues including concerns about access to the site. All new developments in the area are required to be water neutral, and a reduction to the sales price of up to £0.3m was agreed in principle in early 2024 to enable the buyer to purchase water neutrality licenses and submit its planning application.
Following further consultation with Daniel Watney LLP, the valuation of the land has been maintained at £3.2m in 2023, taking into account the agreed price reduction whilst at the same time recognising the resolution of a number of issues which could have prevented the development going ahead. This valuation represents a discount of approximately 20% on the revised sales price of £4m.
The charity’s 50% share of a reversionary interest in a property has been transferred to Assets held for sale as the property was put on the market in March 2023. The charity’s share was revalued to £140,000 following acceptance of an offer of £280,000 for its sale in November 2023. The offer was withdrawn in April 2024 and the property was put back on the market.
**58** Independent Age
Annual Report and Accounts 2023 **59**
## Notes to the Financial Statements
## 15. Debtors: amounts falling due within one year
|15. Debtors: amounts falling|due within one year||||
|---|---|---|---|---|
||Group|Group|Charity|Charity|
||2023|2022|2023|2022|
||£’000|£’000|£’000|£’000|
|Trade debtors|3|9|3|9|
|Other debtors|62|89|76|98|
|Prepayments|241|257|241|257|
|Accrued income|1,623|1,017|1,618|1,017|
|Total|1,929|1,372|1,938|1,381|
The increase in accrued income is due to higher values of investment income accrued at the year end.
## 16. Creditors: amounts falling due within one year
||Group|Group|Charity|Charity|
|---|---|---|---|---|
||2023|2022|2023|2022|
||£’000|£’000|£’000|£’000|
|Trade creditors|355|542|355|540|
|Grants to individuals liability (annuitants) – see Note 17|503|579|503|579|
|Other creditors|1,013|1,308|1,012|1,308|
|Accruals|132|156|129|156|
|Total|2,003|2,585|1,999|2,583|
## 17. Provisions: amounts falling due after more than one year (Charity and Group)
|
(Charity and Group)|||
|---|---|---|
||2023|2022|
|Reconciliation of grants to individuals (annuitants)|£’000|£’000|
|Commitments at 1 January|4,021|5,281|
|Movement in provision|(708)|(1,417)|
|Unwinding of the discount|612|808|
|Amount paid in the year|(570)|(651)|
|Commitments at 31 December|3,355|4,021|
||||
|Payable within one year – see Note 16|503|579|
|Payable after one year|2,852|3,442|
|Commitments at 31 December|3,355|4,021|
## 18. Pension schemes
Independent Age operates a defined contributions pension scheme administered by TPT Retirement Solutions. The employer contributes up to 10% of employees’ earnings to the scheme and, for employees in the salary sacrifice scheme, additionally contributes its resulting employers’ national insurance saving to individual employees’ pensions. Total employer contributions towards this scheme in the year were £525,520 (2022: £453,008).
Independent Age also operates a defined benefit (final salary) scheme, which was closed to future accrual from the end of April 2021.
A full actuarial valuation was carried out at 30 September 2022 and updated to 31 December 2023 by a qualified actuary, independent of the scheme’s sponsoring employer. The major assumptions used by the actuary are shown below. The Scheme is in surplus at 31 December 2023. The surplus has been restricted to zero as it cannot be returned to the employer.
The most recent actuarial valuation at 30 September 2022 showed a surplus of £802,000.
||31 December|31 December|
|---|---|---|
|Present values of defined benefit asset/(obligation), fair value of assets|2023|2022|
|and defined benefit liability|£’000|£’000|
|Equity-type assets|12|2|
|Bonds|7,214|6,732|
|Property|1,764|2,076|
|Cash|643|1,140|
|Other|1,371|1,988|
|LDI|4,620|3,844|
|Liquid Alternatives|-|218|
|Private Credit|97|190|
|Total market value of assets|15,721|16,190|
|Present value of Scheme liabilities|(14,496)|(14,411)|
|Surplus|1,225|1,779|
|Effect of asset ceiling|(1,225)|(1,779)|
|Net pension asset under FRS 102|-|-|
None of the fair value of the assets shown above include any direct investments in the employer’s own financial instruments or any property occupied by, or any other assets used by, the employer.
The movement in the provision is derived from changes in the numbers of annuitants at the year end and changes in the mortality tables used to determine life expectancy.
At 31 December 2023 the number of annuitants was 704, which was 108 fewer than at the same date in the previous year (2022: 812). The discount factor decreased from 3.91% to 3.71%. Taking into account the movements in the factors above, there was a reduction in the overall liability and a negative expense for the year (see note 5).
Payments to annuitants due in less than one year have been accounted for as creditors rather than a provision as they are more certain.
**60** Independent Age
Annual Report and Accounts 2023 **61**
## Notes to the Financial Statements
## Note 18 continued
|Note 18 continued|||
|---|---|---|
||31 December|31 December|
||2023|2022|
|Reconciliation of opening and closing balances of the defined benefit obligation|£’000|£’000|
|Defined benefit obligation at start of period|14,411|21,850|
|Interest cost on defined benefit obligation|705|388|
|Benefits paid|(748)|(795)|
|Actuarial gain/(loss) on changes in demographic and financial assumptions|220|(8,681)|
|Experience (loss)/gain on liabilities|(92)|1,649|
|Defined benefit obligation at end of period|14,496|14,411|
||31 December|31 December|
||2023|2022|
|Reconciliation of opening and closing balances of the fair value of plan assets|£’000|£’000|
|Fair value of plan assets at start of period|16,190|25,115|
|Interest income on assets|793|447|
|Expenses|(119)|(78)|
|Return on assets excluding interest income|(467)|(8,571)|
|Employer contribution|72|72|
|Benefits paid|(748)|(795)|
|Fair value of plan assets at end of period|15,721|16,190|
||31 December|31 December|
||2023|2022|
|Movement in Balance Sheet asset during the year|£’000|£’000|
|Surplus in scheme at the beginning of the period|-|-|
|Expenses|(119)|(78)|
|Net interest credit|-|-|
|Re-measurements included in the Statement of Financial Activities|47|6|
|Employer contributions|72|72|
|Surplus in Scheme at the end of the period|-|-|
||31 December|31 December|
|---|---|---|
||2023|2022|
|Defined benefit costs recognised in the Statement of Financial Activities|£’000|£’000|
|Current service cost|-|-|
|Expenses|119|78|
|Operating charge|119|78|
||||
|Interest income on assets|(793)|(447)|
|Interest cost on defined benefit obligation|705|388|
|Interest on surplus that is not recoverable|88|59|
|Net Interest credit|-|-|
|Defined benefit costs recognised in Statement of Financial Activities|119|78|
## Note 18 continued
|Note 18 continued|||||||
|---|---|---|---|---|---|---|
|||31 December|31|December|||
|||2023||2022|||
|Other comprehensive income||£’000||£’000|||
|Return on assets excluding interest income||(467)||(8,571)|||
|Experience gain/(losses) on liabilities
(Loss)/gain from change of assumptions
Effects of changes in the amount of surplus that is not recoverable
(excluding amounts included in net interest cost)
Actuarial gain on defined benefit pension scheme in the Statement of Financial||92
(220)
642
Activities
47||(1,649)
8,681
1,545
6|Strategic report||
|||||Effect on|||
|Movement in assumption||||liabilities|||
|Discount rate + /- 0.1%||||- /+ 2%|||
|Inflation assumptions + /- 0.1%||||- /+ 2%|||
|Life expectancy + /- 1 year||||- /+ 3-5%|||
|||31 December|31|December|||
|Financial assumptions
Discount rate
Inflation (RPI)
Inflation (CPI)
Deferred revaluations
Pension increases in payment CPI max
Pension increases in payment CPI max
Pension increases in payment CPI max
Demographic assumptions|5% p.a.
2.5% p.a.
3% p.a.
31 December 2023|2023
4.77% p.a.
3.08% p.a.
2.64% p.a.
3.08% p.a.
2.61% p.a.
1.91% p.a
2.14% p.a.
31 December 2022||2022
5.02% p.a.
3.14% p.a.
2.83% p.a.
3.14% p.a.
2.77% p.a.
1.98% p.a
2.24% p.a.|Independent Auditor’s report||
|Mortality|||||||
|Base tables
Improvement allowance
Smoothing parameter
Life expectancy from age 65
Pensioners (currently aged 65)|Pre-retirement: nil
Post-retirement: 103% of S3PXA
CMI_2022 (1.25%) for females
CMI_2022 (1.5%) for males
7.0
Female: 23.9
Male: 21.6|Pre-retirement: nil
Post-retirement: 106% of S3PXA
CMI_2021 (1.00%) for females
CMI_2021 (1.25%) for males
7.5
Female: 23.8
Male: 21.7|||Financial statements||
|Non-pensioners (currently aged 45)|Female: 25.3|Female: 25.0|||||
||Male: 23.2|Male: 23.0|||||
|Commutation|75% of maximum allowance|75% of maximum allowance|||||
|Proportion married at retirement|75% for both females and males|75% for both females and males|||||
|Other demographic assumptions|As per most recent Technical Provisions
assumptions|
As per most recent Technical
assumptions|Provisions||adm|Leg|
## Contingent liability
Following a review by the Trustee of the Scheme of the changes they have made to The Pensions Trust’s Schemes’ benefits over the years, there is some uncertainty surrounding some of these changes. The Trustee has determined that it is prudent to follow best practice and seek clarification from the Court on the changes made. This process is ongoing, and the matter is unlikely to be resolved before 2025 at the earliest. It is recognised that this could potentially impact the value of Scheme liabilities but, as the Court direction is pending, it is not possible to calculate the impact with any accuracy at this time. Therefore, no adjustment has been made in these financial statements.
**62** Independent Age
Annual Report and Accounts 2023 **63**
## Notes to the Financial Statements
## 19. Movement on funds (Group and charity)
||Balance at|||||Balance at|
|---|---|---|---|---|---|---|
||1 January|Incoming|Resources||Gains|31 December|
||2023|resources|expended|Transfers|(losses)|2023|
||£’000|£’000|£’000|£’000|£’000|£’000|
|Endowed funds|||||||
|F E Cobbold Trust Fund|1,731|-|-|68|-|1,799|
|Backsettown Endowed Charity|338|-|-|13|-|351|
|Wharton & Wittrick Fund|1,200|-|-|-|-|1,200|
|General Endowment Fund|66,792|-|-|2,626|-|69,418|
|Unapplied Total Return|(6,892)|3,044|(88)|(2,707)|4,725|(1,918)|
|Total endowed funds|63,169|3,044|(88)|-|4,725|70,850|
|Restricted funds|||||||
|F E Cobbold Trust Fund|6,152|241|(2,480)|-|156|4,069|
|Backsettown Endowed Charity|3,225|-|-|-|-|3,225|
|Ulster Ladies Trust Fund|86|3|(77)|-|2|14|
|Pensions Insurance Corporation|500|-|(244)|-|-|256|
|(Helpline)|||||||
|Reconnections|38|40|(78)|-|-|-|
|Other Restricted Funds|104|340|(345)|-|-|99|
|Total restricted funds|10,105|624|(3,224)|-|158|7,663|
|Unrestricted funds|||||||
|Designated funds|||||||
|Investment Property Fund|1,470|-|-|(150)|-|1,320|
|Assets Held for Sale Fund|-|-|-|150|(10)|140|
|Tangible and Intangible Fixed|1,811|-|(113)|62|-|1,760|
|Assets Fund|||||||
|Endowment Funded Activity|24,100|224|(31)|1,107|(352)|25,048|
|Protection Fund|||||||
|Future Impact Fund|51,713|3,675|(9,070)|(2,022)|3,152|47,448|
|Universal Beneficent Society Fund|-|20|(20)|-|-|-|
|Total designated funds|79,094|3,919|(9,234)|(853)|2,790|75,716|
||||||||
|General Fund|11,435|-|-|853|-|12,288|
|Total unrestricted funds|90,529|3,919|(9,234)|-|2,790|88,004|
|Sub total Independent Age|163,803|7,587|(12,546)|-|7,673|166,517|
|Counsel and Care for the Elderly|||||||
|General Fund|3|5|(4)|-|-|4|
|Sub total Counsel and Care|3|5|(4)|-|-|4|
|for the Elderly|||||||
|Independent Age Enterprises Limited|||||||
|General Fund|3|17|(20)|-|-|-|
|Sub total Independent Age|3|17|(20)|-|-|-|
|Enterprises Limited|||||||
||||||||
|Total Group|163,809|7,609|(12,570)|-|7,673|166,521|
## Note 19 continued
## Fund descriptions
The Supplementary Royal Charter 2014 stipulated the establishment of a General Endowment Fund comprising all of the monies previously held in the Permanent Annuities Fund, the Provision of Homes Capital Fund, the Annuitants’ Relief Fund and part of the Life Annuities Fund.
The Charity Commission scheme, which became effective on 23 October 2014, defined the nature and purposes of the three endowed funds of which Independent Age is the Managing Trustee, namely F E Cobbold Trust Fund, Backsettown Endowed Charity Fund, and the Wharton and Wittrick Fund. The Scheme further provided for the merger of Homes of Rest for Gentlewomen and the Georgina Tompkins Ladies Fund into the RUKBA Holiday Fund, which is now fully spent; confirmation that both the capital and income of the Ulster Ladies Trust Fund could be expensed in accordance with its restrictions; and amended the restrictions on other named funds.
The funds of Independent Age are as described below.
## Permanent Endowed Funds
The F E Cobbold Trust Fund represents monies to be held on trust to invest and apply relief to older people in need by reason of ill-health, disability, financial hardship or other disadvantage, with preference to persons who are residents of Suffolk, by the provision of grants and other financial assistance and the provision of advice and support.
The Backsettown Endowed Charity Fund is to relieve persons who are in conditions of need, hardship or distress or who, by reason of physical or mental illness or otherwise, are in need of rest and recuperation by making of grants or the provision of facilities that are calculated to relieve such need.
The Wharton & Wittrick Fund is to be held on trust to invest and apply the income to relief older people in need by reason of ill-health, disability, financial hardship or other disadvantage, with preference to persons who have been employed with the health and social care professions, by the provision of grants and other assistance relating to accommodation.
The General Endowment Fund, which was established by the Supplementary Royal Charter in 2014, provides for the general purposes of the charity.
The Unapplied Total Return is the balance of income earned, less investment management fees, less investment losses after the maintenance of the capital value of the Permanent Endowed Funds calculated by the movement in CPI for the respective period.
Under section 104(A) of the Charities Act 2011 on 1 January 2015, the trustees have the power to invest permanently endowed funds to maximise total return and therefore to apply an appropriate portion of the Unapplied Total Return to income. The Unapplied Total Return remains invested as part of the permanent endowment until that power is exercised.
Group General Funds comprise the General Funds of the Charity and its two subsidiaries.
**64** Independent Age
Annual Report and Accounts 2023 **65**
## Notes to the Financial Statements
## Note 19 continued
|Note 19 continued||||
|---|---|---|---|
||Endowed for|Unapplied|Total|
||investment|Total Return|endowed|
|Movement on endowed funds|£’000|£’000|£’000|
|At start date: 1 January 2023||||
|Gift component of permanent endowment|70,061|-|70,061|
|Unapplied Total Return|-|(6,892)|(6,892)|
|Sub total|70,061|(6,892)|63,169|
|Movements||||
|Recoupment of trust for investment*|2,707|(2,707)|-|
|Dividend return|-|3,044|3,044|
|Gains|-|4,725|4,725|
|Investment management costs|-|(88)|(88)|
|Sub total|2,707|4,974|7,681|
|Unapplied total return retained|-|-|-|
|Unapplied total return transferred to income funds|-|-|-|
|Total|72,768|(1,918)|70,850|
The Future Impact Fund represents the balance of unrestricted reserves that, together with growth of voluntary income, will be used to continue to expand the scale, scope and depth of charity services now and in the future. Now that the charity’s strategy has been finalised, the timescale over which this will be spent is being determined through work taking place during 2024. Transfers are made annually between general funds and designated funds to maintain designated funds at the levels specified by trustees as set out above.
The Universal Beneficent Society Fund relates to legacy income due to this charity which merged with Independent Age in 2011. As its purposes are wider than those of Independent Age the funds have been designated rather than restricted, and they were spent in full during the year.
## General funds
The General Fund represents free reserves used for the general work of Independent Age. Transfers between funds are made in order to maintain the value of the endowed funds such that they grow each year in line with CPI, maintain the value of the Endowment Funded Activity Protection Fund at 35% of the endowed investments, maintain the General Fund at an amount equivalent to one year’s unrestricted expenditure and transfer any remaining balances, including on the Unapplied Total Return Fund, to the Future Impact Fund. Comparatives for 2022 of movement on funds are shown on the next page.
*This represents the sum elected to offset the impact of inflation.
## Restricted funds
These are funds that the charity must spend on activities specified by the restrictions of the fund.
The Ulster Ladies Trust Fund: the income and capital may be applied for the relief of persons in need by reason of ill-health, disability, financial hardship or other disadvantage with a preference for those living or formerly living in Northern Ireland.
Pensions Insurance Corporation (Helpline): The Pensions Insurance Corporation has provided funding to support our Helpline in 2023 and 2024.
Reconnections: We received further income to support the reconnections service, which closed during the year.
Other Restricted Funds represent donations and grants on which a restriction is placed by the donor, predominantly for the Helpline. In 2023, this amounted to £340k, (2022: £308k).
## Designated funds
In accordance with the Charity Commission guidance, the trustees have designated funds to mitigate the charity’s financial risks and to indicate which reserves are held in property and therefore not available as ‘free’ reserves. Individual purposes of these funds are described below.
The Investment Property and Assets Held For Sale Funds represent the amount of reserves relating to investment properties not held in restricted and endowed funds.
The Tangible and Intangible Fixed Asset Fund recognises the net book value of operational fixed assets, primarily the head office building at 18 Avonmore Road.
The Endowment Funded Activity Protection Fund will be used to cover a gap in funding of charitable activities arising from a potential negative return on the endowed investment. Trustees have designated for this purpose a value equivalent to 35% of the endowments other than those held as property and not including any balance on the Unapplied Total Return.
**66** Independent Age
Annual Report and Accounts 2023 **67**
## Notes to the Financial Statements
## Note 19 continued
|Note 19 continued|||||||
|---|---|---|---|---|---|---|
||Balance at|||||Balance at 31|
||1 January|Incoming|Resources||Gains|December|
||2022|resources|expended|Transfers|(losses)|2022|
||£’000|£’000|£’000|£’000|£’000|£’000|
|Endowed funds|||||||
|F E Cobbold Trust Fund|1,566|-|-|165|-|1,731|
|Backsettown Endowed Charity|306|-|-|32|-|338|
|Wharton & Wittrick Fund|1,030|-|-|-|170|1,200|
|General Endowment Fund|60,440|-|-|6,352|-|66,792|
|Unapplied Total Return|-|2,425|(93)|(6,549)|(2,675)|(6,892)|
|Total endowed funds|63,342|2,425|(93)|-|(2,505)|63,169|
|Restricted funds|||||||
|F E Cobbold Trust Fund|9,785|105|(2,265)|-|(1,473)|6,152|
|Backsettown Endowed Charity|1,925|-|-|-|1,300|3,225|
|Ulster Ladies Trust Fund|269|3|(146)|-|(40)|86|
|Pensions Insurance Corporation (Grants)|-|1,000|(1,000)|-|-|-|
|Pensions Insurance Corporation (Helpline)|-|500|-|-|-|500|
|Reconnections|12|130|(104)|-|-|38|
|Other Restricted Funds|139|308|(343)|-|-|104|
|Total restricted funds|12,130|2,046|(3,858)|-|(213)|10,105|
|Unrestricted funds|||||||
|Designated funds|||||||
|Investment Property Fund|1,320|150|-|-|-|1,470|
|Tangible and Intangible Fixed Assets Fund|1,907|-|(117)|21|-|1,811|
|Endowment Funded Activity Protection|21,809|-|(33)|4,465|(2,141)|24,100|
|Fund|||||||
|Future Impact Fund|67,174|3,162|(9,264)|(6,139)|(3,220)|51,713|
|Total designated funds|92,210|3,312|(9,414)|(1,653)|(5,361)|79,094|
|General Fund|9,782|-|-|1,653|-|11,435|
|Total unrestricted funds|101,992|3,312|(9,414)|-|(5,361)|90,529|
|Sub total Independent Age|177,464|7,783|(13,365)|-|(8,079)|163,803|
|Counsel and Care for the Elderly|||||||
|General fund|17|6|(20)|-|-|3|
|Sub total Counsel and Care for the Elderly|17|6|(20)|-|-|3|
|Total Group|166,169|7,346|(12,469)|-|16,435|177,481|
|Independent Age Enterprises Limited|||||||
|General Fund|-|5|(2)|-|-|3|
|Sub total Independent Age Enterprises|-|5|(2)|-|-|3|
|Limited|||||||
|Total Group|177,481|7,794|(13,387)|-|(8,079)|163,809|
## 20. Analysis of net assets between funds
||Unrestricted|Designated|Restricted|Endowed|2023|
|---|---|---|---|---|---|
||funds|funds|funds|funds|Total funds|
||£’000|£’000|£’000|£’000|£’000|
|Tangible and intangible fixed assets|-|1,760|-|-|1,760|
|Investment|13,058|72,496|4,083|69,650|159,287|
|Investment properties|-|1,320|-|1,200|2,520|
|Concessionary loans|60|-|-|-|60|
|Current assets|4,029|140|3,580|-|7,749|
|Current liabilities|(2,003)|-|-|-|(2,003)|
|Provisions: amounts falling due after one year|(2,852)|-|-|-|(2,852)|
|Total|12,292|75,716|7,663|70,850|166,521|
Comparatives for 2022 analysis of net assets between funds are shown below:
||Unrestricted|Designated|Restricted|Endowed|2022|
|---|---|---|---|---|---|
||funds|funds|funds|funds|Total funds|
||£’000|£’000|£’000|£’000|£’000|
|Tangible and intangible fixed assets|-|1,811|-|-|1,811|
|Investment|15,132|75,813|6,238|61,969|159,152|
|Investment properties|-|1,470|-|1,200|2,670|
|Concessionary loans|60|-|-|-|60|
|Current assets|2,276|-|3,867|-|6,143|
|Current liabilities|(2,585)|-|-|-|(2,585)|
|Provisions: amounts falling due after one year|(3,442)|-|-|-|(3,442)|
|Total|11,441|79,094|10,105|63,169|163,809|
## 21. Trustees, related parties and connected charities
No Trustee received any remuneration from Independent Age during the year ended 31 December 2023, (2022: none). Four trustees (2022: three) were reimbursed for travel expenses incurred in furtherance of the charity’s activities totalling £3,178 (2022: £1,848).
Counsel and Care for the Elderly merged with Independent Age in October 2011 but continues to operate as a separate charitable company for the collection of donations and legacies, with three trustees of Independent Age serving as its trustees and company directors. Independent Age continues to provide the services previously offered by Counsel and Care. In the year ended 31 December 2023, the income for Counsel and Care was £5k (2022: £6k) and expenditure was £4k (2022: £20k), and total net assets value was £4k (2022: £3k).
Independent Age Enterprises Limited (IAE Ltd), the subsidiary company, handles the non-charitable activities. IAE Ltd donated its 2022 profits to Independent Age during 2023. A deed of covenant was entered into during the year between the charity and IAE Ltd and the donation of IAE’s 2023 profits has been recognised in both the charity and IAE Ltd’s 2023 accounts. In the year ended 31 December 2023, the income for IAE Ltd was £17k (2022: £5k) and expenditure was £20k (2022: £2k), and total net assets value was £Nil (2022: £3k).
The Universal Beneficent Society merged with Independent Age in 2011. Independent Age is the corporate trustee. The trustees of Independent Age are considering the future of this charity.
Baroness Julia Neuberger, DBE, trustee at the Rayne Foundation, is Chair of Independent Age. Independent Age received a £Nil Gifts in Kind donation from the Rayne Foundation in 2023 (2022: £575).
**68** Independent Age
Annual Report and Accounts 2023 **69**
## Notes to the Financial Statements
## 22. Reconciliation of net movements in funds to net cash flow from activities
||2023|2022|2023|2022|
|---|---|---|---|---|
||Group|Group|Charity|Charity|
||£’000|£’000|£’000|£’000|
|Net income/(expenditure) for the year|2,665|(13,672)|2,667|(13,661)|
|Dividends received|(5,248)|(3,655)|(5,248)|(3,655)|
|Interest receivable including bank interest|(26)|(5)|(26)|(5)|
|Rents received from investment properties|(37)|(42)|(37)|(42)|
|Depreciation and impairment of tangible fixed assets|98|84|98|84|
|Amortisation and impairment of intangible fixed assets|12|17|12|17|
|Revaluation of investment property|-|(170)|-|(170)|
|Revaluation of asset held for sale|10|(1,300)|10|(1,300)|
|Investment property addition|-|(150)|-|(150)|
|(Gains)/losses on investments|(7,636)|9,549|(7,636)|9,549|
|Movement in the provision for concessionary loans|(16)|(5)|(16)|(5)|
|Movement in the provision for annuitants|(666)|(1,260)|(666)|(1,260)|
|Re-measurement of defined benefit pension|47|-|47|-|
|(Increase) in debtors|(557)|(405)|(557)|(339)|
|(Decrease)/increase in creditors|(506)|835|(508)|839|
|Independent Age Enterprises Ltd|-|9|-|-|
|Net cash flow from operating activities|(11,860)|(10,170)|(11,860)|(10,098)|
## 23. 2022 Consolidated Statement of Financial Activities
|||||Year to|
|---|---|---|---|---|
|||||31 December|
||Unrestricted|Restricted|Endowed|2022|
||funds|funds|funds|Total funds|
||£’000|£’000|£’000|£’000|
|Income and endowments from|||||
|Donations and legacies|1,970|1,938|-|3,908|
|Other trading activities|164|-|-|164|
|Investment income|1,169|108|2,425|3,702|
|Other income|20|-|-|20|
|Total Income and endowments|3,323|2,046|2,425|7,794|
|Expenditure on raising funds|||||
|Raising voluntary income|1,748|1|-|1,749|
|Investment and property management|296|15|93|404|
|Total cost of raising funds|2,044|16|93|2,153|
|Expenditure on charitable activities|||||
|National Services|1,966|2,629|-|4,595|
|Community Services|1,997|213|-|2,210|
|Policy and Influencing|2,433|-|-|2,433|
|Grant Making|996|1,000|-|1,996|
|Total cost of charitable activities|7,392|3,842|-|11,234|
||||||
|Total expenditure|9,436|3,858|93|13,387|
||||||
|Operating (deficit)/surplus|(6,113)|(1,812)|2,332|(5,593)|
|(Losses) on investment assets|(5,361)|(213)|(2,505)|(8,079)|
|Net (expenditure)/income|(11,474)|(2,025)|(173)|(13,672)|
|Other recognised (losses)/gains|||||
|Re-measurement of defined benefit pension|-|-|-|-|
|Net movement in funds|(11,474)|(2,025)|(173)|(13,672)|
|Reconciliation of funds|||||
|Fund balances brought forward at 1 January|102,009|12,130|63,342|177,481|
|Fund balances carried forward at 31 December|90,535|10,105|63,169|163,809|
**70** Independent Age
Annual Report and Accounts 2023 **71**
## Notes to the Financial Statements
## 24. Operating lease commitments
The Group had no outstanding commitments at the year-end under operating leases (2022: £nil).
## 25. Charity-only Statement of Financial Activities for the year ended 31 December 2023
## Legal and administrative details
|
31 December 2023||||||
|---|---|---|---|---|---|
|||||Year to|Year to|
|||||31 December|31 December|
||Unrestricted|Restricted|Endowed|2023|2022|
||funds|funds|funds|Total funds|Total funds|
||£’000|£’000|£’000|£’000|£’000|
|Income and endowments from||||||
|Donations and legacies|1,798|380|-|2,178|3,918|
|Other trading activities|118|-|-|118|159|
|Investment income|2,023|244|3,044|5,311|3,702|
|Other income|-|-|-|-|20|
|Total income and endowments|3,939|624|3,044|7,607|7,799|
|Expenditure on raising funds||||||
|Raising voluntary income|1,388|-|-|1,388|1,747|
|Investment and Property Management|220|8|88|316|404|
|Total cost of raising funds|1,608|8|88|1,704|2,151|
|Expenditure on charitable activities||||||
|National services|2,004|2,975|-|4,979|4,591|
|Community services|1,277|197|-|1,474|2,210|
|Policy and influencing|2,516|-|-|2,516|2,433|
|Grant-making|1,849|44|-|1,893|1,996|
|Total cost of charitable activities|7,646|3,216|-|10,862|11,230|
|Total expenditure|9,254|3,224|88|12,566|13,381|
|Operating (deficit)/surplus|(5,315)|(2,600)|2,956|(4,959)|(5,582)|
|Gains/(losses) on investment assets|2,743|158|4,725|7,626|(8,079)|
|Net income/(expenditure)|(2,572)|(2,442)|7,681|2,667|(13,661)|
|Other recognised gains/(losses)||||||
|Re-measurement of the defined benefit pension|47|-|-|47|-|
|scheme||||||
|Net movement in funds|(2,525)|(2,442)|7,681|2,714|(13,661)|
|Reconciliation of funds||||||
|Fund balances brought forward at 1 January|90,529|10,105|63,169|163,803|177,464|
|Fund balances carried forward at 31 December|88,004|7,663|70,850|166,517|163,803|
All the above results are derived from continuing activities. There are no other recognised gains or losses other than those stated above. Notes 1 to 25 form part of the financial statements.
The rent used to be £675 and for the past couple of months [the landlord]’s asked for £900.
Susan, Romford
**72** Independent Age
Annual Report and Accounts 2023 **73**
## Legal and administrative details
The Trustees’ Committee
## Charity information
Membership during the year
Independent Age is the operating name of the Royal United Kingdom Beneficent Association (RUKBA).
1. Finance and Resources Committee
2. Investment Subcommittee
3. Services and Policy Committee
It is registered in England and Wales with the Charity Commission under charity number 210729 and was entered on the Scottish Charity Register under charity number SC047184 on 17 February 2017.
4. Governance and Nominations Committee
5. Engagement Committee
## Royal Patron
on 17 February 2017. Her Royal Highness Princess Alexandra, the Hon Lady Ogilvy, Trustees KG, GCVO
Richard Anderson (5) Lucy Blythe (4,5) Karen Byrne (5) Karl Demian (3) – until 7 November 2023 Vivienne Dews (1,2,3,4) – until 11 June 2024 Guillermo Donadini (1,2) Jannine Edgar (1) – from 21 January 2023
## Senior Leadership Team
Joanna Elson, CBE, Chief Executive Officer, from September 2023
John Palmer, Director of Policy and Communications to July 2023, Director of Influencing & Engagement from July 2023
Stuart Rogers, Director of Corporate Services & Acting CEO until September 2023, Chief Operating Officer from September 2023
Joan Elliott (1,2) – from 20 January 2023, Treasurer from 26 July 2023
Prof Caroline Glendinning (3)
Kelly Rust, Interim Director of Services to October 2023
John Hannaford (1,2) – Treasurer – until 26 July 2023
Simon Inchley (3) – until 26 July 2023
Clare Wadd, Director of Finance and Governance
Baroness Julia Neuberger, DBE (4) – Chair
Matthew Wilkley, Director of Income Generation, to July 2023
Amit Patel (2,3)
Letizia Perna (3) – from 20 January 2023
## Professional advisers
Auditors
RSM UK Audit LLP 6th Floor
25 Farringdon Street London EC4A 4AB
Principal bankers NatWest Bank plc 156 Fleet Street London EC4A 2DX
## Insurance broker
Scrutton Bland LLP 820 The Crescent Colchester Business Park Colchester Essex CO4 9YQ
## Solicitors
Bates Wells & Braithwaite London LLP 10 Queen Street Place London EC4R 1BE
## Investment advisers
Lane Clark & Peacock LLP 95 Wigmore Street London W1U 1DQ
## Investment managers
BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue Drapers Gardens London EC2N 2DL
JP Morgan Institutional Investments Inc 270 Park Avenue New York NY 10017
US
Legal & General Investment 2020 Mr R Anderson Management Limited 2003 Mr U D Barnett One Coleman Street 2020 Ms L Blythe London EC2R 5AA 2019 Ms K Byrne Lindsell Train Ltd 2009 Mr P Cann 66 Buckingham Gate 2008 Ms S Collins London SW1E 6AU 2012 Ms M Dangoor M&G Securities Limited 2016 Ms V Dews Laurence Pountney Hill 2022 Mr G Donadini London EC4R 0HH 2023 Ms J Edgar Ruffer LLP 2023 Ms J Elliott 80 Victoria Street London 2022 Prof C Glendinning SW1E 5JL 2006 Mr T J Howe 2005 Mrs F C Hughes Vanguard Asset Management Limited 2008 Mr R Humphries 25 Walbrook 1986 Mrs I Macdonald London EC4N 8AF 2010 Baroness Neuberger, DBE Charter Members 2019 Mr A Patel at annual report 2012 Mr G Patterson signing date 2023 Ms L Perna Charter Members are appointed 1985 Mr P G Pollock when an application, which may 2004 Mr H M Priestley have been invited by the trustees, 2013 Ms L Romeo has been approved by the trustees. Trustees are appointed 1985 Mr J G Tregoning Charter Members for the period of their trusteeship only.
At each annual general meeting, the Charter Members shall resolve on the appointment or reappointment of trustees who have been nominated by the trustees, and the appointment of the auditors.
Independent Age 18 Avonmore Road London W14 8RR
charity@independentage.org independentage.org Helpline 0800 319 6789
© 2024 Independent Age
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Independent Age is the operating name of the Royal United Kingdom Beneficent Association. Registered charity number 210729 (England and Wales) SC047184 (Scotland).