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2025-03-31-accounts

THE SALVATION ARMY UNITED KINGDOM AND IRELAND TERRITORY

THE SALVATION ARMY SOCIAL WORK TRUST REPORT AND FINANCIAL STATEMENTS FOR THE UNITED KINGDOM IN THE YEAR ENDED 31 MARCH 2025

CHARITY REGISTRATION NO: 215174 SCOTTISH CHARITY REGISTRATION NO: SC037691

Principal Office

Territorial Headquarters: 1 Champion Park, London, SE5 8FJ

www.salvationarmy.org.uk

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CONTENTS
INTRODUCTION FROM THETERRITORIALLEADERS 3
THE OBJECTS OF THE SALVATION ARMY SOCIAL WORK TRUST 4
OUR VISION, MISSION AND VALUES 4
EXPLAINING OUR STRATEGY, STRUCTURE AND OPERATION 7
OUR ORGANISATION 7
SUMMARY OF WHAT THE SALVATION ARMY SOCIAL WORK TRUST DOES 8
THE SCALE OF THE WORK OF THE SALVATION ARMY SOCIAL WORK TRUST IN THE UK 8
HOW WE WORK 11
ILLUSTRATING THE WORK AND ACHIEVEMENTS OF THE SALVATION ARMY SOCIAL WORK TRUST 2024/2025 12
ANTI-TRAFFICKING AND MODERN SLAVERY 12
HELPING PEOPLE EXPERIENCING HOMELESSNESS 17
REUNITING FAMILIES – TRACING SERVICE 24
INCLUSION FOR PEOPLE WITH A DISABILITY 25
THOUGHTFUL FRIEND TO OLDER PEOPLE 29
UNDERSTANDING AND SUPPORTING ADDICTION 30
LOOKING FORWARD WITH AMBITION AND COMMITMENT 32
RAISING FUNDS 33
SUBSIDIARIES 35
MODERN SLAVERY AND ANTI-HUMAN TRAFFICKING STATEMENT 36
STREAMLINED ENERGY AND CARBON REPORTING (SECR) STATEMENT 36
REVIEWING FINANCES 40
RESERVES POLICY 42
INVESTING FOR THE FUTURE 43
STRUCTURE, GOVERNANCE AND MANAGEMENT 45
RISK MANAGEMENT 46
RECRUITMENT AND APPOINTMENT OF DIRECTORS 47
DIRECTORS 50
ADVISERS 51
INDEPENDENT AUDITORS REPORT 52
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 56
BALANCE SHEETS 57
CONSOLIDATED STATEMENT OF CASH FLOWS 58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 59

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INTRODUCTION FROM THE TERRITORIAL LEADERS Commissioner Paul Main and Commissioner Jenine Main

As Territorial Leaders of The Salvation Army in the United Kingdom and Ireland, it is with immense gratitude that we introduce this Annual Report and Accounts for the Salvation Army Social Work Trust for 2024/25. Over the year we had the wonderful and humbling privilege of journeying right across the territory and witnessing first-hand the grace of God in action in communities throughout the United Kingdom, Ireland, the Channel Islands and the Isle of Man. Our hope and our prayer is that as you read this report you will experience the same sense we have had of a transformational movement making a real difference at the heart of so many of our communities.

Since we took up leadership of the Territory, we have been drawn to the early chapters in the Old Testament book of Joshua. There, we find an emphasis on the importance of courage, strategic planning, personal responsibility and commitment. These qualities we have discovered in abundance amongst our officers, employees, members and partners who every day selflessly minister, serve and lead in their communities. We have been greatly moved by some of the stories they have told us, many of which are narrated for you in this report. These are stories of hope and transformation, of people supported to overcome personal challenges and difficult circumstances often not of their own making. We guarantee that as you read them you will find plenty of inspiration drawn directly from the lives of ordinary people in ordinary neighbourhoods right across the land.

We have also become aware of the increasing social challenges evident in many of our towns and cities. As the cost of living has soared, so have the number of people presenting themselves to us in need of assistance. Whilst this has put great strain not just upon our local churches but also our centralised contracted services which are the focus of this Report and Accounts, we have been delighted to see the creativity and resourcefulness of our personnel, seeking new ways to serve without discrimination. New partnerships have been forged to face the rising tide of increased poverty, and together with a deeper integration of our varied services, we have, with God’s help, been able to rise to the challenge. We are also incredibly grateful for the many people who have shown extraordinary generosity towards our work, financially supporting us despite challenging economic times. We pride ourselves in ensuring that every donation, big or small, is put to good use and offer here a sincere and heartfelt ‘thank you’ – we could not do what we do without your support.

As we reflect on the last year, we looked back and gave thanks to God for his faithfulness, and for walking with us every step of the way. This has given us a sustaining hope for the future. May you have your own glimpse of this hope as you read on.

Thank you for your help and support, and may God bless you.

Commissioner Paul Main

Territorial Commander of The Salvation Army in the United Kingdom and Ireland

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THE OBJECTS OF THE SALVATION ARMY SOCIAL WORK TRUST

Promoting the charitable work of The Salvation Army in such one or more of the following ways as The Salvation Army Trustee Company shall think fit, namely:

OUR VISION, MISSION AND VALUES

Our Vision, Our Values and our five Mission Priorities inspire and guide all the work we do as a church and as a charity.

Whilst The Salvation Army operates through two main charitable trust registrations, (see below, page 7) we have one unifying vision statement and mission priorities and values that guide us in all we do.

Our Vision, Mission and Values statements powerfully communicate our sense of purpose and direction for The Salvation Army in the United Kingdom, Ireland, the Channel Islands and the Isle of Man. The aim is that every expression of The Salvation Army, our corps (churches) and community centres and residential centres all seek to deliver the same five mission priorities to strive to deliver the one overall Vision Statement. Their simplicity and boldness mean that all areas of the diverse work of The Salvation Army can be both anchored and inspired by them.

Our Vision Statement:

This is ‘Our Vision’ for every part of The Salvation Army. It is inspired by the words of Jesus : ‘I have come that they may have life, and have it to the full’ (John 10:10 NIV ).

No words can adequately capture the vision of boundless salvation that God intends for the world and everything in it. However, ‘Fullness of life for all with Jesus’ includes every aspect of Salvation Army life. We believe everyone can enjoy fullness of life with Jesus. It is aspirational – we are not there yet – but this is what we strive towards.

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Our Five Mission Priorities:

Our Mission is built on five priorities which are the drivers for all we do, how we do it and why we do it, across the entire organisation.

These short phrases communicate immense challenge, ambition and direction. When these priorities are present, The Salvation Army is working towards our vision of ‘Fullness of life for all with Jesus’.

Each of the five priorities of Our Mission is rich in meaning and helps us explain to 21st-century society why the Christian message and the work of The Salvation Army is relevant and desperately needed in our communities and nations.

They are not arranged hierarchically but overlap and mutually support each other.

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good life. Peace and fullness of life is possible when justice and reconciliation are priorities in the lives of individuals, communities and nations. The Salvation Army is committed to work in partnership for these ends.

Our Values

Our Values are for everyone involved in The Salvation Army and should be reflected in our behaviour and result in good relationships and increased wellbeing and help us integrate what we do with how we do it.

The basic standard of Christian behaviour, derived from our understanding of the character and action of God, is love, so we need continually to be drawn back to understand how God is asking us to live and work together to help us be faithful to our calling to be God’s people.

Our Statement of Commitment:

We have one simple statement to explain why we are here, which frames all we are and all we do as a church and charity. Four words achieve this:

‘Love God, Love Others’

This is based on Jesus’ greatest commandment in Matthew 22:37–39 to ‘Love the Lord your God’ and to ‘love your neighbour as yourself’. ‘Love God, Love Others’ underpins, inspires and motivates everything we do, in every part of The Salvation Army. It is a powerfully simple ‘explainer’ of what we are here to do and how we strive to deliver our vision.

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EXPLAINING OUR STRATEGY, STRUCTURE AND OPERATION

Our two principal charitable registrations:

The Salvation Army operates through two principal charitable trusts: The Salvation Army Social Work Trust (this report) and The Salvation Army Trust.

This Report and Accounts outlines the work of The Salvation Army Social Work Trust (Charity Registration number 215174) , which is the charity registration through which we manage our extensive residential and regulated programmes for people experiencing homelessness our care homes for older people, residential detox centres, family centres, refuges for victims of domestic violence, safe houses and services for the victims and survivors of modern slavery and human trafficking, and our Employment Plus services. Some of these services, whist centrally regulated, are run at corps (church) and community centres and complement the other locally based services, for example, employment programmes. The consolidated accounts also include Salvation Army Homes (SAH), Kingsown Limited and SAH Development Limited which are subsidiaries of The Salvation Army Trust.

These services are managed in a top-down model due to the vulnerability of the people needing help and because of statutory regulations and contract requirements. Much of the funding for The Salvation Army Social Work Trust derives from government and local authority contracts and substantial, additional funding comes from The Salvation Army Trust.

The work of The Salvation Army Social Work Trust does not represent the entirety of The Salvation Army’s work in the UK. Alongside our centrally managed and coordinated services which this report covers, we run extensive programmes of engagement and support which are delivered through our 589 local corps (churches) and our community centres. Much of the funding for the work of The Salvation Army Trust derives from public donations, legacies, trading activities and church members. Whilst this is still the ‘work’ of The Salvation Army, the finances of these locally based operations are managed and reported on through a separate charity registration, The Salvation Army Trust (Charity Registration number 214779) which has its own Report and Accounts and form a ‘sister’ publication to this one.

Together both Trusts reflect the life and work of The Salvation Army as a whole and exist to enable effective management and accountability for the two main ways in which we work.

Our organisation

The Salvation Army was founded in 1865 by William and Catherine Booth and currently operates in 134 countries. The world leadership of The Salvation Army is provided by The General of The Salvation Army.

The General is assisted by officers and staff based at International Headquarters in London. The current General is Lyndon Buckingham who was elected in May 2023.

The United Kingdom and Ireland Territory is under the command of a Territorial Commander, appointed by The General and responsible to him/her for the day-to-day administration of Salvation Army work throughout the British Isles, including the Channel Islands, the Isle of Man and the Republic of Ireland. Commissioners Paul and Jenine Main are the leaders of The Salvation Army in the UK and Republic of Ireland, having been appointed in January 2024.

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Summary of what The Salvation Army Social Work Trust does

The scale of the work of The Salvation Army Social Work Trust in the UK

12 Care Homes for Older People

Belfast: Sir Samuel Kelly Care Home (accommodation 56) Buxton: The Hawthorns (acc 27) Coventry: Youell Court (acc 40) Edinburgh: Davidson House (acc 40), Eagle Lodge (acc 35) Hassocks: Villa Adastra (acc 40) London: Glebe Court, Lewisham (acc 36) North Walsham: Furze Hill House (acc 40) Prestwich: Holt House (acc 31) Sandridge: Lyndon (acc 32) Southend-On-Sea: Bradbury Home (acc 34) – closed Dec 2024 Weston-super-Mare: Dewdown House (acc 40)

9 Centres for Families (Residential)

Belfast: Glen Alva (acc family units 20, max 77 residents) Belfast: Grosvenor House (acc family units 19, max 76 residents) Belfast: Thorndale Parenting Assessment (3 family units)

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Belfast: Thorndale Family Centre (family units 31, single bedrooms 4, max 125 residents) Fleetwood: George Williams House (acc family units 9, max 36 residents) Milton Keynes: Springfield House (acc 16 flats) Portsmouth: Catherine Booth House (acc family units 21, max 40 residents) Portsmouth: St Paul’s House (acc family units 21, max 84 residents) Portsmouth: St Monica’s House (acc family units 10, max 40 residents)

2 Centres for People with Learning Disabilities

Kilbirnie: George Steven Community Hub Liverpool: Strawberry Field Centre for Employment and Training Hadleigh: Hadleigh Farm Estate

5 Centres for Single Homeless Young People

Cardiff: Northlands (acc 26) Cardiff: Ty Diogel (accom 8), Age Assessment House (accom 6), Fleetwood: George Williams House (acc 6) London: Springfield Lodge (acc 40) London: Greig House, Tower Hamlets (accom 20)

5 Homelessness Day Care / Drop-In

Bradford: Day Centre Edinburgh: Niddry Street London: No 10 Project Norwich: Pottergate Arc Coventry: STEPS

4 Housing First Programmes

Cardiff Glasgow South Lanarkshire Merthyr Tydfil

11 Non-Residential Homelessness Services

Aberdeenshire Floating Support Cardiff Floating Support and outreach services Early Intervention Project – York Inverness Floating Support Greenock Floating Support Glasgow WAY-Finder Outreach Service Southwark Floating Support North West Refugee Floating Support Denbighshire floating support Booth House Swindon - Floating Support Newport Outreach Support Service

43 Centres for Single Homeless (Adults)

Belfast: Centenary House (acc 88) and Calder Fountain (acc 12) Blackburn: Bramwell House (acc 55) Bradford: The Orchard (acc 42) Braintree: New Direction Centre (acc 14)

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Bristol: Logos House (acc 83)
Cardiff: Tŷ Gobaith (acc 70)
Coventry: Harnall (acc 85), Axholme House (acc 32)
Denbighshire multi occupancy housing support – 1 current house with 6 bedrooms and another 4
coming on in the coming year. Total capacity of citizens across the 5
properties (including 35 River Street) is 81.
Dundee: Strathmore Lodge (acc 25), Burnside Mill (acc 20)
Edinburgh: The Pleasance (acc 38), East Adam Street (acc 8)
Cambuslang: Eva Burrows 1st Stop Project (acc 32),
Glasgow: Huntershill Court (acc 14), Wallace of Campsie House (acc 52), William Hunter
House (acc 37)
Grimsby: The Booth Lifehouse (acc 35)
Hamilton: Support Service (acc 150)
Huntingdon: Kings Ripton Court (acc 36)
Ipswich: Lyndon House (acc 38)
Liverpool: Ann Fowler House (acc 38), Darbyshire House (acc 45)
London: Cambria House (acc 48), Founders House (acc 123), Riverside Complex (acc
60), St Ann’s – NHS (Acc 5 & Working beds 4)
Manchester: Discovery House (acc 10), Endeavour House (acc 15), Independence House
(acc 15)
Perth: Skinnergate (acc 30)
Plymouth: Devonport House (accom 60), Zion House 12 flats
Reading: Shepton House (acc 16), Willow House (acc 38)
Ryde, IOW: Fellowship House (acc 26), Melville Street (acc 7), Carisbrooke Priory (acc 14)
St Helens: Salisbury House (acc 64)
Sheffield: Charter Row (acc 55), Lincoln Court (acc 11 self-contained units)
Skegness: Witham Lodge (acc 28), Rookery Nook (acc 11)
Southampton: Booth Centre (acc 46 +10 ‘somewhere safe to stay’)
Sunderland: Swan Lodge (acc 65)
Swindon: Booth House (acc 50)
Warrington: James Lee House (acc 54)

Family Services

Birmingham Shepherds Green House (19 families Domestic Abuse Service)

Veterans Services

Wrexham: Tŷ Dewr (acc 12)

3 Child Contact Centres

Worthing Winton Birmingham

ATMS Safe Houses

ATMS Safe Houses
Bradford: 14 beds
Leeds: 6 beds
Leeds: 3 beds
Newcastle: 15
London (Westminster): 15
London (West London): 15
Nottingham: 8
Bath: 32

ATMS Outreach Services

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London – Outreach Nottingham – Outreach Derby – Outreach Leicester – Outreach Northampton - Outreach

Registered with Care Inspectorate Wales Cardiff Ely Creche

In addition, our Employment Plus programmes operates at 290 locations across the UK, supporting, coaching and helping thousands of people into work across the UK. We also operate an extensive network of safe houses for the survivors of modern slavery.

How We Work

Our Social Work Trust, for which this is the Annual Report and Accounts, is the charitable registration through which we allocate and manage funds for our (principally) residential centres and centrally co-ordinated operations. Much of the funding for this work is received through government and local authority contracts and grants, with the cost of the additional support, wellbeing and training services being met from a grant from our sister charity, The Salvation Army Trust. To see the full picture of our work, you will need to read both sets of Reports and Accounts.

While The Salvation Army Social Work Trust is not unique as a provider of centrally co-ordinated residential and support services, it is certainly distinctive in terms of its structure, and this distinctiveness gives us a real opportunity to go about our work in impactful ways.

The Salvation Army is a church and charity that doesn’t just help people by providing immediate, practical support to overcome issues such as addiction, homelessness, social isolation or poverty and recovery from slavery; it also strives to address the reasons that cause these situations, with a view to effecting sustainable change in individuals and society at large.

What sets The Salvation Army apart from other organisations is that we have the combined strength of our centrally co-ordinated services and our locally co-ordinated churches and community centres which are all playing their part to bring about positive change. When this really comes together, as it does in many places across the UK, it models what we call ‘integrated mission’.

Many of the programmes funded by The Social Work Trust support people facing complex challenges. Therefore, a more centralised organisational approach is appropriate for people experiencing homelessness or a survivor of modern slavery or a person recovering from addiction. Many of these services are also regulated and therefore require centralised or coordinated reporting.

This contrasts to the approach used in many of the programmes funded by the Salvation Army Trust which tend to be less centralised and more ‘organism’ than ‘organisation’. The Salvation Army accommodates these differences through different management structures to ensure support and oversight is appropriate in differing contexts.

Our strategy in the Social Work Trust has been to ensure that the work whether it is residential or delivered locally, is effective and efficient, compliant, and as transformative and as supportive as possible, and that all we do starts with the needs of people we serve. That is why in addition to statutory funding we are committed to deploying additional Salvation Army funds granted to the Social Work Trust from The Salvation Army Trust, in order to provide the best possible additional support services we can, in order to achieve the best outcomes for the people in our care.

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While we have ongoing contractual commitments which it is our mission to meet, we are always looking to ensure that opportunities to make additional differences are identified, assessed, and when possible seized. Our strategy therefore is one of controlled and best possible ongoing delivery, and at the same time a disciplined ambition to do as much as we can in ways that are as meaningful and innovative as we can, in as much of the UK as we can.

The Salvation Army Trust provides, and cross charges for, centrally co-ordinated facilities – such as HR, finance, property, IT, PR and media support to The Salvation Army Social Work Trust. This approach enables us to be efficient and effective in the use of resources.

ILLUSTRATING THE WORK AND ACHIEVEMENTS OF THE SALVATION ARMY SOCIAL WORK TRUST 2024/2025

Our extensive, centrally coordinated work is funded by The Salvation Army Social Work Trust (‘The Social Work Trust’). It includes residential programmes for people experiencing homelessness, addictions services, older people’s care homes, employment services and family centres.

Much of the funding for this work derives from government and local authority contracts, and substantial supplementary transfers from The Salvation Army Trust.

This year we have and will continue to focus on two of our largest operations: modern slavery and homelessness but we also illustrate other vital areas of mission that is funded through The Social Work Trust.

General election - seeking the best for our communities

In the run-up to the UK General Election, the Public Affairs Unit produced a principles-based manifesto setting out key concerns in the themed areas of Overcoming Poverty, Seeking Safety and Security, Living with Dignity, and Building a Flourishing World, as well as a suite of materials to enable the local Salvation Army presence to encourage and help people to register to vote. A number of webinars were also held, to help local expressions use these resources and plan their engagement with candidates and campaigns.

Anti-trafficking and modern slavery

Why we do this work

The Salvation Army has supported and worked with people who have been trafficked and exploited since 1865. Today this work continues within The Anti-Trafficking and Modern Slavery Department (ATMSD) in the United Kingdom and Ireland Territory (UKIT).

Victims of human trafficking and modern day slavery have been subjected to forced labour, sexual exploitation, domestic servitude, and criminal exploitation. They have often experienced longlasting trauma, stigma, and barriers to recovery. Many lack access to safe and stable housing, mental health support, education, employment, and legal representation.

During the year, we remained dedicated to our mission:

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Trusted to make a difference

The Salvation Army has held the Modern Slavery Victim Care Contract (MSVCC) for England and Wales since July 2011. Survivors of modern slavery can receive support at all stages of their recovery, including:

This year, we marked the 14th year of providing specialist support. We worked with specialist partners and also had our own Direct Delivery service, offering safe house accommodation and outreach support.

Last year there were 2,741 referrals through the MSVCC:

Nature of exploitation:

Taking into account those people already in the service, a total of 9,818 people received support during the year.

Speaking out for victims

Source: https://www.salvationarmy.org.uk/news/new-bill-may-leave-modern-slavery-victims-without-protection

The Border Security, Asylum and Immigration Bill was introduced on 30 January 2025. We were pleased to see that it repealed many of the harmful modern slavery provisions in the Illegal Migration Act 2023. Our concern was that, if enforced, it could have denied protection and support to many survivors who arrived or were trafficked into the UK by irregular routes.

We also welcomed the removal of the Safety of Rwanda Act. This could have subjected survivors of modern slavery to deportation instead of receiving the specialist care and support they need to recover from exploitation.

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However, we expressed concern that the new Border Security, Asylum and Immigration Bill did not go far enough to ensure all slavery survivors could access the vital support services we and our partners provided.

This is because it has kept a measure from the Illegal Migration Act regarding people who could be disqualified from protection because they have previously had a prison sentence. We believe it risked excluding trafficking survivors who were forced to commit crimes under duress by their traffickers from receiving support.

We know that many of the survivors we support at The Salvation Army are forced into criminality by their exploiters. We were disappointed that there were not opportunities to share our expertise on the needs of survivors – expertise we have gained by listening to their voices - before this Bill was published.

Cuts to backlog welcomed

Data released by the Home Office showed a reduction by almost 40 per cent since last year in the backlog of decisions in conclusive grounds cases for people in the National Referral Mechanism. This is the government’s system for identifying and protecting potential victims of modern slavery.

We were greatly encouraged by the news. These decisions came after thorough review of each person’s case by the Government and were a crucial step in enabling survivors to move forward towards independence with greater certainty.

Major Kathy Betteridge, Director of Anti Trafficking and Modern Slavery for The Salvation Army said: ‘The people we support tell us that living in limbo can cause unnecessary additional stress in their lives when they have already endured profound suffering at the hands of their exploiters. Survivors and their support workers will join us in welcoming this news.’

Working collaboratively

The advantage of being an international movement – BEYOND programme

This programme supported slavery survivors through Salvation Army networks internationally. It connected survivors and their families with information and support, recognising that survivors' lives often extended beyond borders.

It focussed on return and re-integration, support to family separated overseas and cultural exchange. It did this through working with designated referral partners in the UK and internationally using the National Contact Persons (NCPs) around the world.

Over 120 NCPs responded to trafficking through the international strategy. Each NCP was a designated ‘point person’ to respond to modern slavery and human trafficking in their territory. They connected, shared best practice, undertook training and learned from one another.

Lieut-Colonel Jin-young Ma from The Salvation Army’s Korea Territory said: ‘I have been an NCP for almost two and a half years. My role involves raising awareness in a variety of ways. This includes encouraging participation in the International Day of Prayer for Victims of Human Trafficking in September and conducting awareness training.’

Last year our international work through NCPs:

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We also supported 15 projects/territories across Africa, Asia and Europe.

UKI territory

We worked collaboratively across other Salvation Army departments - including Employment Plus, Community Services, Youth and Children and local Salvation Army corps - to mobilise resources and create awareness of trafficking and modern slavery.

Salvation Army Corps provided space, resources, and activities which are crucial for supporting survivors to reintegrate into community life.

The team also worked with a network of dedicated volunteers who supported survivors throughout their journey, their roles included:

These efforts collectively enhanced the support and care provided, ensuring a comprehensive and compassionate approach to recovery and reintegration.

Last year:

Raising awareness

Hidden in plain sight?

We emphasised the importance of educating communities vulnerable to the snares of the human traffickers, and to question proposals from strangers. Keeping the issue of human trafficking in the public eye also remained a major focus for Major Kathy Betteridge and her team.

We ran campaigns to help make sure the public could recognise the signs and report it.

You could come into contact with a victim of modern slavery without even realising, but there can be some tell-tale signs:

They may look ANXIOUS, DISHEVELLED, or MALNOURISHED. They may have UNTREATED INJURIES. There may be SOMEONE ELSE PAYING FOR THEIR TRAVEL. They may have SOMEONE SPEAKING FOR THEM. They MAY NOT BE SURE OF THEIR OWN ADDRESS.

If you have come into contact with someone who you suspect may be a victim of modern slavery and in need of help, phone our free 24/7 confidential referral helpline: 0800 808 3733.

Watch a video explaining the signs at salvationist.org.uk/anti-slavery-day.

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#WeAreNotForSale

This temporary shop product-style barcode tattoo campaign - saw a significant increase in the number of people wearing the tattoos, sharing social media posts, and generally engaging, with this campaign which provides opportunities for people to show solidarity with survivors of modern slavery.

Policy influence

The Salvation Army remained committed to improve the protections available to those who have been exploited and trafficked. The Salvation Army has the recognition, trust and ability to speak to those in positions of power and to enact change.

We worked with colleagues from across the sector and with Parliamentarians from all political parties to protect and push for improvements to the systems in place.

Advocacy

We also advocated on behalf of survivors and included survivor voices in advocacy to promote public awareness of trafficking and modern slavery and its impact on human lives.

Last year, we reached 2,127 people through 44 awareness sessions and delivered training to a range of groups including the NHS, prison staff, government officials, schools, Salvation Army Corps, and general communities, including volunteers.

Voices of volunteers

Our volunteers remained a key part of our team, giving their time, energy and expertise. Three volunteers told us about their role:

Chris – first response volunteer

‘I interview the survivor, by phone, video link or face to face, mostly with the assistance of an interpreter. Typically, it takes two to three hours. I submit a report to the Home Office for a decision on the person’s eligibility to receive a range of time limited support.

It’s very rewarding to be instrumental in getting support for traumatised people who have often endured unimaginable abuse and exploitation.’

Val - transport volunteer

‘I take victims of modern slavery and trafficking to a place of safety. I am given a pick-up and a drop-off address for a safe house. For longer journeys I may switch with other volunteers.

I travel with a chaperone; we care for the service users and ensure that they have eaten. You need to have empathy and be compassionate, as service users are vulnerable and often distressed, anxious or frightened and many do not speak English.’

Iker - mentor volunteer

‘By offering support, guidance and a listening ear, I help people rebuild trust, regain control of their lives and work towards their personal goals.

It's rewarding to contribute to their recovery journey and to be part of an organisation committed to fighting exploitation. I've been able to direct them to local resources where they can improve essential skills, such as IT, which helps them become more independent and empowered.’

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Voices of survivors

Rose’s story

Rose, came to the UK when she was offered the opportunity to become a nanny for a wealthy couple. Her dreams of a new life quickly turned into a nightmare when she was forced to work gruelling 12 hour unpaid shifts at a restaurant owned by the couple for six days a week and ordered to do more chores at home on her day off.

'They watched me all the time, because every room had CCTV. They kept saying that they would fulfil their promise of helping me to study, but eventually I realised they had only brought me here to work for them as a slave,’ said Rose

Mentally and physically abused by the couple, Rose was persuaded to go to the police by a regular customer at the restaurant who noticed that something wasn’t right. Rose is now being supported in a Salvation Army safe house in the East of England. She said: 'I arrived at about two in the morning, but someone was there to greet me. She told me I had nothing to worry about now, that I was safe and that it was her job to protect me.’

Rose is now rebuilding her life with the help of The Salvation Army. ‘I'm getting my confidence back. I know my future is very bright and hopeful. If one person is helped by hearing my story and doesn't have to suffer what I did, then I will be so glad’, she said.

Survivors’ song

'Dreams' international singing group is made up of survivors of modern slavery and Salvation Army support workers. Their song, The Survivors’ Song (I Will Rise Up) pulled out a heartfelt message, which came from the group’s own personal stories.

The line from the chorus was: 'I'll rise up 1,000 times, unafraid I will fight. And I'll never give up. I will survive.’

Nigel, one of the singers, said: ‘Everybody has an experience. We have different journeys in life, and we wanted to put it into a song. All of us pitched in some lines. All of us contributed to form the song’.

The song is about helping each other to rise again. With support, people have the courage to move on, to rise up. Hearing the song for the first time made everyone feel very emotional.

Nigel said: ‘We hope that, even though they may not have survived a modern slavery experience, they will get something from it that can inspire them and give them hope too.’

Listen to the song – salvationist.org. uk/survivors-song

Helping people experiencing homelessness

Concern for growing crisis

In the first three months of 2025, there was an 11.4 per cent increase in households becoming homeless or at risk of homelessness, new figures showed. This was 6 per cent higher than in the same period last year and pointed to a growing homelessness crisis.

The statistics revealed that 38,440 households were threatened with homelessness and 7,780 households were not provided with accommodation because they were not in priority need.

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We called for the government to take urgent action to prevent more people from becoming homeless. Specifically, we asked for the law to be changed so all those forced to sleep rough are deemed in priority need and offered temporary then longer-term accommodation.

To stop people becoming homeless in the first place, we also advised the government to maintain the local housing allowance so people on low incomes can afford rising rents.

Nick Redmore, The Salvation Army's Director of Homelessness Services, said: 'We are in the midst of a growing homelessness crisis. As these figures show, people living on the streets are just the tip of the iceberg. There are also thousands more, including children, living in temporary or emergency accommodation while others are forced to sofa-surf or sleep in cars and sheds’.

Update on our strategy

A year after The Salvation Army Homelessness Services Department (HSD) launched its 10 year Strategy ‘1,000 Voices’ we provide an update on progress.

Each area across the territory developed its own contextualised Strategy and Action Plans which is also aligned to the Territorial Strategy and Action Plan. The Homelessness Services Department (HSD) restructured in order to build capacity and work in a smarter way to meet the challenges of the new strategy. Here are some of the ways we did this:

In terms of our service delivery, we took the following steps:

At the end of the year, our provision included –

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Our strategy in action

Small, self-contained NAPpads

Across the territory, we have 1 NAPpad (Night-time Accommodation Project). During the year, we launched the first NAPpad in the northwest. It was installed in the car park of Salisbury House Lifehouse in St Helens.

Our pioneering NAPpads are moveable structures approximately the same size as a shipping container. The NAPpad incorporated four individual units equipped with a toilet, sink, bed, duvet, pillow and heating. These portable ‘micro-flats’ provided temporary accommodation that offered dignity, privacy and safety.

Each pad was fitted with innovative sensors that detected if someone had stopped breathing, giving responders vital minutes to save a life. Each pad also had an energy-efficient heating and water system and could keep someone safe using the same amount of energy per night as a domestic light bulb.

People could check in from 6pm and stay until 9am for up to three nights while alternative, longerterm accommodation could be found. If required, the NAPpads could be moved to different locations to meet local need. The Salvation Army worked in association with the council to accommodate people who had been referred by the local authority.

The St Helens unit was dedicated to the memory of the Lifehouse’s service manager, Darren Mulcahy, who passed away suddenly in July 2024. A plaque to his memory was unveiled in the presence of his friends and family.

Early intervention and prevention

Salvation Army service manager Charlie Malarkey hosted a drop-in centre in York. He also walked the street to check on people experiencing homelessness. In addition, he restarted a boxing initiative that had been cut due to a lack of funds.

The club created connection and brought together people from all kinds of backgrounds. ‘If you get people involved in something, you join them up with a community, with people from all faith groups in there, and it’s really beneficial. Sometimes people ask if there’s anyone they can chat to about spiritual matters while they’re there,’ Charlie said.

People aged between 15 and 85 attended sessions. They did circuit training and boxercise as well as the boxing sessions. Since they began, the boxing classes have had a huge impact on people within the community.

Charlie gave an example: ‘One lad came from experiencing homelessness, addiction and prison. He has now got a job. He has passed a load of exams. He is working for a company where they absolutely love him and he has got his family back together. ‘

Housing First gets Royal visit

The Prince of Wales highlighted The Salvation Army’s Housing First project when he fronted a twopart ITV documentary exploring solutions to homelessness.

In Prince William: We Can End Homelessness, the Prince, who is an ambassador for Homewards, a homelessness charity collaboration project, met Wayne Spencer at Windsor Castle.

Wayne is one of 24 former rough sleepers who have been provided with a home by the Housing First scheme in Cardiff, working with The Salvation Army. Housing First Programme Manager Jemma

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Jones was also on hand to explain more about the scheme, which offers intensive support to longterm rough sleepers who have complex needs and moves them into their own accommodation.

Wayne had been homeless on and off since the age of 15, and struggled with drugs, alcohol and his mental health. But, as he told William, an encounter with Jemma and the Housing First programme changed his life. Wayne now no longer takes drugs, has reduced his alcohol intake and is back in contact with his daughters.

Spotlight on our Lifehouses

Across the territory, The Salvation Army operates 48 supported accommodation services called ‘Lifehouses’ (see pages 8-11). They are places to stay, get support with housing issues and also other aspects of life such as debt problems, training, addiction or mental health.

We share news from some of our Lifehouses this year.

Haven of hope - Fleetwood

A new communal space was officially unveiled at George Williams House, our Lifehouse in Fleetwood. The aim was to support the positive wellbeing of residents, on their journey to independent living.

The Lifehouse accommodated six young people from age 16-25 and nine families as they work with The Salvation Army to move on from a period of homelessness and transform their lives.

The space was called ‘The Haven’ and was located in the garden area, providing a tranquil calming space. Hayley Fletcher, programme manager for The Salvation Army’s George Williams House said: ‘Residents are always at the heart of everything that we do and so The Haven was created from the feedback we received from them, ensuring that we had something that would support the residents in their journey out of homelessness and improve their mental health and wellbeing at the same time.’

The space was created for use in all weathers and to be available at all times of the year with its own heating, lighting and electric supplies. Sustainable wood has been used throughout the structure and The Haven was built from funding received from runners in the 2024 London Marathon who fundraised to help us transform the lives of people experiencing homelessness.

Seeing a difference – Bradford

We have teamed up with Vision Care for Homeless People and Specsavers to offer an optician service at The Salvation Army’s Bradford Orchard Lifehouse and Day Shelter.

The monthly service provided free eye tests and glasses for 50 people who were unhoused, many of whom have struggled with poor eyesight their whole lives.

Jordan Bruen, The Orchard’s Day Shelter Programme Manager, said: ‘This has been really successful. Speaking to clients, lots of people had not accessed opticians for years and had been going to pound shops to buy glasses. Obviously, their eyesight had been deteriorating and they’d not been able to do anything about it, they had just got used to having poor vision’.

One man in his sixties said it had been lifechanging. He’d never had prescription glasses before. He said ‘I can see!’ Jordan and his team reported that it was a massive step forward. They could tell he felt more confident walking around with his new glasses.

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Selfless service recognised - Plymouth

Manager of The Salvation Army’s Devonport House Lifehouse in Plymouth, Virva Martikainen, received recognition for her work with the homeless community. She was named as a finalist at the West Country Women of the Year awards, held recently at the Crowne Plaza in Plymouth.

Virva was nominated for the Inspirational Leader Award for her commitment to her team and the people whose lives she helps to transform and received a runner’s up certificate.

Devonport House provides temporary accommodation and housing support for up to 60 people. It focuses on breaking the cycle of homelessness and addiction and helping people to move forward with their lives. The Lifehouse also has rooms for working individuals struggling with rental payments, giving them a chance to save and find more secure housing.

Since taking the helm at Devonport House in 2021, Virva has worked tirelessly to promote a traumainformed approach to support individuals experiencing homelessness.

Virva's leadership extended to comprehensive staff training and the establishment of a bereavement support group for families affected by substance-related losses. With an open-door policy, she ensured that both service users and staff feel supported and heard.

Everyone’s a winner - Manchester

The Orchard Lifehouse team from Bradford won the 2024 Partnership Trophy. The competitive fivea-side football tournament was run by The Salvation Army and its subsidiary, Salvation Army Homes. It brought together football teams from Lifehouses, supported housing, outreach programmes and drop-in services from around the UK. It helped raise awareness of homelessness, boost morale and improve positive wellbeing and mental health.

It was one of the many ways The Salvation Army promoted positive and independent living for its service users and reinforces that helping people to move on from homelessness is more than just providing a roof over someone’s head.

Manchester City captain and England star Kyle Walker joined Celtic and Wales legend John Hartson to cheer on the 13th annual contest, which brought together 30 teams. John presented the trophy to the winning side and spoke to players about his career and own struggles battling cancer and a gambling addiction. He said: ‘I thoroughly enjoyed today. The camaraderie is great. There’s a lot of respect for each other’.

Best friends welcome - Sunderland

At Swan Lodge Lifehouse in Sunderland, residents who struggled with homelessness were allowed pets on site. It was seen as a key part of the support offered to residents who have struggled with homelessness.

‘Animals help with mental health and wellbeing,’ said Service Manager Christine Ritchie. ‘It gives our residents a sense of purpose looking after something else, not just themselves.’ There were seven dogs and three budgies, as well as some inquisitive seagulls.

Our housing partners – Salvation Army Homes

Salvation Army Homes is a diverse specialist provider of supported housing across England, managing or owning more than 4,000 homes. They provide supported housing and community solutions to homelessness in conjunction with The Salvation Army. Their principal focus is providing services to rough sleepers, young people experiencing homelessness, young mothers, families and ex-offenders.

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During the year, Salvation Army Housing Association (saha) rebranded to become Salvation Army Homes. ‘We’re privileged to be part of the Army family and we want to be linked more closely,’ said its Chief Executive, Lynne Shea.

Their new name is accompanied by the words ‘Safe Homes, Transforming Lives’. It’s a simple statement of their mission: to help some of the most vulnerable people in society feel safe, secure and happy in permanent home.

Read more about The Salvation Army’s local response to homelessness in The Salvation Army Trust (Charity Registration number 214779) a ‘sister’ publication to this one.

Helping people into meaningful employment

We believe that everyone has a God-given purpose in life. We are called to live in a way that most appropriate to the opportunities provided by God.

Our employment services seek to give people a hand up, not a handout. We help people discover exactly what they are capable of and, wherever possible, to enable them to see that their best is God’s plan for them. We want to help the unemployed and underemployed fulfil their potential by making a positive difference in their lives.

Employment Plus

The Salvation Army’s Employment Plus service offered tailored support to help people become jobready. Our aim was to help job seekers to get a job and stay in work.

We operated at the heart of communities in 418 locations across the territory. Our focus was on empowering individuals to overcome obstacles they face professionally and personally, and to fulfil their life ambitions.

Employment Plus has established a niche but well respected service helping people who face the biggest barriers to employment – such as a lack of up to-to date skills, those who have been unable to search for work due to health problems, disability, or homelessness.

Often the service was delivered through our corps halls, taking a person-centred approach, finding out who they were and what might be preventing them finding employment.

Where programmes took place Number of programmes
Salvation Army Corps 218
Salvation Army Community Centres 6
Lifehouses and Outreach 23
External locations e.g Jobcentre Plus 160
Prisons 11
General employment support Number of people
Single enquiry 3,061
Starts on programme 4,502
Milestones 13,947
Jobs 840

Note: milestones included creating a new CV, work focused SMART action plan, training, work experience placement (one person can achieve more than one milestone).

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Insight

90% of people using the service said they felt better about their mental health because they are engaged.

Some highlights from the year

▪ Rise in employability services

Services were established and expanded in various locations, such as Brighton, Canterbury, Stratford, and more. We addressed increasing referrals and built partnerships with local organisations to enhance community support. These services aimed to elevate employability prospects for individuals in need.

▪ New national event

The first employability and networking event was held at The Salvation Army Headquarters in June 2024. It included an interview skills workshop, fostering professional development and networking opportunities.

▪ Specialist work grew

Four UK Shared Prosperity Fund (UKSPF) contracts were launched, allowing for further expansion into specialist work for ex-offenders. The first ‘behind the gate’ provision at Featherstone prison began funded by the Ministry of Justice, offering vital reintegration support for prisoners approaching release.

Dan’s story

Dan said that he had a criminal record the length of a Harry Potter novel. After 10 years of drug addiction and drug dealing, with time spent in prison, Dan rebuilt his life with the help of Employment Plus.

His rehabilitation has been supported by Kate Pope, employment development coordinator for the Army’s service. Previously Kate had worked at HMP Liverpool, supporting the men inside with training, work and education opportunities.

Kate and Dan were known to each other in HMP Liverpool, but it was after Dan left prison that Kate got him registered with Employment Plus. ‘We came up with a plan of action and spoke about training opportunities,’ said Kate.

Dan met with Kate fortnightly over the past year to learn interview skills, write cover letters and apply for jobs. ‘He’s really intelligent,’ Kate says. ‘He’s caring and nurturing. So I suggested we look at opportunities where he could advise and support others.’

Dan started work as a drug recovery champion for an addiction rehabilitation charity. He is indebted to Kate for seeing not the person he was but who he had the potential to be.

‘She cares about the person sitting in front of her.’ To Dan, Kate represented the best of The Salvation Army, inspiring him to write a poem celebrating her as ‘a proper diamond’. ‘Anyone involved with the Army clearly has the principle of forgiveness within them,’ he says. ‘I think that is very, very important.’

A Proper Diamond – Dan’s poem

I first met Kate in Walton Jail, Behind those bars, I was so cold and pale. She wasn’t like the rest in there,

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She actually listened, she actually cared.

She saw past records, past mistakes, Knew every man has what it takes. She’d talk to lads who’d lost their way, And give them hope for better days.

She left the prison, took a stand, To help more people first-hand. With The Salvation Army crew, She’s changing lives, she’s seeing it through.

Since last June, she’s backed me strong, Pushed me forward, proved me wrong – When I doubted, when I fell, She made me see I could do well.

Reuniting families – tracing service

Reconciliation is at the heart of the Christian message of salvation and our priorities as an organisation: to Seek Justice & Reconciliation and to Serve Others Without Discrimination.

The Family Tracing Service continued its work to create opportunities for reconciliation within families. It enabled people to live with a measure of peace within a loss which is often ambiguous, and experience increased wellbeing whether or not a reconciliation is the outcome.

Three key achievements:

1. Success rate of 86% - reconciliation or knowledge of person sought.

  1. 526 people experienced reconciliation within their family.

  2. Hundreds of people started a search with us (alternative services are not affordable for all).

The key to our service was that it is never a call-centre experience, it was always a personal one. Our dedicated and compassionate team listened, heard, helped, served and gave hope. This gave us the opportunity to start conversations that connected service users with The Salvation Army.

Service without borders

The Family Tracing Service continued to serve people living overseas too, where there is no access to a Salvation Army tracing service. Where there was a service, we worked with our colleagues across borders.

Stories of love (cases which closed in 2024/25)

Find out more – in 2025 we will be celebrating the 140 year anniversary of the Family Tracing Service. Learn about our unique service and its history https://www.youtube.com/watch?v=bPJVXOu-EQI

Lasting Love

We helped two elderly brothers to reunite after 20 years of no contact.

Like many siblings, the loss of a parent caused the brothers to drift apart after their parent’s funeral had taken place. But later on, an illness became a resonant reminder of the separation. Time had almost run out, the brothers both experienced the joy of reconciliation in their later days.

Unconditional Love

We helped a child and parent reconnect after many years apart.

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From the age of two, the child had had no contact with the parent. The child, now an adult, desired to make contact. To start with, Family Tracing forwarded letters between the child and parent, who was in prison. Eventually they met there, making an important and brand new connection after all those years.

Father’s Love

We found a man’s son, but sadly he’d lost his life.

Sometimes, the discovery of a person brings sad news. Our team worked with Family Tracing Salvation Army in France to locate a young person in the country, but he had died. We took great care when sharing news of the tragic death with his father, and helped him with the shock of his bereavement.

Find out more – in 2025 we will be celebrating the 140 year anniversary of the Family Tracing Service. Learn about our unique service and its history https://www.youtube.com/watch?v=bPJVXOu-EQI

Inclusion for people with a disability

One in four people have a disability. The Salvation Army aims cultivate an inclusive attitude and approach for people with a disability. We seek to empower disabled people to be actively involved in all aspects of what we do.

Here we illustrate some of the ways we have done this, over the past year.

Music man project

The Music Man Project is an award winning and fully accessible music service for adults and children with learning disabilities. It provides education, enjoyment and access to performance opportunities. The groups learn songs, how to play instruments and Makaton signs.

Across the country, The Music Man Project has developed opportunities for people with disabilities to build confidence and connect through music. Although developed for people with a learning disability it is open for everyone.

We continued to share the joy of The Music Man Project with more people with a disability. For example, in Wakefield about 60 people attended a Music Man Project taster day, bringing much fun, laughter and blessing. Corps officer Captain Terry Hendy said: ‘To share our faith we need to make friends and what a way to make friends.’ The corps planned to start a monthly Music Man group, as well as one at Royston, a few miles away

On another note… four of our Music Man Project groups, made up of 80 members and supporters performed at the Royal Albert Hall with Music Man Project groups from across the UK.

Enabled Summer Camp

‘Enabled’ provides spiritual and social fellowship for people with a disability and their carers. There were three new aspects to Enabled Summer School 2024.

  1. It was renamed the Enabled Summer Extravaganza, as suggested by members.

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  1. We welcomed the highest number of newcomers for many years, with six new members and eight new supporters attending for the first time.

  2. To fit everyone in, we relocated to a larger venue in Northampton, King’s Park Conference Centre.

Appropriately, the theme was ‘New Beginnings’. In our fellowship groups, we considered new beginnings by exploring the Bible stories of Ruth, Noah and the prodigal son.

The options for main activities were band, choir or timbrels followed by musicals, Music Man Project or – a new option for this year – video production. For the first time we also introduced an option to the Enabled choir with some people choosing Godly Craft as an alternative to crafts.

Some members also enjoyed exploring the area, including Northampton and Rushden Lakes. The final day saw members sharing what they have been practising all week, with music performances and a presentation by the video group.

All 102 attendees had a great week of faith, fun, fellowship and friendship. At the end, some suggested this was the best summer gathering ever! We will be back next year as we celebrate 50 years since our first summer gathering back in 1975.

What did attendees say?

‘We discover each other’s hopes, dreams, hurts, gifts and abilities.’ Karen, attended with her daughter Hannah

‘ Everyone knew my name. From the minute I put my lanyard on, I felt that I belonged.’ Trudy, who attended in person for the first time.

‘It was fabulous, I would like to go again.’ Sam, who met lots of new friends.

Enabled – everywhere!

Over the year, 354 were members enrolled in our Enabled community. Outside of the Summer Extravaganza, members met up in person and online for Enabled at Christmas and our Easter Event. There was a further event in Wakefield, with others being planned in Enniskillen and Kilbirnie.

Spotlight on Strawberry Field

Strawberry Field has been in the care of The Salvation Army since the 1930s as a place that supports vulnerable young people and a site of spirituality and inspiration.

This legacy continues with The Salvation Army’s redevelopment of Strawberry Field to give young people with learning disabilities in Liverpool the chance to succeed, and honour the site that inspired John Lennon.

We reflect on what has been happening at Strawberry Field during the past year. As some of this work is funded through The Salvation Army Social Work Trust, this is featured in the Annual Report for both trusts.

Steps to Work programme

The Steps to Work programme at Strawberry Field is a 12 to 18 month scheme. It offers young adults with learning disabilities – and other barriers to employment – the opportunity to gain skills and work experience, opening the door into paid work.

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Step 1

Trainees were appointed a dedicated work coach who supported them for the duration. They also received emotional and pastoral care from the team.

Step 2

Trainees explored what they wanted out of life and work, and considered a whole range of industries. Our team liaised with colleges and partners organisations to set up vocational courses and work placements.

Step 3

The end goal was paid, sustainable employment. Trainees have successfully achieved this in an array of industries, from agriculture, conservation and construction to customer service, retail, hospitality and finance.

Last year, the programme saw nearly 60% of trainees moving into employment. This is 12 times the national average for people with a learning disability. It is three time the national average for people with autism.

For 2024-25: 88 trainees started the programme 77 completed the programme

Of those trainees who completed the programme:

The Learning Hub run by Lynne Furlong in the 2024-25 financial year accommodated seven students on placement in the centre and supported 91 university students who worked ‘off site’. Those students supported within the university campus are provided with projects which are active issues for Strawberry Field. In the reporting year projects have taken place to promote inclusive workplaces and breakdown barriers to recruitment for the STEPS to Work programme, a sustainability business ventures project which focused on methods to increase engagement in the new Steps for Students Programme and another project examined how effective translation can support accessibility and business sustainability (which included translating information for trainees).

Adele Murphy, Strawberry Field’s Employment Development Co-ordinator

Two graduate stories Alfie McKeown

Steps Outcome: Paid Work

Alfie came to the Steps to Work programme after completing an internship. Alfie had low confidence and struggled to see the natural skills he has for communication and teamwork.

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Alfie gained paid work in retail with a supermarket chain weeks after starting his first work placement in the Strawberry Field shop.

Megan Thomas

Steps Outcome: Paid Work

Megan's life-changing journey to overcome self-belief challenges has seen her self-esteem and confidence grow, which has empowered her to embrace new opportunities. Her newfound independence has inspired her to aim for semi-independent living.

Megan's determination and resilience has transformed her life and inspires others. She is now working as a Catering Assistant at a national department store.

Giving us… a step up

The Strawberry Field site is famous worldwide because it inspired the Beatles' 1967 single Strawberry Fields Forever. Its writer, John Lennon, had grown up nearby and played in the grounds of the home as a child.

On the 9[th] October 2024, which would have been John Lennon’s 84th birthday, Strawberry Field relaunched its photomosaic mural. This is a montage of photographs and as a fundraiser, fans were invited to place their image alongside Beatles legends, famous Liverpool faces and people from all around the world.

In the summer, Strawberry Field also displayed a rare vinyl acetate of John Lennon and the Plastic Ono Band’s seminal hit record, ‘Give Peace a Chance’ and ‘Remember Love’, to mark its 55[th] anniversary. The record – one of only 50 in the world – was added to the visitor exhibition. It was kindly donated to us by Yoko Ono and Sean Ono Lennon.

Money raised from ticket sales for both exhibits went to support the Steps to Work programme, giving it a step up. The rare vinyl went on to be sold, to raise more funds.

Awards and accolades

A winning partnership

In May 2024, we were thrilled to announce that Strawberry Field won a UniTemps LJMU (Liverpool John Moores University) External Engagement of the Year Award.

The award was accepted by Lynne Furlong, who runs our Learning Hub. Lynne did wonderful work with Liverpool John Moores University students, helping them gain experience to build their CV and stand out from the crowd when looking for employment.

The awards saw both students and employers awarded for their contribution to part-time work opportunities with Unitemps (a recruitment specialist service for students, graduates, and community members.)

Congratulations Eilis

Alongside our win above, Eilis who previously interned at Strawberry Field won Intern of the Year. There was a record number of nominations for Intern of the Year and the competition was stiff, so this award was a true testament to Eilis and her work.

An appetite for success

Strawberry Field won Café/Bistro of the Year at the Liverpool City Region Tourism Awards 2024. Also, for the second year running, we picked up the award for Small Visitor Attraction of the Year.

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Mission director Major Kathleen Versfeld said: ‘Thank you so much to everyone who made these wonderful achievements possible, including our staff team, volunteers, supporters and visitors.’

Thoughtful friend to older people

Grey hair is a crown of splendour; it is attained in the way of righteousness.

(Proverbs 16:31 NIV).

Almost every country in the world is experiencing growth in the number and proportion of older people in their population. In the UK, the ONS estimates that, by 2045, 4.3% of the population will be over 85 years old.

These longer years are not necessarily lived in good health, and health challenges are increasingly common in later life. it is estimated that the number of over-65s needing help with one or more daily living tasks is projected to rise by 48% over the next 20 years.

The Salvation Army provided services where older adults received the support needed to thrive and age positively and experience a real sense of ‘life in all its fullness, with Jesus’.

As well as our strong programme of corps-based support for older people, we provided round the clock care for all the older people in our care homes. We continued to advocate for the older people on the issues that matter to them, such as loneliness and isolation.

Residential care homes

We had 11 care homes that can support up to 417 at any one time. In the last year, we supported 477 older people and their loved ones.

Here are some stories from our residential care home service:

Hope at Holt House

An older woman, Jean (we have changed her name), had a severe stroke in September 2024 and came to Holt House to receive palliative care. It was after a hospital assessment said there was no further rehabilitation potential.

Our care home staff cared for Jean over the first few weeks. They helped build up her strength and got her weight back within range, supporting her with all tasks.

Staff then started to give her small things to do for herself such as wash her face or dry it. They gave her balls to hold in her affected hand and cycle pedals for her legs to exercise.

The staff were determined, along with her family, to get Jean to the best she could possibly be. Gradually her strength built up and she began to feed herself finger foods, then staff introduced adapted cutlery. She went back to eating a normal diet with no assistance at all just a lipped plate.

Through her determination and staff’s dedication Jean has the quality of life she had before the stroke. Staff, family and Jean worked tirelessly together, demonstrating all our values and her family are eternally grateful.

Joy at Youell Court

Shirley (we have changed her name) had dementia and was cared for in Alfred house at Youell Court, where residents receive a little extra help. As her dementia progressed, Shirley started

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missing breakfast and sleeping in past lunch. She became confused and distrustful, and didn’t want to join in activities either.

We suggested moving Shirley to the middle floor of Olive House, where staff deliver individual care in a relaxed space for residents who are living with dementia.

We took Shirley to Olive House and she shared some meals with other residents and met the staff. She said that she would like to move there. We took photographs of her old room and set up the new one in exactly the same way, so everything was familiar.

In Olive House, Shirley got up early and took all her meals with the other residents. Shirley attended her first ever singing by heart session three days after moving to Olive house.

Emma Bailie, Home Manager, said: ‘Shirley put her arms out to hug me, she was smiling and seemed so happy. She is spending most of her time in communal areas, she is taking part in activities, events and has a spring in her step’.

Turning loneliness into togetherness

Our No One Alo ne project encouraged corps and centres across the territory to engage in opportunities for greater local social cohesion. It was led by Andrew Wileman, assistant director of Older People’s Services.

In the UK, over nine million adults are frequently lonely. Loneliness is feeling disconnected even when you are around others. Social isolation is when someone is physically separated from other people. Anyone can be affected, but some groups are more at risk, including older people.

‘Loneliness doesn’t treat people equally,’ remarked Andrew. ‘And it affects far more than older people, for example, people who are financially disadvantaged, or those who live in poor housing with poor access to public transport. These can create a sense of isolation and loneliness that’s really difficult to tackle.’

No One Alone resources link to community engagement opportunities such as coffee mornings, volunteering and exercise opportunities and befriending events, as well as signposting to other Army services and age-specific resources.

Andrew also had a seat on the All-Party Parliamentary Group for Tackling Loneliness and Connected Communities.

Read more – we elaborate on the local aspects of our work in our sister Report & Accounts for The Salvation Amy Trust.

Understanding and supporting addiction

New positional statement

The Salvation Army’s Moral and Social Issues Council (MASIC) published a positional statement on drug use and dependency. It set out information and guidance to Army members.

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We defined addition as ‘any harmful behaviour that a person finds temporary pleasure or relief in, and therefore craves, but cannot give up.’ It could involve cigarettes, alcohol, coffee, illegal drugs, video gaming, gambling or sex.

We recognised that personal circumstances and background influenced drug-using behaviour and the likelihood of dependency. We believe that The Salvation Army should offer compassion rather than condemnation to those affected by drug use. We offered emotional, therapeutic and practical interventions to people negatively impacted by the use of drugs.

The positional statement showed our commitment to serving others without discrimination. MASIC’s aim was to help Salvationists in this territory engage in moral and social issues.

Calls for specialist support

Source: https://www.salvationarmy.org.uk/news/scottish-drug-deaths-reinforce-calls-specialist-support

The Salvation Army called for an increase in specialist support to tackle drug and alcohol use in Scotland. Statistics showed that more than 1000 people were suspected to have died from drug use in 2024.

These new figures showed a welcome reduction in the number of deaths linked to drugs, but that was from a high starting point. The challenge was to maintain progress. We knew only a fraction of people affected by substance use in Scotland are offered the help they need, both short-term help to survive and longer-term help to thrive.

In particular, The Salvation Army called for:

As a provider of addiction services, the church and charity has helped hundreds of people overcome the harm caused by drugs and rebuild their lives. The Salvation Army Centre for Addiction Services and Research (SACASR) was established in 2017 in a partnership with University of Stirling to develop new ways to help address substance use in communities across Scotland.

Read more about the crucial interventions we want to see, in The Salvation Army’s report Breaking the Cycle https://www.salvationarmy.org.uk/homelessness-policy/breaking-cycle

Overdose antidote welcomed

Source:https://www.salvationarmy.org.uk/news/government-plan-roll-out-overdose-antidote-welcomed

Over the years, we have used Naloxone, a crucial opioid overdose antidote, to save lives at our homelessness support projects. Naloxone is safe, simple and effective but there had been a legal restriction on its availability.

The Salvation Army welcomed the Government’s announcement that will enable more professionals to give take-home supplies of Naloxone. We know that witnessing someone moments from possible death can be shocking and devastating so it’s also essential the Government raises public awareness about Naloxone to give people the confidence to use it.

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Major Dr Will Pearson, The Salvation Army’s Assistant Director of Addictions, said: ‘We are delighted that the Government has listened to the concerns of ourselves and others about the need to expand Naloxone’s availability’.

We have yet to see the detail of how the expansion of Naloxone will be funded. It’s essential the Naloxone roll out is not taken from money set aside for addiction prevention and support services. Without also addressing the root causes of addiction the battle against drug-related deaths cannot be won.

Supporting addiction

We had three addiction services within Homelessness Services, as well as outreach services, corps and community services that provide support. We followed a harm reduction approach. As its name suggests, a harm reduction approach aimed to minimise the negative impacts of a behaviour. We do not require someone to stop their behaviour as a condition of support.

Our programmes considers abstinence to be the ultimate goal, but harm reduction is an essential and pragmatic starting point.

An example of our approach – Gloucester House, Swindon

At Gloucester House, our rehabilitation centre near Swindon, we welcomed people who were at breaking point with their addictions to alcohol and other substances.

Over the course of 12 to 24 weeks, 12 men at a time took part in a 12-step recovery programme to help them break free from their substance addictions.

'Addiction impacts their physical health, mental health and emotional health. We've had people that have struggled to come in and walk, and one person came from a hospital bed and had not been able to get themselves around,' said Alan Baldwin, the centre's chaplain.

We had counsellors and support workers on site as well as complementary therapists and wellbeing support. ‘As they go on their journey with the 12 steps and focus on their idea of God, you can see the change, you see their soul begin to recover’, said Alan.

Staff members spoke of the many transformations that they have seen in clients at Gloucester House. Such changes were possible through the programmes that were offered – including education and training courses, creative workshops, external activities, exercise sessions, group therapy and help with life skills as well as spiritual support.

Alan added: ‘From a psychological view, anxiety and fear are two of the big things I notice when people arrive people say: ‘You've taken away my crutch, I haven't got the alcohol and the drugs to support me any longer. What do I do?’

‘But as they're shown love, kindness and support, and they get involved with GPs and others, you see the recovery beginning to take place,’ he concluded.

LOOKING FORWARD WITH AMBITION AND COMMITMENT

As a church and a Movement, we live in the communities we serve. We understand the problems and the symptoms that affect everyday life. We understand the wider issues that impact our

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society, such as homelessness, addictions, slavery, and the importance of employment. We are committed to putting faith into action and doing something.

That is why we are such an agile, responsive, and constantly evolving and adapting organisation. This report has illustrated how we responded afresh in 2024/2025.

Looking ahead, we will continue to adapt and innovate to meet current and new needs. A critical feature as we move forward is to do whatever we can to enable our front line, or local mission delivery as we call it, to flourish. With effective resourcing, support and oversight, our continuing intention is to enable this ‘flourishing’ of the mission of The Salvation Army locally.

We will continue to provide essential funding for our corps and community centres to enable them to innovate, develop and continue to meet needs that are not being met.

We will continue to support The Salvation Army Social Work Trust to enable it to provide the best possible support for people in our residential centres and those who engage with or are referred to us for support and, in the case of modern slavery and human trafficking, protection and a fresh, safe new start.

We will continue to ensure local mission is supported from our territorial and divisional headquarters in the ways it needs to ensure effective, efficient, and compliant ministry, including financial controls, safeguarding, safe mission (health and safety), staff development and training and effective procurement.

We will continue to build on the work of the Structural Co-ordination and Design Project by maintaining a culture of continual improvement across the territory with a real commitment to address any organisational issues that are obstacles to enabling local mission to flourish.

We will continue to invest in funds that allow innovation and will continue to invest in our fundraising to ensure we have a stable and sustainable future to serve our communities.

With changes in society, we will look at how we can ensure that we are encouraging different forms of church leadership and membership so we can move with the times but maintain our distinctive ethos.

Above all, we commit to ensuring a meaningful presence across the UK, to making a difference in people’s lives in practical and spiritual ways. Our commitment to 2025 and onwards is to continue to strive to deliver our vision: ‘Fullness of life for all with Jesus’. That is our driving force and our goal, and that vision sets the strategic direction for each of our corps and community centres and directs the support that our territorial and divisional headquarters will provide.

Subsequent to the year end, the Trustees have decided to reimagine the support we provide to older people. This will entail withdrawing from residential care homes and instead developing a range of support services within local communities, particularly in those areas where a Salvation Army church is present. Services, as appropriate for individual communities, such as Parish Nursing, Dementia Support groups and specialist programmes for additionally disadvantaged older people such as those who are socially isolated due to location or access needs or those who are digitally excluded. Where possible the current residential homes will be sold to other providers as a “going concern” so that the care of individuals is uninterrupted.

GOING CONCERN

The Trust has felt the financial impact of global economic factors, particularly the high inflation rates on our cost base plus the related cost of living crisis. At the time of writing, inflation in the

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UK is 3.6%. The Bank of England projects that inflation will fall to around 2% by mid-2026, but this remains a watching brief with the current instability arising through the trade tariffs being imposed by the USA and the global political unrest. The organisation anticipates that the trading environment will continually be challenging. The Trust has a significant contract with the Home Office, £79.2m (2024: £85.2m) which supports the Anti-Human Trafficking Programme. This equates to 97.4% (2024: 98.1%) of the Other Social Operations income stream, and should this contract be terminated; it would also mean that £77.0m expenditure (2024: £82.2m) would no longer be incurred. The Trust could continue to operate without a significant impact upon other service deliverables.

Financial projections and other supporting financial models that detail potential financial impacts upon the Social Work Trust, are reviewed on a regular basis by the operational boards as well as further scenario planning to assess the potential short, medium, and long-term financial implications of other risks and opportunities. Albeit this is currently undertaken on a lower-level scale.

Looking ahead, we plan to better utilise the financial reserves to support the organisation and where necessary invest in strategic priorities. This financial year, 2024-25 saw us continuing to spend on our strategic aims and utilising reserves to do this where possible. The closing unrestricted reserves were £169m (2024: £173m) and the cash and bank balances were £54.3m (2024: £23.9m). The significant increase in cash is due to significant funds being generated from investment property disposals in the year and the £35m deposit held by The Salvation Army Trust on behalf of the Social Work Trust in the prior year which was transferred over this year. Based on cash flow forecasts prepared covering the period to 31 March 2027, the Directors have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of approval of these financial statements and are not aware of any material uncertainties that may adversely affect the organisation. Accordingly, the financial statements will continue to be prepared on the goingconcern basis.

RAISING FUNDS

The income streams for The Salvation Army Social Work Trust consist mainly of statutory funding and, to a lesser degree, income from the sale of assets and income from legacies and donations which have been specifically made to and received directly by this Trust.

Fundraising for the overall work of The Salvation Army, including the work carried out by The Salvation Army Social Work Trust, is largely managed through and executed under The Salvation Army Trust, a separate charity from The Salvation Army Social Work Trust.

One of the distinctive features in the delivery of services covered by The Social Work Trust is that we always seek to do the best we can to help people experience holistic change. Often this means providing additional support services, training and skills development. This comes at a cost, and therefore to meet this additional cost The Salvation Army Trust makes a grant to The Salvation Army Social Work Trust based on funding needs.

This grant is agreed in advance as part of the budgeting process, and the actual value of the grant made during the year appears in The Social Work Trust as ‘Grants Receivable: The Salvation Army Trust’.

No active fundraising is carried out by The Salvation Army Social Work Trust.

Our fundraising and appeals programme feature the work of both Trusts.

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The Salvation Army Trust Report and Accounts form a sister publication to these reports and accounts.

SUBSIDIARIES

The Salvation Army Social Work Trust works in harmony with its subsidiary, Salvation Army Homes (SAH). SAH is a charitable provider of supported housing and support services across England, registered under the Co-operative and Community Benefit Societies Act 2014 (registration no. 15210R) and is also registered with the Regulator of Social Housing (registration no. LH 2429).

The principal activities of SAH are the management and development of social housing, primarily for single people. This includes Lifehouses for homeless people, foyers offering support and training, housing with appropriate support services for vulnerable people and special housing for the elderly as well as self-contained rented homes at rents affordable to those on low incomes.

SAH operates nationally in over 70 local authorities across England and has five principal areas of operation:

1. Agency-Managed Centres (1,497 bed spaces): SAH works in partnership with a number of organisations nationally, including The Salvation Army, to provide a wide range of Agency-Managed Supported Housing services. These include residential centres (called Lifehouses) for homeless single people and homeless families, centres for those recovering from addictions, accommodation for ex-offenders and individuals and families fleeing domestic violence. Within these partnerships, we act as the landlord owning and maintaining the buildings, whilst our managing agents undertake the day-to-day management of the service.

2. General Needs (1,275 homes): SAH owns a range of accommodation that provides secure affordable housing for families and individuals. Residents access this accommodation through local authority waiting lists as we have nomination arrangements in place with our local authority partners.

3. Accommodation for the over-55s (291 bed spaces): Some of SAH’s accommodation is specifically designed for those over the age of 55, including a scheme manager providing on-site support. In accommodation where there is no staff on site, there will be an alarm call system and other types of floating or community support available. Styles of accommodation vary from studio flats to bungalows. Many of SAH’s schemes have communal facilities where residents can engage in a range of activities.

4. Directly Managed Supported Housing (507 bed spaces): SAH directly manages a number of schemes throughout England, both managing the building and delivering the day-to-day management and support. As with the Agency- Managed schemes, SAH provides a range of support services to the residents. All schemes, including our foyers which are tailored for those between the age of 18 and 25, have 24-hour staff support where residents engage in a range of activities to promote independence with the aim of resettlement into independent living.

5. Registered Care Homes (52 bed spaces): SAH owns a number of registered care homes, working with a partnering agency to provide support and care for clients in a residential environment.

SAH also manages 707 residential properties, providing a housing management service throughout the country.

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MODERN SLAVERY AND ANTI-HUMAN TRAFFICKING STATEMENT

At The Salvation Army in the United Kingdom and Ireland Territory we hold a zero-tolerance stance on acts of modern slavery and human trafficking and on any breach of our Ethical Policy and will not condone any such action by our contractors, suppliers, or consultants. We take this issue very seriously and are committed to preventing acts of modern slavery and human trafficking from occurring within our supply chain. Our Procurement Ethical Policy is integral to all supplier contracts and sets out the overall standards surrounding human rights, child labour, discrimination, corruption, bribery or other financial impropriety, legal compliance, and ethical conduct with which our suppliers must comply.

A Supplier Ethical Declaration is referenced in the standard purchase terms and conditions of The Salvation Army and compliance is a contractual requirement for all suppliers operating under these standard terms and conditions. In addition, all suppliers and contractors submitting tender responses must confirm their agreement and acceptance of the terms and conditions and sign the ethical declaration and apply these standards to their own supply chains.

Our Procurement Unit continually reviews its supply base, examining suppliers in those areas that represent the highest risk of modern slavery, particularly in spend areas relating to temporary labour, cleaning, catering, linen, branded goods and building services. Where trade and industry best practice standards are used as the benchmark and The Salvation Army has adopted the use of Constructionline for tendering and selecting building suppliers.

Due to the importance of training and education in the fight against modern slavery, the Procurement Unit has partnered with Stronger Together to deliver training to members of its team on identifying potential victims of modern slavery. All members of the Procurement team compete the Chartered Institute of Purchasing and Supply ethical procurement assessment annually.

The Procurement team holds regular Helping The Salvation Army Buy Better training seminars for stakeholders where ethical supply chain issues are covered. The Procurement team has also hosted a supplier conference with a specific focus on providing education on combating supply chain labour abuses. The commitment to ensuring ethical supply chain standards is also embedded in the recently adopted Salvation Army Fiscal Stewardship Principles and the Procurement Unit will be asked to report against these standards regularly.

STREAMLINED ENERGY AND CARBON REPORTING (SECR) STATEMENT

At the Salvation Army Social Work Trust (SWT) we recognise that climate change represents a significant global threat, and we recognise that we need to reduce our operational energy use and carbon emissions, and we have set ourselves some challenging targets to achieve this. We are pleased to report our progress in this area over the last year.

Targets

Our carbon reduction targets for the operational emissions included in this report are:

What do we mean by net zero? We will reduce our emissions by at least 90%, in line with the criteria of the Science Based Targets Initiative’s Net Zero Standard.

We have also calculated our wider indirect carbon footprint and set a target to reduce those emissions to net zero by 2040. Further details are included in our Net Zero Strategy 2040.

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Reporting methodology

This report has been prepared in accordance with the Streamlined Energy and Carbon Reporting Guidelines (SECR) 2019, the Greenhouse Gas Reporting Protocol Corporate Standard and ISO 140641. To convert activity data into carbon we have used the 2025 UK Government's Conversion Factors for Company Reporting.

Greenhouse gas emissions and energy use data

Tonnes CO2e Tonnes CO2e Tonnes CO2e Tonnes CO2e Tonnes CO2e Tonnes CO2e Tonnes CO2e KWH KWH KWH KWH KWH KWH KWH
Scope 1 (Gas, Petrol,)
Baseline
(2019/20) 2020/21 2021/22
2022/23
2023/24
2024/25		 Baseline
(2019/20)
2020/21
2021/22
2022/23
2023/24
2024/25
Property 4,224 4,096 4,122 4,286 4,205 4,370 22,973,309 22,274,210 22,507,000 23,525,009 23,030,788 23,630,735
CompanyFleet(Petrol & Diesel) 54 225 90 99 106 118 227,052 940,111 376,925 421,174 448,339 525,780
Total Scope 1 4,277 4,320 4,212 4,385 4,311 4,488 23,200,361 **23,214,321 ** **22,883,925 ** **23,946,183 ** **23,479,127 ** 24,156,515
Scope 2 (electricity, grid average)
Property 1,844 1,364 1,365 1,363 1,539 1,445 7,214,939 5,848,518 6,429,501 7,046,786 7,430,523 7,479,163
Total Scope 2 1,844 1,364 1,365 1,363 1,539 1,445 7,214,939 **5,848,518 ** 6,429,501 **7,046,786 ** **7,430,523 ** 7,479,163
Scope 3
Business Travel In Employee
Owned Cars		 96 52 55 93 110 108 262,475 143,501 148,290 254,446 298,705 286,596
Total Scope 3 96 52 55 93 110 108 262,475 143,501 148,290 254,446 298,705 286,596
Total (Grid Average) 6,217 5,735 5,632 5,841 5,959 6,041
Intensity Ratio
(Tonnes CO2eper employee)		 3 3 3 3 3 3
Total energy Consumption 30,677,775 **29,206,340 ** **29,461,716 ** **31,247,415 ** **31,208,355 ** 31,922,274

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----- Start of picture text -----
GHG Emissions (TO2e) Energy Consumption (KWh)
6400 33,000,000
6200 32,000,000
6000 31,000,000
5800 30,000,000
5600 29,000,000
5400 28,000,000
5200 27,000,000
5000 26,000,000
Business Travel In Employee Business Travel In Employee
Owned Cars Owned Cars
Company Fleet (Petrol & Diesel) Company Fleet (Petrol & Diesel)
Property Property
----- End of picture text -----

Our total energy consumption has Increase by 4.1% compared to our 2019/20 baseline. Total carbon emissions have reduced by 2.8% and our intensity of Tonnes CO2e per employee by 5.1%.

We have made a small amount of progress reducing carbon emissions from our properties. However, emissions from fleet have increased significantly by 119%.

Progress by area

Property:

Actions:

Fleet:

Actions:

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Colleague engagement:

Engaging our staff and volunteers on this agenda is very important to us. We are currently developing a Care for Creation training module that will be rolled out early next year for both current and new staff and Officers.

We provide updates throughout the year through our intranet, weekly internal newsletters and articles in our Salvationist Magazine.

Wider strategy

This report covers a small part of our sustainability and carbon reduction programmes Read more about the work we are doing in our Net Zero Strategy 2040 and Carbon Management Plan 2024-27.

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REVIEWING FINANCES

Income

Charitable activities:
Centres’ revenue income
Other social operations
Housing association turnover
Legacies and donations
Grants from The Salvation Army Trust
Investment and rental income
Disposal of fixed Assets
Total income		 2025
£m
97.0
81.2
28.5
206.7
3.3
26.2
4.6
(1.1)
239.7		 2024
£m
90.8
86.9
27.5
205.2
2.8
29.7
3.4
(1.1)
240.0

Centres’ revenue income

The main elements are:

Other social operations

The main elements are:

Our Employment Plus team provides services to help unemployed people into work through several Work Programme contracts where The Salvation Army is a subcontractor. Income fluctuates as it is dependent on the number of referrals and on clients securing and retaining employment.

We provided support to the victims of modern slavery under a contract with the Ministry of Justice.

Housing Association turnover

This represents the turnover of The Salvation Army Homes (SAH), a subsidiary of the Social Work Trust, adjusted to reflect the accounting policies and reporting requirements of the Social Work Trust.

Legacies and donations

Legacies of £1.1m and donations of £2.2m were received in the current year.

Grants from The Salvation Army Trust

The Salvation Army Trust provides financial support to the Social Work Trust. This includes the Big Connection Appeal which is an annual appeal undertaken by corps (church) members specifically for social work programmes.

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Expenditure

Charitable activities:
Centres’ operations
Other social operations
Housing association cost
Cost of raising funds
Total expenditure		 2025
£m
118.4
84.6
31.9
234.9
0.1
235.0		 2024
£m
114.4
90.8
26.3
231.5
0.1
231.6

Centres’ operations

This represents the operating costs of care homes for older people, Lifehouses, detox centres, day care centres and other non-residential projects.

Other social operations

The increased costs reflect the increase in the number of victims of trafficking being helped by our service as well as Employment Plus and the Family Tracing Service.

Net gains/(losses) on investments

There has been an unrealised loss on investments of £1.0 million (2024: gain of £20.2 million). This comprises a £0.2m gain in value of the Salvation Army Homes’ investment property at Waterloo, London with aggregate unrealised losses on the Trust’s investment portfolios of £1.2m.

Funds

The Social Work Trust (excluding SAH results), excluding its investment losses of £1.2 million (2024: gains of £17.2 million), has generated a surplus of £3.7 million compared to a surplus of £9.2 million in the previous year.

Total funds at the year-end were as follows:
Endowment funds
Restricted funds:
Social Work Fund
Social Work projects
Saha operations
Total restricted funds
Unrestricted funds:
Designated funds
Unrealised investment gains
General reserve
Total unrestricted funds
Total funds		 2025
£m
18.7
86.9
39.7
132.4
259.0
48.4
98.4
22.5
169.3
447.0		 2024
£m
19.0
80.3
40.2
130.8
251.3
51.8
100.2
20.7
172.7
443.0

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Endowment funds

All endowment funds are represented by investment in the Common Investment Funds and the movement is due to the increase in market value of the investments. The capital value of the funds is retained but the income is applied to fund our work.

Restricted funds

Social Work Fund represents property assets including Lifehouses, care homes and other properties used for the operations of the parent charity. These funds are not therefore available to spend. Funds restricted for social work projects represent legacies and donations given for specific purposes.

All SAH funds are treated as restricted in the group accounts.

Unrestricted funds

Designated reserves

The levels of designated funds are reviewed annually. These are funds set aside by the directors for new projects and to meet known future commitments such as maintenance of our properties. These funds are kept under review by SATCO to ensure their purpose remains in the medium term. There is a major components reserve utilised for larger building projects addressing the necessary investment in properties within the Social Work Trust.

Unrealised gains

These are gains and losses as a result of market value fluctuations which have not yet been realised.

General reserve

This represents funds which are freely available for the general purposes of the charity.

RESERVES POLICY

Our reserves policy focuses on the level of general reserves.

We work with vulnerable and disadvantaged members of society, principally through our residential centres. We need reserves so that we can maintain continuity of our services in the event of a decrease in income or unexpected expenditure.

The directors have reviewed the main income streams, the risks associated with them, the main categories of expenditure and the extent to which these can be curtailed if required. A considerable proportion of our income is received under contract from local authorities. As such this is subject to regular competitive tendering and to changes in central and local government policies. The Trust also receives a grant from its sister trust – The Salvation Army Trust - generated from its fundraising to support the work of the Trust. There is a much smaller portion of income that is voluntary income which can be uncertain and fluctuate from year to year.

The total value of funds held as at 31 March 2025 was £447m (2024: £443m). There are restricted reserves of £259m (2024: £251m), unrestricted reserves of £169m (2024: £173m), and endowment reserves of £19m (2024: £19m).

The unrestricted funds include general reserves, designated funds, and the unrealised investment gains reserve. General reserves are utilised to fund the day-to-day needs of The Salvation Army. These were £22.4m as at 31 March 2025 (2024: £20.7m). The designated funds are unrestricted but

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set aside by the directors for specific purposes, £48.4m (2024: £51.8m). The unrealised investment gains reserve totalled £98.4m (2024: £100.2m).

General reserves at the year-end were £22.4m which is within the target range of £9.6m to £22.4m. The target range is modelled looking at income and expenditure with an associated risk factor (correlated with a higher likelihood of an adverse outcome) considered annually and duly reflected in the annual Reserve Policy. Like other charitable organisations, we are facing increased costs from high inflation as well as a challenging fundraising environment as the cost-of-living crisis continues to bite. A small deficit budget has been approved for 2025/26 leaving the general reserve within the upper quartile of the range which is considered prudent in the current economic climate. The Trustee reviews the reserves policy on an annual basis taking account the changing internal and external risk factors.

INVESTING FOR THE FUTURE

The charity holds its investments in The Salvation Army Common Investment Funds. These funds were set up under Schedule 2 of The Salvation Army Act 1980 to act as common investment schemes for certain Salvation Army Trusts.

The Salvation Army Common Investment Fund (No 1) consists of permanent endowments which are restricted by the wishes of the donor. In most cases the income is to be used for restricted purposes. The Salvation Army Common Investment Fund (No 2) is operated for those Salvation Army Trusts without permanent endowments. Both funds are managed by The Salvation Army Trustee Company. Cazenove Capital Management manages CIF1 and 50 per cent of CIF2, whilst Sarasin & Partners LLP manage 50 per cent of CIF2.

The funds are subject to The Salvation Army Act 1980 and the following guidelines:

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managers are required to monitor companies in the portfolios to ensure best practice in corporate governance, employment conditions and environmental sustainability

The Funds’ benchmark and ranges of distribution are as follows:

Asset Class Benchmark Range
% %
Equities:
Global 100 +/-10
Bonds 0 +10
Cash 0 +10
100

The aims and objectives of the Common Investment Funds are as follows:

CIF1

Fund strategy is:

The performance objective of the Fund is to achieve an annual total return which exceeds the composite benchmark below by at least 1.25 per cent per annum, gross of fees, measured over rolling three-year periods.

Asset Class Performance Benchmark
UK Equities FTSE All-Share
Europe (exUK)Equities FTSE All WorldDevelopedEurope (exUK)
Emerging Markets Equities FTSE All World Emerging Markets
Asia Pacific Equities FTSE All World Developed Asia Pacific
United States Equities S&P 500
Property AREF/IPD UK Quarterly All Balanced Property Fund

CIF2

The Fund strategy is to aim for capital growth rather than income. The performance objective of the Fund, excluding cash and gilts under lien, is to achieve an annual total return which exceeds the composite benchmark below by at least 1.25 per cent per annum, gross of fees, measured over rolling three-year.

Asset Class Performance Benchmark
UK Equities FTSE All-Share
Europe (ex UK) Equities FTSE All World Developed Europe (ex UK)
Emerging Markets Equities FTSE All World Emerging Markets
Asia Pacific Equities FTSE All World Developed Asia Pacific
United States Equities S&P 500

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Property IPDUK Property
Cashand gilts underlien FTSEGilts under5 years

Performance for the year compared to the benchmark was as follows:

CIF1 CIF1 CIF1 CIF2 CIF2 CIF2
2025 2024 2023 2025 2024 2023
% % % % % %
Annual total return (gross of fees) (0.7) 16.9 4.0 (0.9) 14.4 1.1
Benchmark return 4.9 20.6 (2.6) 0.8 20.6 (2.6)

The performance is being monitored on a regular basis through discussions with the respective investment fund managers.

In absolute terms the performance of the Common Investment Funds for the year was as follows:

CIF1 CIF1 CIF1 CIF2 CIF2 CIF2
2025 2024 2023 2025 2024 2023
% % % % % %
(Decrease)/Increase in capital
value of fund		 (0.5) 18.64 2.9 (0.7) 12.8 (0.1)
Average net income return 0.7 1.37 0.5 0.8 0.8 0.7

STRUCTURE, GOVERNANCE AND MANAGEMENT

The United Kingdom and Ireland Territory is under the command of a Territorial Commander, appointed by the General and responsible to him/her for the day-to-day administration of Salvation Army work throughout the British Isles, including the Channel Islands, the Isle of Man, and the Republic of Ireland.

The Salvation Army’s property in the United Kingdom Territory is held by The Salvation Army Trustee Company (SATCo), a company limited by guarantee, registered in England (No 00259322), with its registered office at 1 Champion Park, London, SE5 8FJ.

The two main trusts under which The Salvation Army in the United Kingdom operates are:

  1. The Salvation Army Social Work Trust, whose accounts are contained in this Report.

  2. The Salvation Army Trust, Charity Registration No 214779 in England and SCO09359 in Scotland.

The governing document of The Salvation Army Trust is The Salvation Army Act 1980, as amended. Under Section 12(1) (a) The Salvation Army Trustee Company is appointed as the sole ordinary trustee of the trusts listed in Schedule 5 to that Act.

The governing document of The Salvation Army Social Work Trust is the Deed Poll dated 30 January 1891, and a supplementary deed dated 26 March 1969.

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The Salvation Army Social Work Trust acts as managing agent for a number of projects on behalf of several registered housing associations, including Salvation Army Homes.

Salvation Army Homes

The Salvation Army Social Work Trust has the power to exercise control over Salvation Army Homes (SAH). SAH is registered with the Co-operative and Community Benefit Societies Act 2014 and is a registered social landlord regulated by The Regulator of Social Housing.

RISK MANAGEMENT

The Salvation Army identifies, assesses, and manages risks that could impact its activities so it can better achieve its objectives, comply with relevant laws and regulations, and safeguard its funds and assets.

The Board (SATCo) has ultimate responsibility for overseeing risk management, in accordance with Charity Commission guidance (CC26). The Risk Management Committee (RMC) directs an enterprisewide risk management programme to inform decision making and ensure effective procedures to identify and evaluate risks and implement effective controls.

The RMC considers the most recent developments in the most significant risks, while also prioritising broader developments to The Salvation Army’s approach to risk management. Current plans include promoting a deepening appreciation of the complexities of risk management within a wide-ranging structure, the importance of metrics to inform risk management and the implications of macro and global risks that may have consequences for the organisation.

Risk management operates through a top-down review by the RMC and bottom-up review by individual functions, enabling the identification and prioritisation of key and emerging risks. This enables site and service-specific concerns to be identified and managed, whilst retaining high-level oversight and assurance of the most significant risks facing the organisation. The RMC reports to the Board at least once yearly on key risks. Through this risk management process the directors have considered the major risks facing the organisation and satisfied themselves that controls are established to manage them.

Unfortunately, the nature of our work means that despite the steps we take, serious incidents can still arise, and we continue to place the utmost importance on reporting these to our regulators.

Principal risks

The Salvation Army’s work is diverse, geographically spread across a broad range of settings and has a variety of beneficiaries. The risk landscape is therefore varied, and controls are deployed appropriately at various levels of the organisation. The following outline indicates the most significant risks in the reporting period, and some of the strategic level mitigations we have in place.

Principal Risks Mitigation
Business Continuity - There is a risk
of the occurrence of a significant
incident where, during and after the
incident, The Trust will not be able
to continue to be viable and meet
stakeholder expectations.		 Business continuity policies and procedures,
including the application of ISO27001 for some parts
of the organisation, prepare us for management of
interruptions.

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We deploy multiple measures to protect our systems Cyber - The risk is that we fail to and the information they hold. We work within an protect our information systems and information security international standard the information they hold. (ISO27001) and build on lessons from our internal and external audits in this area As well as our data protection/GDPR policies and Data Protection - The risk that we training we take steps to ensure that personal data fail to protect sensitive and personal is treated properly through appropriate security data. measures, staff training, the use of data protection impact assessments and contractual requirements with organisations we work with who process our personal data. We continue to monitor the funding situation and Financial Sustainability - The risk adjust our financial planning and commitments that there is insufficient revenue accordingly to ensure we are financially resilient. income from donations, legacies, grants, and reserves to support our operating model resulting in the failure of the Trust to thrive in a rapidly changing environment. We continue to maintain clear policies and Safeguarding - The risk is that we procedures in relation to safeguarding and ensure fail to provide a safe environment, the appropriate screening, training, and supervision free from abuse, for everyone, of personnel. A subcommittee of RMC – the including vulnerable beneficiaries. Territorial Safeguarding Committee - oversees management of the risk. Comprehensive policies, procedures, and guidance Safe Mission – The risk is that we are are in place, alongside a supervisory control not able to ensure the health, safety framework. and welfare of personnel, service Two RMC subcommittees – the Safe Mission Council users and members of the public and the Sudden Deaths Review Group – inform the who are affected by our activities. management of this risk.

RECRUITMENT AND APPOINTMENT OF DIRECTORS

There are 14 directors of Salvation Army Trustee Company (‘SATCo’, the sole trustee of The Salvation Army Social Work Trust), eight by virtue of their appointments within The Salvation Army. One director is a divisional leader responsible for one of The Salvation Army’s 14 divisions.

The other 5 directors are non-executive, each bringing expertise in a relevant field, as approved by The General – including property, finance, investments, or social services. The appointment of non-executive directors is made by SATCo on the recommendation of the Nominations Committee.

Training and Induction of Directors

The Company Secretary briefs new directors on their legal responsibilities and familiarises them with the Company’s governance folder (and previous Board Minutes). This includes the articles of association of SATCo, the Charity Commission’s essential trustee guidance, and other key documents and policies (including the Conflicts of Interest Policy). The Company Secretary regularly delivers a written governance update on relevant issues at each board meeting. Directors are also informed of and provided with the opportunity to attend several training sessions throughout the year.

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Organisational Structure and Decision Making

SATCo’s board (‘the Board’) is assisted by an Audit Committee, a Nominations Committee, an Investment Advisory Committee, and a Risk Management Committee. The Audit Committee comprises a non-executive director chair and up to three independent members with a remit to review The Salvation Army’s internal and external audit arrangements and consider reports issued by internal and external auditors including the annual financial statements. The role of the Nominations Committee is to recommend new non-executive Board members. The Investment Advisory Committee includes three external advisers in its membership and advises on appropriate investments. The Risk Management Committee’s role is outlined above under Risk Management.

The Board met bi-monthly during the year, with some additional meetings scheduled as required in this reporting year. In addition to its oversight and governance role, the following matters require consideration/approval by the Board:

The Board has delegated day to day operational matters to the Territorial Operations Board, under the leadership of the Chief Secretary.

Public Benefit

The Trustees confirm that they have given due consideration to the Charity Commission’s published guidance on the public benefit requirement under the Charities Act 2011.

We believe that in delivering public benefit we are effective because we bring the breadth of our capabilities to bear on the complex challenges being faced by our vulnerable clientele: the homeless, the oppressed through human trafficking, the elderly, and a suite of other communityfocused activities. The organisation’s strategy sets out how we meet those challenges to make a difference over the current decade and beyond. Find out more in the sections ‘Summary of what The Social Army Social Work Trust does,’ ‘In the Frontline Against Modern Slavery,’ ‘Giving Homeless People Help and Understanding,’ ‘Wider Work in Our Communities’ and ‘Looking Forward as a Movement.’

Remuneration of Key Management

Key management personnel of The Salvation Army comprise Salvation Army Officers and employees. Active Salvation Army Officers do not receive a salary; instead, they receive an allowance based on length of service and seniority of position and, as ministers of religion, are provided with furnished accommodation and a motor vehicle. The allowances received by officers in positions of key management range from £19,641.90 to £27,916.75 per annum. Further information is disclosed in Note 10 and 11 to the Accounts.

For employees, we are committed to ensuring a proper balance between paying salaries which will enable us to attract and retain staff of the appropriate calibre and careful stewardship of charitable funds. All senior salaries are benchmarked against senior staff salaries of comparable organisations in the not-for-profit sector.

48

RISK AND GOVERNANCE

The charity has a dedicated internal audit function that undertakes audits as agreed with the Audit Committee and maintains a detailed risk register that addresses the major risks that face the organisation and may impact its ability to achieve its objectives. The key risk register is subject to regular review by the Risk Management Committee in order to take account of emerging risks and changes in the risk profile. They meet quarterly. The risk register is tabled annually at the SATCo Board for information and review.

The Internal Audit department periodically reviews SATCo’s performance against the Charity Governance Code. The Internal audit department carried out a review in the period to 31 March 2024 and identified a number of minor improvements in line with best practise which SATCO acknowledge and will implement in the forthcoming Internal Audit review period.

Directors’ Responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

The law applicable to charities in England and Wales/Scotland/Northern Ireland 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:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The financial statements are published on The Salvation Army website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of The Salvation Army’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

On behalf of the Directors of The Salvation Army Trustee Company

12 December 2025

49

DIRECTORS

The current directors of The Salvation Army Trustee Company and those who held office during the financial year are as follows:

Commissioner Paul Main Chair Colonel Peter Forrest Deputy Chair Lieut-Colonel Paul Kingscott (appointed 10.05.24) Lieut-Colonel Nicholas Coke (appointed 05.07.24) Lieut-Colonel Lisa Lloyd Jones (appointed 12.09.25) Lieut-Colonel Mark Herbert Lieut-Colonel Andrew McCombe (until 31.10.25) Lieut-Colonel Beverley McCombe (until 31.08.25) Lieut-Colonel Dean Pallant (until 30.06.24) Lieut-Colonel Judith Payne (until 24.07.24) Lieut-Colonel Alan Read (until 01.05.24) Major Richard Bradbury (appointed 14.11.25) Major Amanda White (appointed 26.09.24) Ms Jennifer Laurent-Smart (appointed 26.09.24) Ms Helen O’Brien Mr Philip Edwards Mr Peter Gale Mr Andrew Stickland Mr Aidan Grills (appointed 10.05.24)

The Chief Secretary, Colonel Peter Forrest, is responsible for the day-to-day management of the charity.

- Committee Members (current, and those who were members during the period 1st April 2024 31st March 2025):

Territorial Operations Board

Colonel Peter Forrest (Chair), Major Kathy Betteridge (appointed 18.09.24), Major Kerry Coke (appointed 18.09.24), Major Jane Cowell, Mr Tony Daniels (until 04.09.24), Mr Miguel Fiallos, Mr Peter Grant, Ms Polly Hughes (appointed 18.09.24), Lieut-Colonel Mike LloydJones (until 26.03.25), Commissioner Jenine Main, Mr Mitch Menagh (until 04.09.24), Major Donald Montgomery (from 12.09.25), Ms Alex O’Hara, Major Tracy Palmer (from 12.09.25), Major Pam Pitt (from 01.07.24 to 13.08.25), Mr Nick Redmore, Lieut-Colonel David Shakespeare (until 12.09.25), Major Julian Watchorn, Major Richard Waters, Mr Julius WolffIngham (until 04.09.24).

Audit Committee

Mr Andrew Stickland (Chair), Mr Stephen Bright, Ms Hannah Greenfield (until 21.11.24, and then from 08.07.2025), Mr Mike Grills.

Investment Advisory Committee

Mr Peter Gale (Chair), Mr Mark Chaloner, Ms Mary Haly, Lieut-Colonel Paul Kingscott (appointed 18.04.24), Lieut-Colonel Alan Read (until 01.05.24), Mr Marcel Schuster, Major Richard Waters.

Nominations Committee

Commissioner Paul Main, Colonel Peter Forrest, Ms Mandeep Gill (from 12.09.25), LieutColonel Paul Kingscott (appointed 18.04.24), Lieut-Colonel Alan Read (until 01.05.24), Mr

50

Elliot Thomas (until 12.09.25). A non-executive director of SATCo also attends (dependent on the agenda).

Risk Management Committee

Ms Helen O'Brien (Chair), Major Richard Bradbury, ex-officio (from 01.11.25), Major Kerry Coke, Lieut-Colonel Nick Coke, ex-officio (appointed 01.07.24), Mandeep Gill (from 12.09.25), Lieut-Colonel Paul Kingscott, ex-officio (appointed 18.04.24), Lieut-Colonel Lisa Lloyd-Jones, ex-officio (from 01.09.25), Lieut-Colonel Mike Lloyd-Jones (from 12.09.25), Lieut-Colonel Beverley McCombe, ex-officio (until 31.08.25), Lieut-Colonel Drew McCombe, ex-officio (until 31.10.25), Major Donald Montgomery (from 12.09.25), Lieut-Colonel Dean Pallant, ex-officio (until 30.06.24), Major Sarah Price (until 12.09.25), Lieut-Colonel Alan Read, ex-officio (until 01.05.24), Lieut-Colonel Jonathan Roberts (appointed 01.09.24), Major Howard Russell (until 23.10.24), Mr Matthew Saxon, Lieut-Colonel David Shakespeare (until 12.09.25), Ms Lynette Sturgeon, Mr Elliot Thomas (until 12.09.25), Mr Daniel Wills, Mr Julius Wolff-Ingham.

Property Committee

Mr Philip Edwards (Chair), Colonel Peter Forrest, Mr Peter Grant, Major Kenneth Guest (from 20.10.25), Mr James Hodgson, Lieut-Colonel Mike Lloyd-Jones (from 20.10.25), Major Ian Mountford, Major Pam Knuckey (until 18.08.25), Major Annette Rieder-Pell, Major Mark Rose, Mr Nathan Slinn, Mr Olly Thorp.

Finance Committee

Mr Aidan Grills (Chair), Lieut-Colonel Jane Cowell, Lieut-Colonel Paul Kingscott, Mr Mitch Menagh, Major Howard Russell, Major Richard Waters, Mr Julius Wolff-Ingham.

Company Secretary

Ms Mandeep Gill is Company Secretary of The Salvation Army Trustee Company, having been appointed on 12.09.25. For the period 1st April 2024- 31st March 2025, Mr Elliot Thomas was the Company Secretary.

ADVISERS

Bankers

Reliance Bank Limited, Faith House, 23/24 Lovat Lane, London EC3R 8EB

Auditors

Crowe U.K. LLP, Statutory Auditor, Chartered Accountants, 55 Ludgate Hill, London EC4M 7JW

Solicitors

England and Wales: Slaughter and May, 1 Bunhill Row, London EC1Y 8YY Scotland: Blackadders, 5 Rutland Square, Edinburgh EH1 2AX

Investment Advisers

BWCI Consulting Limited, PO Box 68, Albert House, South Esplanade, St Peter Port, Guernsey GY1 3BY

Investment Managers

Cazenove Capital Management, 12 Moorgate, London EC2R 6DA Sarasin & Partners LLP, Juxon House, 100 St Paul’s Churchyard, London EC4M 8BU Legal & General Investment Ltd, One Coleman Street, London, EC2R 5AA

51

INDEPENDENT AUDITORS REPORT TO

THE TRUSTEES OF THE SALVATION ARMY SOCIAL WORK TRUST

Opinion

We have audited the financial statements of The Salvation Army Social Work Trust (‘the charity’) and its subsidiaries (‘the group’) for the year ended 31 March 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's or the group’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information contained within the Annual Report. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of trustee

As explained more fully in the trustees’ responsibilities statement set out on page 49, 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 the 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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members including internal specialists and significant component audit teams. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity and group operate, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005, together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Salvation Army Act 1980, General Data Protection Regulation (GDPR), CQC Regulations for service providers and managers, Health and Social Care Act, taxation legislation and employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of contract and grant income and centres’ resident charges income, the valuation and completeness of investment properties and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, internal audit, legal counsel and the Audit Committee about their own identification and assessment of the risks of irregularities, designing audit procedures over investment properties, contract and grant income and centres’ resident charges income, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, OSCR, CQC and reading Minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. 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.

Crowe U.K. LLP Statutory Auditor London

23 December 2025

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Crowe U.K. LLP is eligible for appointment as auditor of the charity under regulation 10(2) of the Charities Accounts (Scotland) Regulations by virtue of its eligibility under section 1212 of the Companies Act 2006.

55

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 March 2025

Note ENDOWMENT
£000		 RESTRICTED
£000		 UNRESTRICTED
£000		 2025 Total
£000		 2025 Total
£000		 2024
Total £000
INCOME AND ENDOWMENTS
Donations and Legacies
Grants Receivable: Salvation Army
Trust		 - - 26,237 26,237 29,698
Donations - 1,195 1,027 2,222 1,419
Legacies - 695 383 1,078 1,358
- 1,890 27,647 29,537 32,475
Charitable Activities
Centres' Operations
3		 - 63 96,920 96,983 90,751
Other Social Operations
4		 - 1,091 80,141 81,232 86,876
HousingAssociation Turnover
12		 - 28,453 - 28,453 27,525
- 29,607 177,061 206,668 205,152
Investments
5		 - 906 3,744 4,650 3,431
Gains/(Losses) on disposal of
fixed assets		 - (1,150) 22 (1,128) (1,098)
TOTAL INCOME - 31,253 208,474 239,727 239,960
EXPENDITURE
Raising Funds
Investment Management Costs - - 50 50 50
- - 50 50 50
Charitable Activities
Centres' Operations
6		 - 6,487 111,900 118,387 114,388
Other Social Operations
7		 - 170 84,502 84,672 90,828
Housing Association Operating
Costs
12		 - 31,926 - 31,926 26,305
Total charitable activities - 38,583 196,402 234,985 231,521
TOTAL EXPENDITURE
9		 - 38,583 196,452 235,035 231,571
Net Gains/(Losses) on
Investments		 (312) (85) (623) (1,020) 20,167
Net Income/(Expenditure) (312) (7,415) 11,399 3,672 28,556
Transfers Between Funds
22/23		 - 14,841 (14,841) - -
Actuarial Gains/(Losses)
on Defined Benefit Pension
Schemes
11		 - 265 - 265 (501)
Net Movement in Funds (312) 7,691 (3,442) 3,937 28,055
RECONCILIATION OF FUNDS
Total Funds brought forward 19,010 251,319 172,691 443,020 414,965
Total Funds Carried Forward 18,698 259,010 169,249 446,957 443,020

All income and expenditure has arisen from continuing activities. Detailed comparative information is provided in note 30. Notes 1 to 30 form an integral part of these accounts.

56

BALANCE SHEETS

AS AT 31 March 2025

Group
2025
2024
£000
£000		 Group
2025
2024
£000
£000		 Group
2025
2024
£000
£000		 Group
2025
2024
£000
£000		 Group
2025
2024
£000
£000		 Group
2025
2024
£000
£000		 Parent Parent Parent Parent
2025
£000		 2025
£000		 2024
Note £000
FIXED ASSETS
Tangiblefixed assets
Properties
13		 181,612 183,728 64,535 66,835
Property schemes in progress
14		 1,081 1,520 151 1,443
Motor vehicles and equipment
15		 1,850 1,441 500 88
Investments
16		 161,801 199,321 161,801 162,821
TOTAL FIXED ASSETS 346,344 386,010 226,987 231,187
CURRENT ASSETS
Stocks 211 206 211 206
Debtors
17		 31,900 87,314 27,223 84,658
Current asset investment 2,000 - 2,000 -
Short-term deposits 51,874 8,027 51,874 8,027
Cashat bank 54,274 23,866 28,676 19,510
140,259 119,413 109,984 112,401
CREDITORS:amounts falling due within
one year
18(a)		 (32,827) (43,743) (22,443) (31,609)
107,432 75,670 87,541
NET CURRENT ASSETS 80,792
TOTAL ASSETS LESS CURRENT
LIABILITIES		 453,776
(4,801)		 461,680
(15,799)		 314,528
-		 311,979
CREDITORS:amounts falling due after
more than one year
18(b)		 -
Defined benefit pensionscheme liability
11		 (2,018) (2,861) - -
TOTAL NET ASSETS 446,957 443,020 314,528 311,979
18,698
259,010
169,249		 19,010
251,319
172,691		 18,698
126,581
169,249
FUNDS
Endowment funds
21		 19,010
Restricted funds
22		 120,278
Unrestrictedfunds
23		 172,691
TOTAL FUNDS
24		 446,957 443,020 314,528 311,979

Notes 1 to 30 form an integral part of these accounts.

Approved on behalf of The Salvation Army Trustee Company on 12 December 2025 by:

_________ Colonel Peter Forrest (Director)

__________ Commissioner Paul Main (Director)

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CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 March 2025

2025 2025
2024
£000
£000
58,007
3,431
(7,177)
(748)
(5,732)
-
-
1,354		 2024
Notes
£000		 £000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by/(used in) operating activities
25		 (32,671)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment and rental income
4,650
Additions to properties
(6,247)
Additions to motor vehicles and equipment
(738)
Additions to schemes in progress
(1,024)
Placing of money on deposit
(2,000)
Proceeds of disposal of investments
36,500
Proceeds ondisposals ofproperty
1,911
Net cash provided by/(used in) investing activities 33,052
(1,371)
(2,473)
3,500		 (8,872)
CASH FLOWS FROM FINANCING ACTIVITIES:
Interest payable
(1,091)
Repayment of loans
(15,714)
Cash inflowfrom new loans
-
Net cash (used in) financing activities (16,805) (344)
**Change incash and cash equivalents inthe year ** 74,255 (41,887)
Cash and cash equivalents at the beginning of the year 31,893 73,780
Cash and cash equivalents at the end of the year 106,148 31,893

ANALYSIS OF CHANGES IN NET DEBT

ANALYSIS OF CHANGES IN NET DEBT
Balance
1 April 2024
Cash-Flows
Non-cash
flows
Balance
31 March
2025
£000
£000
£000
£000
Cash at bank 23,866
30,408
-
54,274
Short term deposit 8,027
43,847
-
51,874
Total cash and cash equivalents 31,893
74,255
-
106,148
Loans falling due within one year (4,825)
4,825
(109)
(109)
Loansfalling due after more thanone year (15,799)
10,889
109
(4,801)
11,269
89,969
-
101,238

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2025

1. CHARITY INFORMATION

The Salvation Army in the UK is an integrated, yet diverse, organisation that contributes to the betterment of society in the service of God and people. Legally we are structured under two main trusts. These are:

These financial statements are for The Salvation Army Social Work Trust (‘Social Work Trust,’ ‘the Trust’). The address of the registered office is 1 Champion Park, London, SE5 8FJ.

2. ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial statements for the Social Work Trust, which have been consistently applied, are as follows:

(a) Basis of Accounting

The accounts (financial statements) have been prepared in accordance with Financial Reporting Standard 102, the Financial Reporting Standards applicable in the UK and the Republic of Ireland and Charity SORP (FRS102) applicable to charities preparing their accounts in accordance with FRS102, The Salvation Army Act 1980, the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the previous Statement of Recommended Practice: Accounting and Reporting by Charities which was effective from 1 April 2005 but which has since been withdrawn.

Social Work Trust 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).

(b) Going Concern

The Trust has felt the financial impact of global economic factors, particularly the high inflation rates on our cost base plus the related cost of living crisis. At the time of writing, inflation in the UK is 3.6%. The Bank of England projects that inflation will fall to around 2% by mid-2026, but this remains a watching brief with the current instability arising through the trade tariffs being imposed by the USA and the global political unrest. The organisation anticipates that the trading environment will continually be challenging. The Trust has a significant contract with the Home Office, £79.0m (2024: £76.0m) which supports the Anti-Human Trafficking Programme. This equates to 90.9% (2024: 87.5%) of the Other Social Operations income stream, and should this contract be terminated; it would also mean that £76.8m expenditure (2024: £82.2m) would no longer be incurred. The Trust could continue to operate without a significant impact upon other service deliverables.

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Financial projections and other supporting financial models that detail potential financial impacts upon the Social Work Trust, are reviewed on a regular basis by the operational boards as well as further scenario planning to assess the potential short, medium, and long-term financial implications of other risks and opportunities. Albeit this is currently undertaken on a lower-level scale.

Looking ahead, we plan to better utilise the financial reserves to support the organisation and where necessary invest in strategic priorities. This financial year, 2024-25 saw us continuing to spend on our strategic aims and utilising reserves to do this where possible. The closing unrestricted reserves were £169m (2024: £173m) and the cash and bank balances were £54.3m (2024: £23.9m). The significant increase in cash is due to significant funds being generated from investment property disposals in the year and the £35m deposit held by The Salvation Army Trust on behalf of the Social Work Trust in the prior year which was transferred over this year. Based on cash flow forecasts prepared covering the period to 31 March 2027, the Directors have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of approval of these financial statements and are not aware of any material uncertainties that may adversely affect the organisation. Accordingly, the financial statements will continue to be prepared on the going-concern basis.

(c) Basis of Consolidation

Social Work Trust has one subsidiary entity, the Salvation Army Homes (‘SAH’). SAH is a charitable provider of supported housing and support services across England, registered under the Cooperative and Community Benefit Societies Act 2014 (registration no. 15210R) and is also registered with the Regulator of Social Housing (registration no. LH 2429). SAH has one active subsidiary, Kingsown Property Limited, and one dormant subsidiary, SAH Developments Limited, whose results are consolidated in the SAH financial statements. The accounts of The Salvation Army Social Work Trust consolidate SAH’s accounts using the acquisition method. The Statement of financial activities (SOFA) and balance sheet consolidate, on a line-by-line basis, the financial statements of the Trust and its subsidiary undertakings. The Trust has taken advantage of the exemption in FRS102 from the requirement to prepare a charity-only cash flow statement and certain disclosures about the Trust’s financial statements.

(d) Critical accounting judgements and key sources of estimation uncertainty

In the application of the Trust’s accounting policies, Directors of the sole trustee are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies and are summarised below:

(ii) Defined Benefit Obligation The Salvation Army Social Work Trust contributes to the underlisted defined benefit pension or similar schemes in respect of its staff:

60

as the rate of inflation. The Fund has a funding surplus; no deficit funding provision is required although variation in these assumptions may significantly impact the surplus (as analysed in Note 11(i).

After initial recognition, investment property is measured at its fair value which is determined by members of staff with relevant experience and qualifications, and the valuation is performed using open market data for comparable properties. The property will be valued at each subsequent reporting date.

(e) Income

All income is included in the SOFA when the Trust is entitled to the income, receipt is probable, and the amount can be measured reliably. Income includes:

Legacies income is recognised when it satisfies the following criteria:

61

against income of between 5% and 20% per estate (10% from October 2024), based on the individual circumstances of each estate. This estimate has been revised during the current year to reflect management’s best estimate of final estate values to be received.

The estimated value of legacies notified, but neither received nor included in income, is £nil (2024: £0.6m).

(f) Expenditure

Expenditure is charged on the accruals basis when a legal or constructive obligation arises, and when the amount can be measured reliably. Irrecoverable Value Added Tax is charged to the related expenditure. Total expenditure includes:

(g) Pension and Similar Costs

The Salvation Army Social Work Trust contributes to three pension or similar schemes in respect of its staff:

The Salvation Army Officers’ Pension Fund was established by The Salvation Army Act 1963 under the legal name, The Salvation Army Officers Pension Fund. It is a registered charity and retirement benefits are not guaranteed and are paid at the discretion of the

62

Board of the Fund. It is non-contributory and has historically been funded by Salvation Army trusts (including The Salvation Army Trust and The Salvation Army Social Work Trust); however, there have been no payments made to the Fund during the current year. Officers that serve in the principal Trusts (The Salvation Army Trust and The Salvation Army Social Work Trust) may receive a retirement allowance from the Fund in the future, although, it is not possible to allocate the assets and constructive liabilities of the Fund between the Trusts. Therefore, the Fund is accounted for in a similar way as a multiemployer pension fund.

The Salvation Army Employees’ Pension Fund is a defined benefit scheme. The Trust is not the only participating employer in the Fund and it is unable to determine its share of the underlying assets and liabilities on a consistent and reasonable basis. This is because contributions paid into the Fund have not been invested separately from those paid by other employers participating in the Fund. As such, no separate fund is identifiable in respect of the Trust. To determine a current fund for each participating employer it would be necessary to separately account for contributions, benefit payments and investment returns for each participating employer.

Under the terms of the Fund, the assets and liabilities are pooled amongst the participating employers. If a participating employer were to cease to participate then that employer would be required to pay a debt, via a Section 75 Debt, to fully fund their share of the Fund’s liabilities. The Trust would not be liable for another employer’s debt but has an option to assume responsibility under an apportionment arrangement.

The Fund closed to the future accrual of pensionable service with effect from 30 April 2023 and therefore regular employer contributions ceased on this date.

A full actuarial valuation of the Fund was carried out at 31 March 2021 by the Fund Actuary. The valuation disclosed a past service surplus of £2.5m.

An update of the funding position as at 31 March 2025 was carried out by the Fund Actuary. This showed that the past service surplus had increased from £2.5m to a surplus of £52.8m on the 2021 valuation basis.

Since 1 January 2012, employees joined The Salvation Army Employees’ Defined Contribution Scheme.

In addition, Salvation Army Homes participates in three pension or similar schemes in respect of its staff.

The Salvation Army Homes (SAH) participates in the following pension schemes: 

  - (i) Social Housing Pension Scheme, a multi-employer defined benefit scheme. Management's estimate of the defined benefit obligation is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the liability and the annual defined benefit expenses. The net defined benefit pension obligation at 31 March 2025 was £2,018,000.

  - (ii) The auto-enrolment SHPS defined contribution pension scheme, the contributions on which are charged when payments to the pension scheme fall due.

  - (iii) The Pension Trust Growth Plan, a multi-employer defined benefit scheme. The pension charge represents the amounts payable by the company to the scheme in respect of the year. In the past, this scheme included a defined benefit element as the pensions were index linked, so where there is a contractual obligation to make payments under a deficit reduction plan in respect of the former defined benefit element of the scheme, this has been recognised as a liability in full in the financial statements.

63

All properties are disclosed at cost less accumulated depreciation other than SAH properties at the dates of acquisition (19 January 2011 and 2 March 2017) which were brought into account at those dates at fair values (being an existing use social housing valuation (EUV – SH) prepared by independent chartered surveyors). These properties are subsequently depreciated at the rates indicated below.

ght-line method, as follows
Freehold Land Not depreciated
Building – Main Fabric (structure) 50 years
Major Components
Roof structure and covering 50 years
Bathrooms and WCs 20-30 years
Lifts 25 years
Mechanical and Electrical Systems 25 years
Windows and External Doors 25 years
Kitchens 20 years

Short leasehold properties are depreciated over the term of the lease.

(iv) Depreciation is provided on other tangible fixed assets at the following rates:

Motor Vehicles - 3-4 years Office Equipment - 3-10 years

(i) Investments and Investment Properties

To comply with the Charities SORP, investments are included at fair value (their market value bid price). Realised gains on investments are calculated as the difference between sales proceeds and the market value of those investments at the beginning of the accounting period.

The Salvation Army Social Work Trust holds some investment properties, and its subsidiary SAH owns properties held for market rent or commercial lettings and these are included as investment properties and are recorded at fair value with changes in the market value reported annually in the statement of financial activities. The fair value of the investment property is determined by members of staff with relevant experience and qualifications. The residential investment properties have been valued by the comparable method of valuation in accordance with The Royal Institution of Chartered Surveyors comparable evidence in real estate valuation – Professional Standard , using a market approach. These valuations have been benchmarked using a data system called Sprift.

A valuation by an independent valuer was not performed.

(j)

Stocks

Stocks are valued at the lower of cost and net realisable value.

64

(k) Cash, short-term deposits and current asset investments

Cash include cash in hand, deposits with banks and funds that are readily convertible into cash at, or close to, their carrying values, but not held for investment purposes. Short-term deposits are amounts not accessible for a period of up to 3 months. Current asset investments are amounts not accessible for a period of between 3 months and 12 months.

(l) Funds

Unrestricted Funds include:

(m) Financial instruments classification

All financial instruments, including loans, are classified as ‘basic.’ Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method.

Financial assets held at amortised cost comprise cash at bank and in hand, together with trade debtors, other debtors, and accrued income. Financial assets held at fair value include investments including investment property, excluding cash held as part of the investment portfolio.

Financial liabilities held at amortised cost comprise trade creditors, other creditors, and accruals.

65

3. CHARITABLE ACTIVITIES: CENTRE OPERATIONS

2025
Maintenance
& Special
Care Allowance
Supporting
People
Local
Authority
& Other
Grants
Catering &
Miscellaneous
Income
Total		 2024
Total
£000
£000
£000
£000
£000		 £000
Social services centres:
Older people 17,318
-
31
85
17,434		 15,805
Single homeless 13,292
12,137
485
281
26,195		 24,138
Family and children 2,015
2,545
657
488
5,705		 5,372
Day care -
267
-
36
303		 293
Addictions 784
778
14
6
1,582		 1,632
Other non-residential programmes 24
1,186
1,570
1,643
4,423		 4,153
33,433
16,913
2,757
2,539
55,642		 51,393
Housing association centres:
Older people 1,331
-
-
23
1,354		 1,172
Single homeless 26,265
10,345
743
488
37,841		 35,879
Family and children 1,108
605
80
12
1,805		 1,789
28,704
10,950
823
523
41,000		 38,840
Social enterprise 1
-
84
256
341		 518
Total 2025 62,138
27,863
3,664
3,318
96,983		 90,751
Total 2024 56,982
26,221
3,969
3,579		 90,751

Income of £63,000 (2024: £281,000) is restricted.

£215,000 (2024: £105,000) of government grants, £2,140,000 (2024: £2,541,000) of local authority grants and £918,000 (2024: £971,000) of other grants were received for outsourced services performed by the Trust on behalf of local authorities and other government bodies. There were no unfulfilled conditions relating to these grants. Also see Note 4 for details of other government grants received.

66

Social services centres
Older people
Single homeless
Family and children
Day care
Addictions
Other non-residential programmes
Housing association centres
Older people
Single homeless
Family and children
Social enterprise
Total 2024		 ------------------------------------------------------2024 --------------
Maintenance
& Special
Care Allowance
Supporting
People
Local
Authority
& Other
Grants
£000
£000
£000
15,686
-
9
11,763
11,193
459
1,878
2,374
764
-
250
-
811
782
32
159
1,039
1,523		 ------------------------------------------------------2024 --------------
Maintenance
& Special
Care Allowance
Supporting
People
Local
Authority
& Other
Grants
£000
£000
£000
15,686
-
9
11,763
11,193
459
1,878
2,374
764
-
250
-
811
782
32
159
1,039
1,523		 ----------------------------------
Catering &
Miscellaneous
Income
Total
£000
£000
110
15,805
723
24,138
356
5,372
43
293
7
1,632
1,432
4,153
30,297
15,638		 2,787 2,671
51,393
1,169
-
24,453
9,901
1,063
650		 -
1,109
29		 3
1,172
416
35,879
47
1,789
26,685
10,551		 1,138 466
38,840
-
32		 44 442
518
56,982
26,221		 3,969 3,579
**90,751 **

67

2025

2024

4. OTHER SOCIAL OPERATIONS

2025 2024
Maintenance
& Special		 Home Office
Local
Authority
& Other
Catering &
Miscellaneous
Care Allowance Contract
Grants
Income
Total		 Total
£000 £000
£000
£000
£000		 £000
Employment Plus - -
1,656
111
1,767		 1,430
Anti-Human Trafficking - 78,993
157
-
79,150		 85,198
Defence Services Operations - -
-
256
256		 211
FamilyTracing,Counsellingetc - -
-
59
59		 37
Total 2025 - 78,993
1,813
426
81,232		 86,876
Total 2024 - 75,989
1,446
9,441		 86,876

Local authority and other grants include £1,156,000 (2024: £889,000) of Employment Services Contracts and £468,000 (2024: £383,000) of government grants. There were no unfulfilled conditions relating to these grants.

Employment plus
Anti-human trafficking
Defence services operations
Family tracing, counselling etc
Total 2024		 ------------------------------------------------------2024------------------------------------------------
Maintenance
& Special
Care Allowance
Home Office
Contract
Local
Authority
& Other
Grants
Catering &
Miscellaneous
Income
Total
£000
£000
£000
£000
£000
-
-
1,272
158
1,430
-
75,989
174
9,035
85,198
-
-
-
211
211
-
-
-
37
37		 ------------------------------------------------------2024------------------------------------------------
Maintenance
& Special
Care Allowance
Home Office
Contract
Local
Authority
& Other
Grants
Catering &
Miscellaneous
Income
Total
£000
£000
£000
£000
£000
-
-
1,272
158
1,430
-
75,989
174
9,035
85,198
-
-
-
211
211
-
-
-
37
37		 ------------------------------------------------------2024------------------------------------------------
Maintenance
& Special
Care Allowance
Home Office
Contract
Local
Authority
& Other
Grants
Catering &
Miscellaneous
Income
Total
£000
£000
£000
£000
£000
-
-
1,272
158
1,430
-
75,989
174
9,035
85,198
-
-
-
211
211
-
-
-
37
37
-
75,989		 1,446 9,441
86,876

68

5. INVESTMENT INCOME

2025
2024
Restricted
Unrestricted
Total
Total
£000
£000
£000
£000
Dividends and interest receivable 906
3,247
4,153
2,754
Rents receivable -
269
269
439
Rental income from investment
properties		 -
228
228
238
906
3,744
4,650
3,431

69

6. ANALYSIS OF CENTRES’ OPERATIONS COSTS

2025 2024
Salaries &
Other Staff
Costs
Catering,
Cleaning &
Other
Services
Other
Operating
Costs
Property &
Furnishings
Support
Costs
Governance
Costs
Total		 Total
£000
£000
£000
£000
£000
£000
£000		 £000
Social services centres
Older people 16,603
1,175
958
4,496
2,381
323
25,936		 24,505
Single homeless 17,051
686
5,760
5,461
819
43
29,820		 28,114
Family and children 4,065
25
509
1,211
909
10
6,729		 6,006
Day care 558
17
37
152
125
1
890		 601
Addictions 1,669
4
169
355
244
4
2,445		 2,305
Other non-residential programmes 4,699
710
583
1,417
961
61
8,431		 9,839
44,645
2,617
8,016
13,092
5,439
442
74,251		 71,370
Housing association centres
Older people 1,173
111
314
164
306
3
2,071		 1,885
Single homeless 20,499
2,206
3,072
7,248
5,332
66
38,423		 37,830
Family and children 1,182
4
299
392
290
3
2,170		 2,289
22,854
2,321
3,699
7,804
5,928
72
42,678		 42,004
Social enterprise 291
209
71
735
111
41
1,458		 1,014
Total 2025 67,790
5,147
11,786
21,631
11,478
555
118,387		 114,388
Total 2024 61,423
4,874
18,253
18,517
10,660
661		 114,388

Governance costs include external audit fees, exclusive of VAT, of £361,875 (being £181,875 for the year ended 31 March 2025 and £180,000 for first year audit transition fees) (2024: £145,500) for the Trust, £53,040 (2024: £45,200) for SAH and £5,639 (2024: £6,273) for Kingsown Property Limited (subsidiary of SAH).

Non-audit service fees, exclusive of VAT, payable to the auditor were £86,889 (2024: £59,607) for the Trust, £Nil (2024: £Nil) for SAH and (£13,838) (2024: £4,418) for Kingsown Property Limited.

£6,487,000 (2024: £9,293,000) of centres’ operations costs are funded from restricted funds.

70

---------------------------------------------------------------2024----------------------------------------------------

Social services centres
Older people
Single homeless
Family and children
Day care centres
Addictions
Other non-residential programmes
Housing association centres
Older people
Single homeless
Family and children
Social enterprise
Total Costs 2024		 Salaries &
Other Staff
Costs
Catering,
Cleaning &
Other
Services
£000
£000
15,265
1,103
14,991
598
3,712
34
326
4
1,460
3
4,755
635		 Other
Operating Costs
£000
868
5,292
511
9
243
1,152		 Property &
Furnishings
£000
4,899
5,408
888
145
431
1,870		 Support Costs
Governance
Costs
Total
£000
£000
£000
2,285
85
24,505
1,451
374
28,114
853
8
6,006
116
1
601
165
3
2,305
1,415
12
9,839
40,509
2,377		 8,075 13,641 6,285
483
71,370
956
109
18,538
2,152
1,099
3		 345
9,406
346		 223
3,883
513		 250
2
1,885
3,678
173
37,830
325
3
2,289
20,593
2,264		 10,097 4,619 4,253
178
42,004
321
233		 81 257 122
-
1,014
61,423
4,874		 18,253 18,517 10,660
661
114,388

71

7. OTHER SOCIAL OPERATIONS

2025 2024
Salaries &
Other Staff
Costs		 Catering,
Cleaning &
Other
Services		 Other
Operating
Costs		 Property &
Furnishings		 Support
Costs		 Governance
Costs		 Total Total
£000 £000 £000 £000 £000 £000 £000 £000
Social Services Centres
Employment Plus
5,387
4
317		 69
158
3		 5,938 5,356
Anti-Human Trafficking
7,648
89
67,431		 1,661
153
1		 76,983 82,168
Defence Services Operations
217
109
24		 4
10
-		 364 327
FamilyTracing,Counsellingetc
891
3
485		 -
8
-		 1,387 2,977
Total 2025
14,143
205
68,257		 1,734
329
4		 84,672 90,828
Total 2024
14,259
198
75,071		 1,161
109
30		 90,828
Employment Plus includes a number of matched funding contracts.
-----------------------------------------------------------------2024-----------------------------------------------------------
Catering,
Salaries & Cleaning &
Other Operating
Other Staff Other Costs Property & Support Costs Governance
Costs Services Furnishings Costs Total
£000 £000 £000 £000 £000 £000 £000
Social services centres
Employment plus
4,905		 3 301 79 68 - 5,356
Anti-human trafficking
7,304		 87 73,652 1,060 35 30 82,168
Defence services operations
188		 100 29 4 6 - 327
Family tracing, counselling etc
1,862		 8 1,089 18 - - 2,977
Total costs 2024
14,259		 198 75,071 1,161 109 30 90,828

72

8. ANALYSIS OF SUPPORT COSTS

Support costs consist of: 2025
2024
£
£
Governance 424
357
Communications 189
132
Personnel 3,144
2,997
Business administration 7,799
7,084
Mission service management 251
199
Total 11,807
10,769

9. ANALYSIS OF TOTAL EXPENDITURE

2025
2024
Staff costs
Depreciation
Other Costs
Total
Total
£000
£000
£000
£000
£000
Raising funds -
-
50
50
50
Charitable activities 93,852
5,711
135,422
234,985
231,471
93,852
5,711
135,472
235,035
231,521

10. PERSONNEL

Allowances and salaries
Social security costs
Pension and similar costs
Temporary agency staff costs		 2025
2024
2025
2024
2025
2024
Parent
Parent
Subsidiary
Subsidiary
Total
Total
£000
£000
£000
£000
£000
£000
58,806
53,526
9,666
9,055
68,472
62,581
5,123
4,649
1,029
850
6,152
5,499
3,709
3,283
1,144
1,130
4,853
4,413
67,638
61,458
11,839
11,035
79,477
72,493
13,344
13,173
1,031
1,032
14,375
14,205

£3,144k (2024: £2,997k) of staff costs have been paid by SAT and recharged across.

Redundancy Costs

Redundancy costs relating to employees in the Social Work Trust, including SAH, amounted to £393,114 (2024: £347,703). Redundancy costs are recognised once a decision to make a post redundant has been communicated to an individual or the workforce. There are redundancy and termination payment liabilities of £Nil for 2025 (2024: £Nil).

The average number of officer and employees was:

Trust
Number of officers
Number of employees
Subsidiary
Total		 2025
2024
Headcount
Headcount
No.
No. (restated)
70
68
2,016
1,975
2,086
2,043
376
349
2,462
2,392

The comparatives have been restated due to an error in the calculation in the prior year.

73

Higher-Paid Employees

The following indicates the number of the group’s and parent’s employees earning between:

2025 2025 2025 2024
Parent Subsidiary Total Total
No. No. No. No.
£60,001 - £70,000 18 6 24 16
£70,001 - £80,000 15 2 17 6
£80,001 - £90,000 2 2 4 10
£90,001 - £100,000 2 1 3 1
£100,001 - £110,000 2 - 2 1
£110,001 - £120,000 1 - 1 -
£120,001 - £130,000 1 - 1 1
£130,001 - £140,000 - 1 1 -
£160,001 - £170,000 - 1 1 1
41 13 54 36

The directors of The Salvation Army Trustee Company comprise Salvation Army Officers and other external directors with specialist expertise. All active Salvation Army Officers receive an allowance based on length of service and, as ministers of religion, are provided with furnished accommodation and a motor vehicle. The allowances received by the officers serving as directors ranged from £19,641.90 to £27,916.75 per annum (2024: £20,280.32 to £24,939.79 per annum) and they did not receive any additional remuneration for their duties as directors. No allowances or salaries paid to any of the directors are charged direct to the Social Work Trust and therefore the cost is not included in the Trust’s Statement of Financial Activities but is disclosed in this note.

No expenses were incurred by the directors of The Salvation Army Trustee Company in relation to their role as directors.

The costs of indemnity insurance, to protect The Salvation Army Trustee Company directors against claims for neglect or default, were borne by The Salvation Army Trust.

Certain directors of SAH are remunerated. Lieut-Colonel Drew McCombe is a director of both SAH and of The Salvation Army Trustee Company. He is remunerated £5,000 (2024: £4,000) which is donated to The Salvation Army Trust. Mr. Philip Edwards is also a director of both SAH and of The Salvation Army Trustee Company, he is remunerated £6,000 (2024: £652).

Salvation Army Officers who are members of SATCO have 13 (2024: eight) family members who are officers and are paid an allowance in accordance with The Salvation Army Act. The allowances received by these family members ranged from £8,153.47 to £26,804.35 per annum in 2024/25 (2024: £4,538.84 – £18,531.47).

Key Management Personnel

The key management personnel of the Trust are those persons having authority and responsibility for planning, directing, and controlling the activities of the Trust, directly or indirectly. This is defined by the Trust as the directors of The Salvation Army Trustee Company as the Corporate Trustee of the Trust and the executive directors (officers and employees) of the Trust. The total aggregate remuneration, including employer National Insurance and pension contributions for the year paid to key management personnel during the year was £1,731,179 (£187,349 was paid by Social Work Trust and £1,543,830 was paid by Salvation Army Trust) (2024: £1,445,473).

11. PENSION AND SIMILAR COSTS

The Salvation Army Social Work Trust may make contributions to three pension or similar schemes in respect of its officers or staff:

Salvation Army Homes participates in the Social Housing Pension Scheme. Amounts charged in respect of pension fund contributions for the year are disclosed in Note 10 above.

74

• SALVATION ARMY OFFICERS PENSION FUND

The Salvation Army Officers Pension Fund (‘the Fund’) was established by The Salvation Army Act 1963 under the legal name, The Salvation Army Officers Pension Fund. It is a registered charity and retirement benefits are not guaranteed and are paid at the discretion of the Board of the Fund. It is non-contributory and is funded by Salvation Army Trusts (including The Salvation Army Trust and The Salvation Army Social Work Trust); however, there have been no payments made to the Fund during the current year. Officers that serve in the principal Trusts (The Salvation Army Trust and The Salvation Army Social Work Trust) may receive a retirement allowance from the Fund in the future, although, it is not possible to allocate the assets and constructive liabilities of the Fund between the Trusts. Therefore, as both Salvation Army Trust and Social Work Trust may contribute to the Fund, it is, for accounting purposes, disclosed and accounted for in a similar way to a multi-employer pension fund.

The Salvation Army Officers Pension Fund was subject to a triennial actuarial review on 31 March 2022. This actuarial valuation indicated that the Fund was in surplus on the funding basis. As such, no additional contributions are currently required to fund a deficit in the Fund. Following this valuation, it was also agreed that regular contributions into the Fund would cease until the next valuation as at 31 March 2025.

The calculations for the FRS102 disclosures have been carried out by running full actuarial calculations as at 31 March 2025 and the disclosures are shown below

The Fund is ordinarily funded by means of regular contributions to cover current retirement benefit accrual, with the rate of contributions determined at each triennial valuation. The funding method currently employed is the Attained Age Method which measures the increase in the funding target relating to future benefits expected to accrue to active Officers over the period to retirement or earlier leaving service. Additional contributions are made to cover any shortfalls that arise following each valuation. The Board of the Fund determine the level of contributions payable to it following agreement with the principal trusts of the Army and the advice of the Fund actuary.

There have been no amendments to the Fund during the year and no dedicated events have occurred.

Obligations for the Salvation Army in respect of the Salvation Army Officers Pension Fund

Fair Value of Fund Assets
Present value of funded obligations
Net overfunding in Fund
Unrecognised assets
Net Defined Benefit Asset		 31/03/2025
(£’000)
31/03/2024
(£’000)
240,454
258,768
(150,974)
(174,685)
89,480
84,083
(89,480)
(84,083)
-
-

The amounts recognised in the expenditure section of the Statement of Financial Activities are as follows:

Service cost
Administration expenses
Expense recognised in expenditure section of statement of
financial activities		 31/03/2025
(£’000)
31/03/2024
(£’000)
3,566
3,705
245
270
3,811
3,975

The net interest on net defined benefit liability item is broken down as follows:

Interest on obligation
Interest on assets
Net Interest on net defined benefit liability		 31/03/2025
(£’000)
31/03/2024
(£’000)
8,339
8,029
(12,459)
(12,412)
(4,120)
(4,383)

75

The amounts recognised as actuarial gains/(losses) are as follows:

Return on assets (not included in interest)
Actuarial gains on obligation
Change in asset ceiling value
Total amount recognised in actuarial gains/(losses)
Actual return on fund assets		 31/03/2025
(£’000)
31/03/2024
(£’000)
(21,415)
(13,011)
26,502
3,441
(1,276)
13,545
3,811
3,975
(8,956)
(600)

No contributions to the Fund were paid by the Army over the year from 1 April 2024 to 31 March 2025.

No contributions to the Fund are expected from the Army over the next year from 1 April 2025 to 31 March 2026.

Changes in the present value of the Fund's Defined Benefit Liability are as follows:

Opening defined benefit liability
Service cost
Benefits paid
Interest on obligation
Actuarial (gains) on fund liabilities
Closing defined benefit liability		 31/03/2025
(£’000)
31/03/2024
(£’000)
174,685
175,283
3,566
3,705
(9,114)
(8,891)
8,339
8,029
(26,502)
(3,441)
150,974
174,685

The weighted average duration of the liabilities of the Fund was 13 years as at 31 March 2025.

Changes in the fair value of Fund assets are as follows:

Opening fair value of fund assets
Interest on assets
Return on assets (not included in interest)
Contributions by employer
Benefits paid
Administration expenses		 31/03/2025
(£’000)
31/03/2024
(£’000)
258,769
268,529
12,459
12,412
(21,415)
(13,011)
-
-
(9,114)
(8,891)
(245)
(270)
240,454
258,769

The major categories of fund assets as a percentage of the total are as follows:

31/03/2025 (%) 31/03/2024 (%)
Equities 30.4 30.5
Index linked bonds 68.1 68.0
Cash 1.5 1.5

All of the Fund's assets have a quoted market price in an active market. The Fund does not hold any property or other assets used by the Army.

Principal actuarial assumptions used for the FRS 102 disclosures:

31/03/2025 (%) 31/03/2024 (%)
Discount rate at end of year 5.8 4.9
Discount rate at start of year 4.9 4.7
Inflation 3.05 3.5
Rate of increase in allowances 3.55 4.0

Mortality Assumptions

The mortality assumptions are based on standard mortality tables which allow for future mortality improvements.

The assumptions are that an officer aged 65 will live on average until age 88 if they are male and until age 89 if female.

76

For an officer currently aged 55, the assumptions are that if they attain age 65 they will live on average until age 88 if they are male and until age 90 if female.

• SALVATION ARMY EMPLOYEES’ PENSION FUND

The Trust is a participating employer of the Salvation Army Employees' Pension Fund ("the Fund"), a defined benefit scheme.

A valuation of the Fund for the purposes of these disclosures was carried out at 31 March 2025 by an independent actuary. The major assumptions used by the actuary, together with those used in the previous year, were: -

31 March 2025 31 March 2024
% pa % pa
Discount rate 5.8 4.9
RPI inflation rate 3.0 3.5
CPI inflation rate 2.6 3.2
Rate of increase in pensionable salaries 3.5 3.9
Rate of increase in pension payments 2.0 / 2.85 2.3 / 3.3

The major categories of the Fund’s assets as a percentage of the total Fund assets, were as follows:

31 March 2025 31 March 2024
% %
Gilts 76 47
Index-Linked Gilts 24 44
AVC’s - 2
Cash and Net Current Assets - 7

The following amounts at 31 March 2025 were measured in accordance with the requirements of FRS102.

Total market value of assets
Present value of funded obligations
Net overfunding in Fund
Unrecognised assets
Net Defined Benefit Asset		 £ million
164.45
(111.69)
52.76
(52.76)
0.00

The Fund operated by the Salvation Army is a defined benefit scheme. However, the Company is not the only participating employer in the Fund and it is unable to determine its share of the underlying assets and liabilities on a consistent and reasonable basis. This is because contributions paid into the Fund have not been invested separately to those paid by other employers participating in the Fund. As such no separate fund is identifiable in respect of the Company. In order to determine a current fund for each participating employer it would be necessary to separately account for contributions, benefit payments and investment returns for each participating employer. Under the terms of the Fund, the assets and liabilities are pooled amongst the participating employers. If a participating employer were to cease to participate then that employer would be required to pay a debt to fully fund their share of the Fund’s liabilities. The Company would not be liable for another employer’s debt but has an option to assume responsibility under an apportionment arrangement. The Fund closed to the future accrual of pensionable service with effect from 30 April 2023 and therefore regular employer contributions ceased on this date.

Due to the change in actuary in the year, the treatment of AVC’s in the fund assets and defined benefit obligations has changed from the prior year. The DC AVCs have been excluded from both the assets and defined benefit obligations in the current year whereas they were included in the prior year. The change in treatment has no impact on the overall net pension asset.

77

A full actuarial valuation of the Fund was carried out at 31 March 2021 by the Scheme Actuary. The valuation disclosed a past service surplus of £2.5m. An update of the funding position as at 31 March 2023 was carried out by the Scheme Actuary. This showed that the past service surplus had increased from £2.5m to a surplus of £65.5m on the 2021 valuation basis.

• SOCIAL HOUSING PENSION SCHEME (SHPS)

SAH participates in SHPS, a multi-employer pension scheme which provides benefits to non-associated participating employers. The scheme is classed as a defined benefit scheme in the UK. The scheme is classified as a ‘last man standing’ arrangement. Therefore, the Association is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. Under the defined benefit pension accounting approach, the SHPS net deficit as at 1 April 2024 is £2,861k and £2,018k as at 31 March 2025.

PRESENT VALUES OF DEFINED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND DEFINED BENEFIT ASSET/(LIABILITY)

Fair value of plan assets
Present value of defined benefit obligation
(Deficit) in plan
Deferred tax
Net defined benefit (liability) to be recognised		 2025
£000
11,811
(13,829)
(2,018)
-
(2,018)		 2024
£000
12,222
(15,083)
(2,861)
-
(2,861)

RECONCILIATION OF OPENING AND CLOSING BALANCES OF THE DEFINED BENEFIT OBLIGATION

Defined benefit obligation at start of period
Expenses
Interest expense
Actuarial losses/(gains) due to scheme experience
Actuarial (gains) due to changes in demographic
assumptions
Actuarial (gains) due to changes in financial
assumptions
Benefits paid and expenses
Defined benefit obligation		 2025
£000
15,083
15
725
253
-
(1,657)
(590)
13,829		 2024
£000
15,138
14
726
(43)
(174)
(35)
(543)
15,083

RECONCILIATION OF OPENING AND CLOSING BALANCES OF THE FAIR VALUE OF PLAN ASSETS

Fair value of plan assets at start of period
Interest income
Experience on plan assets (excluding amounts
included in interest income) – (loss)
Contributions by the employer
Benefits paid and expenses
Fair value of plan assets at end of period		 2025
£000
12,222
601
(1,139)
717
(590)
11,811		 2024
£000
12,287
602
(753)
629
(543)
12,222

78

The actual return on the plan assets (including any changes in share of assets) over the period ended 31 March 2025 was (£538,000) (2024: (£151,000)).

DEFINED BENEFIT COSTS RECOGNISED IN STATEMENT OF FINANCIAL ACTIVITIES

DEFINED BENEFIT COSTS RECOGNISED IN OTHER RECOGNISED GAINS
ASSETS
Expenses
Net interest expense
Total expense
Experience on plan assets (excluding amounts
included in net interest cost) – (loss)
Experience (losses)/gains arising on the plan liabilities
Effects of changes in the demographic assumptions
underlying the present value of the defined benefit
obligation – gain
Effects of changes in the financial assumptions
underlying the present value of the defined benefit
obligation – gain
Total amount recognised in other recognised
gains/(losses)
Global equity
Absolute return
Distressed opportunities
Credit relative value
Alternative risk premia
Liquid alternative
Emerging markets debt
Risk sharing
Insurance-linked securities
Property
Infrastructure
Private equity
Real assets
Private debt
Opportunistic liquid credit
High yield
Private credit
Credit relative value
Investment grade credit
Cash
Long-lease property
Secured income
Liability-driven investment
Currency hedging
Net current assets
Total assets		 AND LOSSES
2025
£000
15
124
139
2025
£000
(1,139)
(253)
-
1,657
265
2025
£000
1,323
-
-
-
-
2,190
-
-
36
592
2
10
1,414
-
-
-
1,446
452
364
160
3
197
3,577
19
26		 AND LOSSES
2025
£000
15
124
139
2025
£000
(1,139)
(253)
-
1,657
265
2025
£000
1,323
-
-
-
-
2,190
-
-
36
592
2
10
1,414
-
-
-
1,446
452
364
160
3
197
3,577
19
26		 2024
£000
14
124
138
2024
£000
(753)
43
174
35
(501)
2024
£000
1,218
477
431
400
388
-
158
715
63
491
1,235
10
-
481
478
2
-
-
-
241
79
365
4,974
(5)
21
11,811 12,222

79

None of the fair values of the assets shown above include any direct investments in the employer’s own financial instruments or any property occupied by, or other assets used by, the employer.

KEY ASSUMPTIONS

2025 2024
% per annum % per annum
Discount rate 4.82% 4.90%
Inflation (RPI) 3.10% 3.15%
Inflation (CPI) 2.79% 2.75%
Salary growth 3.79% 3.78%
Allowance for commutation of pension for cash at retirement 75% of maximum 75% of maximum
allowance allowance

The mortality assumptions adopted at 31 March 2025 imply the following life expectancies:

LOYER PENSION CONTRIBUTIONS
Male retiring in 2025
Female retiring in 2025
Male retiring in 2045
Female retiring in 2045
Defined benefit employer contributions including deficit
contributions
Growth Plan deficit contributions
Auto-enrolment & SHPS defined contribution including deficit
contribution		 Life expectancy
at age 65 (Years)
20.5
23.0
21.8
24.4
2025
2024
£000
£000
717
629
-
98
428
402
1,145
1,129		 Life expectancy
at age 65 (Years)
20.5
23.0
21.8
24.4
2025
2024
£000
£000
717
629
-
98
428
402
1,145
1,129
1,145
1,129

EMPLOYER PENSION CONTRIBUTIONS

The defined benefit pension costs for Salvation Army Homes were £717,000 (2024: £629,261). The pension cost is assessed in accordance with the advice of a qualified actuary using the Projected Unit Fund Method and is not materially different from that arising from the current employer’s contribution rate.

THE GROWTH PLAN

Until 2022-23, Salvation Army Homes participated in a multi-employer Growth Plan Scheme. Following the last member leaving the scheme, the plan was considered closed. In 2024-25, 90% of the due liability was repaid, amounting to £325,000. There remains a liability of 10% due to be paid.

AUTO-ENROLMENT

As a result of the introduction of pensions ‘auto-enrolment’ by the Government, the cost of the new defined contribution scheme administered by SHPS was £428,000 (2024: £402,202).

12. SALVATION ARMY HOMES TURNOVER AND OPERATING COSTS

By virtue of the governing document of The Salvation Army Homes (‘SAH’), The Salvation Army Social Work Trust has effective control of SAH.

80

The net assets of SAH and its subsidiaries have been consolidated within these accounts. The net assets of the SAH group were, on acquisition, adjusted to fair values.

For the purpose of establishing fair values, SAH’s property portfolio was valued by an independent chartered surveyor on an existing use social housing (EUV – SH) basis.

SAH’s results, adjusted to reflect The Salvation Army Social Work Trust’s accounting policies, were as follows:

2025 2025 2024 2024
£000 £000 £000 £000
Turnover 28,453
-		 27,525
Grantsreceived -
28,453



(31,926)		 (11,034)
(10,250)
(1,371)
(3,673)
23		 27,525
Operating costs
Staff costs
(11,839)
Other costs
(15,580)
Interest payable
(1,091)
Property depreciation
(3,493)
Tax
77		 (26,305)
(1,569)
-
745
(Loss) on disposal of assets (2,173)
Gain on revaluation of investment properties 3,000
Interest receivable 105
Social Housing Pension Scheme (SHPS)
Actuarial gain /(loss) 265 (501)
(4,032) 1,651

*Other Costs includes temporary agency staff costs of £1,031,000 (2024: £1,031,858).

13. PROPERTIES

GROUP Freehold Leasehold Total
£000 £000 £000
Cost or valuation
Balance at 1 April 2024 209,119 52,440 261,559
Additions during the year 3,913 2,334 6,247
Schemes completed duringtheyear 59 - 59
213,091 54,774 267,865
Less: disposals (1,116) (3,442) (4,558)
Balance as at 31 March 2025 211,975 51,332 263,307
Accumulated depreciation
Balance at 1 April 2024 60,501 17,330 77,831
Charge for the year 4,681 701 5,382
Less: disposals (322) (1,196) (1,518)
Balance as at 31 March 2025 64,860 16,835 81,695
Net book value at 31 March 2025 150,295 31,317 181,612
Net book value at 31 March 2024 148,618 35,110 183,728

Both SAH’s portfolio (on 19 January 2011) and, SAH’s acquisition, Chapter 1’s portfolio (on 23 March 2017) were brought into account at valuation, performed by independent chartered surveyors on an existing use social housing (EUV-SH) basis. All other properties are reflected at cost.

The property disposals line above includes discontinued SAH services.

81

PARENT Freehold Leasehold Total
£000 £000 £000
Cost or valuation
Balance at 1 April 2024 104,483 568 105,051
Schemes completed duringtheyear 59 - 59
104,542 568 105,110
Less: disposals (427) - (427)
Balance as at 31 March 2025 104,115 568 104,683
Accumulated depreciation
Balance at 1 April 2024 38,070 146 38,216
Charge for the year 2,156 14 2,170
Less: disposals (238) - (238)
Balance as at 31 March 2025 39,988 160 40,148
Net book value at 31 March 2025 64,127 408 64,535
Net book value at 31 March 2024 66,413 422 66,835

All properties are used for charitable purposes. The market values of these properties are significantly higher than their book values but the costs of estimating these exceed any benefits accruing.

The Salvation Army, in common with other churches, provides ministers of religion (officers) and retired ministers of religion with accommodation and holds a portfolio of properties to allow it to do so. Occasionally properties are not required immediately to provide accommodation to officers and retired officers and these, where possible, are let on short-term tenancies until required to accommodate officers. The Salvation Army does not consider these properties to be investment properties as their availability for use, other than for the work of the charity, is typically of limited duration.

14. PROPERTY SCHEMES IN PROGRESS

Group Parent
2025 2025
£000 £000
Balance at 1 April 2024 1,520 1,443
Additions duringtheyear 1,024 171
2,544 1,614
Propertyschemes completed duringtheyear (59) (59)
Propertyscheme’s expenditure written off (1,404) (1,404)
Balance as at 31 March 2025 1,081 151

82

15. MOTOR VEHICLES AND EQUIPMENT

GROUP Motor Vehicles Equipment Total
£000 £000 £000
Cost
Balance at 1 April 2024 1,458 3,235 4,693
Additions during the year 460 278 738
Disposals - (2) (2)
Balance as at 31 March 2025 1,918 3,511 5,429
Accumulated depreciation
Balance as at 1 April 2024 1,370 1,882 3,252
Charge for the year 49 280 329
Less: disposals - (2) (2)
Balance as at 31 March 2025 1,419 2,160 3,579
Net book value at 31 March 2025 499 1,351 1,850
Net book value at 31 March 2024 88 1,353 1,441
PARENT Motor Vehicles Equipment Total
£000 £000 £000
Cost
Balance at 1 April 2024 1,415 - 1,415
Additions duringtheyear 460 - 460
Balance as at 31 March 2025 1,875 - 1,875
Accumulated depreciation
Balance as at 1 April 2024 1,327 - 1,327
Charge for theyear 48 - 48
Balance as at 31 March 2025 1,375 - 1,375
Net book value at 31 March 2025 500 - 500
Net book value at 31 March 2024 88 - 88

16. INVESTMENTS FIXED ASSET INVESTMENTS

GROUP AND PARENT Unlisted Units in
CIF1		 Units in
CIF2
Total
£000 £000 £000
£000
5
-		 4,459
(170)		 143,701
148,165
(2,015)
(2,185)
Cost/market value at 1 April 2024
Unrealised(losses)on Investments
Cost/market value as at 31 March 2025 5 4,289 141,686
145,980

At 31 March 2025, units held in The Salvation Army Common Investment Fund No 1 had a unit value of £3.2423 (2024: £3.3037).

At 31 March 2025, units held in The Salvation Army Common Investment Fund No 2 had a unit value of £4.1775 (2024: £4.2358).

Salvation Army Social Work Trust holds one £1 share and has the power to control Salvation Army Homes (SAH). The Salvation Army Homes is registered with the Co-operative and Community Benefit Societies Act 2014 and is a registered social landlord regulated by The Regulator of Social Housing. SAH itself owns the whole of the issued share capital of Kingsown Limited and SAH Developments Limited, companies incorporated in England. The results and net assets of SAH, Kingsown and SAH Developments have been consolidated within these accounts.

83

INVESTMENT PROPERTIES

Group Group Group Parent Parent
2025 2024 2025 2024
£000 £000 £000 £000
Market value at 1 April 2024
(Disposals) during the year
Property revaluation adjustment -
increaseinvalue		 51,156
(36,500)
1,165		 47,954
-
3,202		 14,656
14,454
-
-
1,165
202
Market value as at 31 March 2025 15,821 51,156 15,821 14,656
Fixed assets investments (from above) 145,980 148,165 145,980 148,165
Total Investments 161,801 199,321 161,801 162,821

The Group’s property portfolio is reviewed annually to identify investment properties, which are those properties held to earn income or for capital appreciation rather than to be used for its charitable purposes. Properties no longer used for charitable purposes but retained until market conditions allow their disposal are not treated as investment properties, provided disposal is intended within a three-year window.

After initial recognition, investment property is measured at its fair value. The fair value of the investment property is determined by members of staff with relevant experience and qualifications. For residential properties, the desktop valuation is based on comparable properties in the local area. The data is collected from property portal sites like Rightmove and Zoopla and supported by data of sold and completed properties from HM Land Registry. A valuation by an independent valuer was not performed.

17. DEBTORS

17.
DEBTORS
Group Parent
2025 2024 2025
2024
£000 £000 £000
£000
Accommodation charges outstanding 3,990 2,812 2,460
1,851
Trade debtors 1,722 10,243 1,722
10,244
Prepayments and other accrued income 10,249 11,515 9,279
10,988
Connected Salvation Army Trust and companies 13,762 58,372 13,762
58,372
Other debtors 2,177 4,372 -
3,203
31,900 87,314 27,223
84,658

Included in Connected Salvation Army Trust and companies last year was £35m bank deposit held on behalf of Social Work Trust.

18. (a) CREDITORS: Amounts falling due within one year

Group Group Parent Parent
2025 2024 2025 2024
£000 £000 £000 £000
Trade creditors 9,462 12,532 4,387 9,476
Accruals and deferred income 11,860 11,891 6,874 7,745
Other creditors 7,876 11,447 7,675 8,219
Tax and social security 2,475 2,135 2,462 2,045
Connected Salvation Army Trust and Companies 1,045 913 1,045 913
Amounts owed to group and associated
undertakings		 - - - 3,211
Bank loans repayable within one year (Note
18(b))		 109 4,825 - -
32,827 43,743 22,443 31,609

84

*** Deferred Income**

Balance at 1 April 2024
Additions during the year
Released during the year
Balance at 31 March 2025		 Group
2025
£000
2,444
3,160
5,604
(1,769)
3,835		 Parent
2025
£000
285
16
301
(285)
16

£3.82m deferred income relates to SAH rental income received in advance.

18. (b) CREDITORS: Amounts falling due after more than one year

Group Group Parent
2025 2024 2025
2024
£000 £000 £000
£000
110
328
4,363		 1,330
4,255
10,214
Loans repayable between one and two years -
-
Loans repayable between two to five years -
-
Over five years -
-
4,801 15,799 -
-

Housing loans from private sources are secured by charges on SAH-specific housing properties and are repayable between 2025 and 2065 at varying rates of interest between 3.00% and 6.50% (2024: 4.10% and 7.75%). The net book value of these properties at 31 March 2025 is £4.97m (2024: £28.2m).

19. OPERATING LEASE COMMITMENTS

The Group has future minimum lease commitments under non-cancellable operating leases of:

2025 2024
£000 £000
Land and buildings:
Within one year 342 63
One to five years 213 47
Over five years 7 15
562 125
2025 2024
£000 £000
Other operating leases:
Within one year 240 247
One to five years 450 642
Over five years 9 20
699 909

The other operating leases category relates solely to SAH. Lease payments of £430k (2024: £369k) were charged to the Consolidated Statement of Financial Activities during the year.

85

20. OPERATING LEASE - CONTRACTED INCOME

The Group and Parent have future minimum lease income due under non-cancellable operating leases of:

Group Group Parent Parent
2025 2024 2025
£000 £000 £000
Land and buildings:
Within oneyear 43 55 43
One to fiveyears 138 157 138
Over fiveyears 216 241 216
397 453 397
Lease income of £497k (2024: £677k)
year.
21.
ENDOWMENTS
GROUP AND PARENT Balance
31 March
2025
£000 £000 £000 £000
Expendable endowment 16,863 - (235)
XeniaField CapitalFund 16,628
20
156
35
79
1
16
14
16
1,571
239		 -
-
-
-
-
-
-
-
-
-		 -
(7)
-
-
-
-
-
(1)
(60)
(9)
Permanent endowments
H.M. Brant 20
J.B. Crighton 149
Miss M.B. Hill 35
C.J. and E.J. Melbourne 79
Blackmore Mission 1
M.J. Fowler 16
R. Pattison 14
Leeds Guardian Homes Trust 15
E.S. Brant Trust 1,511
BirminghamGirlsTrust 230
2,147 - (77) 2,070
19,010 - (312) 18,698

The Expendable Endowment represents the Xenia Field Fund. Whilst the capital and income of the Fund can be expended on social work projects, it is the Trustee’s intention that the capital be maintained.

Permanent Endowment funds represent bequests and donations, the capital of which cannot be expended but any income can be applied to social work projects without restriction.

The E.S. Brant Trust was established by a trust deed dated 16 June 1965. The annual income can be applied to the social work of The Salvation Army.

The Birmingham Girls Trust consists of endowment funds transferred from Birmingham City Council, the income on which can be applied for the benefit of girls in distress in the Birmingham area.

All endowment funds are represented by investments in The Salvation Army’s Common Investment Funds.

86

Comparative

GROUP AND PARENT
Expendable endowment
Xenia Field Capital Fund
Permanent endowments
H.M. Brant
J.B. Crighton
Miss M.B. Hill
C.J. and E.J. Melbourne
Blackmore Mission
M.J. Fowler
R. Pattison
Leeds Guardian Homes Trust
E.S. Brant Trust
Birmingham Girls Trust		 Balance
1 April
2023
£000
14,950
20
134
35
79
1
16
14
15
1,354
207
1,875
16,825		 New Funds
Received
£000
-
-
-
-
-
-
-
-
-
-
-
-
-		 Changes in
Market Value of
Investments
£000
1,913
-
22
-
-
-
-
-
1
217
32
272
2,185		 Transfers
£000
-
-
-
-
-
-
-
-
-
-
-
-
-		 Balance
31 March
2024
£000
16,863
20
156
35
79
1
16
14
16
1,571
239
2,147
19,010

87

22. RESTRICTED FUNDS

22.
RESTRICTED FUNDS
Balance
1 April
2024
Income
Expenditure
Other
recognised
gains/(losses)
Transfers
From/(to)
Unrestricted
Reserves
Balance
31 March
2025
£000
£000
£000
£000
£000
£000
Social Work Fund 80,296
418
(3,187)
-
9,324
86,851
Other restricted funds
Social Work Projects Including Property Funding 30,202
1,769
(2,006)
(85)
97
29,978
Centre specific donations 6,755
1,435
(1,507)
-
-
6,683
Bramwell Arthur William Goodwin 3,233
-
(165)
-
-
3,068
SAH operations –property purposes 130,833
27,630
(31,718)
265
5,420
132,430
171,023
30,835
(35,396)
180
5,517
172,159
251,319
31,253
(38,583)
180
14,841
259,010

Other Restricted Funds represents unexpended balances of donations and legacies held on trust which can only be expended in accordance with the specific terms laid down by the donors.

Social Work Fund represents sums already expended on the properties used by The Salvation Army in its social work throughout the United Kingdom.

The Centre specific donations fund represents amounts that have been donated for specific care home activities, either for single or multiyear purposes. This reserve is applied to all cost centres; some of course are more active than the others. It also manages several projects per cost centre at a time.

Bramwell Arthur William Goodwin is a legacy donation to benefit the disabled and blind within the Salvation Army Care Homes in England.

All SAH funds are treated as restricted in the group’s accounts as these funds are limited to the operations of SAH rather than the wider work of the Social Work Trust. Transfers between funds arise from the sale or purchase of property or the approval of funding for property schemes in progress which are transferred between unrestricted and restricted funds.

88

Comparative

GROUP

Social Work Fund
Other restricted funds
Social Work projects including property funding
Centre specific donations
Bramwell Arthur William Goodwin
SAH operations – property purposes		 Balance
1 April
2023
Income
Expenditure
Other recognised
gains/(losses)
Transfers
From/(to)
Unrestricted
Reserves
Balance
31 March
2024
£000
£000
£000
£000
£000
£000
75,920
1,212
(4,932)
-
8,096
80,296
28,962
1,689
(421)
306
(334)
30,202
6,534
1,025
(546)
-
(258)
6,755
3,233
-
-
-
-
3,233
129,352
25,287
(26,305)
2,499
-
130,833
168,081
28,001
(27,272)
2,805
(592)
171,023
244,001
29,213
(32,204)
2,805
7,504
251,319

89

23. UNRESTRICTED FUNDS

GROUP AND PARENT Balance
1 April
2024
Income
Expenditure
Other
recognised
gains/(losses)
Transfers
From/(to)
Unrestricted
Reserves
Balance
31 March
2025
£000
£000
£000
£000
£000
£000
General reserves 20,731
207,715
(195,125)
-
(10,882)
22,439
Unrealised investmentgains 100,169
-
-
(623)
(1,118)
98,428
120,900
207,715
(195,125)
(623)
(12,000)
120,867
Designated reserves
Property purposes 47,227
755
(1,327)
-
(1,495)
45,160
Vehicles 1,497
4
-
-
(1,346)
155
Social Workprojects 3,067
-
-
-
-
**3,067 **
51,791
759
(1,327)
-
(2,841)
48,382
172,691
208,474
(196,452)
(623)
(14,841)
169,249

The General Reserve is required to fund the day-to-day needs of The Salvation Army Social Work Trust. The Unrealised Investment Gains Reserve is held to separate unrecognised gains still subject to market risk.

Unrestricted Funds include designated reserves which have been set aside by the Trustee for specific purposes. Designated funds are kept under review by SATCO to ensure their purpose remains in the medium term.

90

Comparative

GROUP AND PARENT

GROUP AND PARENT
General reserves
Unrealised investment gains
Designated reserves
Property purposes
Vehicles
Social work projects		 Balance
1 April
2023
Income
Expenditure
Other recognised
gains/(losses)
Transfers
from/(to)
Restricted Reserves
Balance
31 March
2024
£000
£000
£000
£000
£000
£000
15,489
210,550
(199,359)
-
(5,949)
20,731
85,493
-
-
14,676
-
100,169
100,982
210,550
(199,359)
14,676
(5,949)
120,900
48,593
197
(8)
-
(1,555)
47,227
1,497
-
-
-
-
1,497
3,067
-
-
-
-
**3,067 **
53,157
197
(8)
-
(1,555)
51,791
154,139
210,747
(199,367)
14,676
(7,504)
172,691

91

24. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund Balances as at 31 March 2025 are represented by:

GROUP Endowment
Funds
Social Work
Fund
Other
Restricted
Reserves
Unrestricted
Reserves
Total
£000
£000
£000
£000
£000
Fixed assets
Properties -
64,535
117,077
-
181,612
Property schemes in progress -
151
930
-
1,081
Motor vehicles and equipment -
-
1,350
500
1,850
Investments 18,698
-
-
143,103
161,801
Current assets -
21,940
70,005
48,314
140,259
Current liabilities -
225
(10,384)
(22,668)
(32,827)
Long-term bank loans -
-
(4,801)
-
(4,801)
Defined benefit pensionliabilities -
-
(2,018)
-
(2,018)
Total net assets 18,698
86,851
172,159
169,249
446,957

Fund Balances at 31 March 2024 are represented by:

GROUP

Fixed assets
Properties
Property schemes in progress
Motor vehicles and equipment
Investments
Current assets
Current liabilities
Long-term bank loans
Defined benefit pension liabilities
Total net assets		 Endowment
Funds
£000
Social
Work
Fund
£000
Other
Restricted
Funds
£000
Un-
restricted
Reserves
£000
Total
£000
-
66,835
116,893
-
183,728
-
1,443
77
-
1,520
-
-
1,353
88
1,441
19,010
-
36,500
143,811
199,321
-
12,322
46,994
60,097
119,413
-
(304)
(12,134)
(31,305)
(43,743)
-
-
(15,799)
-
(15,799)
-
-
(2,861)
-
(2,861)
19,010
80,296
171,023
172,691
443,020

92

25. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES

2025
£000
2024
£000
Net movement in funds 3,937
28,055
Unrealised loss/(gain) on investments 1,020
(20,130)
Realised (gain)/loss on disposal of properties 1,128
1,098
Depreciation of motor vehicles and equipment 329
275
Depreciation of properties 5,382
5,579
Investment and rental income (4,650)
(3,431)
(Increase)/decrease in stocks (5)
2
Decrease/(increase) in debtors 55,414
(58,968)
Property schemes in progress written off 1,404
4,761
Increase in creditors (6,200)
8,707
(Decrease)/increase in defined benefit pension scheme
liability		 (843)
10
Interest payable 1,091
1,371
Net inflow/(outflow) from operating activities 58,007
(32,671)

26. CAPITAL COMMITMENTS

At the balance sheet date, commitments in relation to the construction or refurbishment of property amounted to £2.5m (2024: £3.4m). Of this amount £2.5m related to SAH (2024: £2.1m).

27. RELATED PARTY TRANSACTIONS

The Salvation Army Trust (registration number 214779) is a linked charity of the Social Work Trust by nature of the sole trustee in common, both trusts together representing the work of The Salvation Army across the UK.

During the current year, grants totalling £26.3m (2024: £29.7m) were received from The Salvation Army Trust. An overhead recharge of £11.8m (2024: £10.8m) was charged from The Salvation Army Trust during the year, representing the Social Work Trust’s share of central overhead costs which were incurred by The Salvation Army Trust. The full amount of the overhead recharge of, £11.8m (2024: £10.8m) was outstanding at year end. In addition, recharges of £76k (2024: £105k) were charged to The Salvation Army Social Work Trust for hire of rooms at corps premises.

The Salvation Army General Insurance Corporation Ltd (SAGIC) (registered no 101071) a subsidiary of connected party the Salvation Army Trust, provided insurance services of £1.2m (2024: £1.1m) to the Social Work Trust. Similarly connected SAT subsidiary SATCoL (Salvation Army Trading Company – registered no 02605817) provided publications and periodicals to the value of £37K (2024: £43K).

The Salvation Army Social Work Trust holds one £1 share and has the power to control The Salvation Army Homes (SAH). The Salvation Army Homes is registered with the Co-operative and Community Benefit Societies Act 2014 and is a registered social landlord regulated by The Regulator of Social Housing. SAH itself owns the whole of the issued share capital of Kingsown Limited and SAH Developments Limited, companies incorporated in England. The results and net assets of SAH, Kingsown and SAH Developments have been consolidated within these accounts. The following costs have been charged to the Social Work Trust during the year; Bed spaces recharged from SAH to the Social Work Trust during the current year totalling £7.8m (2024: £7.4m); 5% margin arose from the bed space recharged totalling £391k (2024: £342k); Other costs incurred on behalf of Social Work Trust £387k (2024: £508k); out of these £305k (2024: £1.4m) is outstanding at year end.

The Salvation Army Homes received a loan of £565K from the Salvation Army Trust, a connected party.

SAH took out a loan of £315,000 with Reliance Bank Limited in the financial year ended 31 March 2011, and £2,200,000 in the financial year ended 31 March 2014, and a further loan of £150,000 in the financial year ended 31 March 2015a wholly owned bank by The Salvation Army International Trustee Company (SAITCo).

The Association made the following payments during the year to Reliance Bank Limited:

Capital repayments £109,000 Interest payments £98,000

93

The total outstanding balance of the loan as at 31 March 2025 was £1,385,000 (2024: £1,494,774). The long-term loan was granted to the Association on normal commercial terms, including Salvation Army Homes providing appropriate security to satisfy the conditions of the loan.

During the year, SAH paid £426,000 (2024: £302,123) for the property and liability insurance to SAGIC Limited, Social Work Trust paid £1.2m (2024: £1m) for the insurance to SAGIC Limited. SAGIC Limited is a company wholly owned by The Salvation Army Trust.

In addition to the entities listed above, transactions occurred during the year with individuals who are Key Management Personnel, or their families. These transactions are described in Note 10 to the financial statements.

28. CONTINGENT LIABILITY

Salvation Army Homes is the leaseholder for several properties where the Social Work Trust are the freeholder. In the event of a lease surrender, a contingent liability would occur for repayment of grant to Homes England or the Greater London Authority. A Lease Surrender Agreement between both parties ensures that in this event, an offsetting contingent asset would exist.

29. SUBSEQUENT EVENTS

Subsequent to the year end, the Trustees have decided to reimagine the support we provide to older people. This will entail withdrawing from residential care homes and instead developing a range of support services within local communities, particularly in those areas where a Salvation Army church is present. Services, as appropriate for individual communities, such as Parish Nursing, Dementia Support groups and specialist programmes for additionally disadvantaged older people such as those who are socially isolated due to location or access needs or those who are digitally excluded. Where possible the current residential homes will be sold to other providers as a “going concern” so that the care of individuals is uninterrupted.

94

30. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITY FOR THE YEAR ENDED 31 MARCH 2024

ENDOWMENT
£000		 ENDOWMENT
£000		 RESTRICTED
£000		 RESTRICTED
£000		 UNRESTRICTED
£000		 UNRESTRICTED
£000		 2024 Total
£000
INCOME AND ENDOWMENTS
Donations and legacies
Grants receivable: Central Trust
Donations
Legacies		 -
-
-		 -
796
1,358		 29,698
623
-
29,698
1,419
1,358
- 2,154 30,321 32,475
Charitable activities
Centres' operations
Other social operations
Housing associationturnover		 -
-
-		 281
91
27,525		 90,470
86,785
-
90,751
86,876
27,525
- 27,897 177,255 205,152
Investments
(Losses) on disposal of fixed assets
**TOTAL INCOME **		 -
-
-		 260
(1,098)
29,213		 3,171
-
210,747		 3,431
(1,098)
239,960
EXPENDITURE
Raising funds
Investmentmanagement costs		 - - 50
50
- - 50 50
Charitable activities
Centres' operations
Other social operations		 -
-		 5,723
176		 108,665
90,652
114,388
90,828
Housing associationoperating costs - 26,305 - 26,305
- 32,204 199,317 231,521
TOTAL EXPENDITURE - 32,204 199,367 231,571
Net gains on investments 2,185 3,306 14,676 20,167
Net income
Transfers between funds
Actuarial (losses) on defined benefit		 2,185
-		 315
7,504		 26,056
(7,504)		 28,556
-

pension schemes
Net movement in funds		 -
2,185		 (501)
7,318		 -
18,552		 (501)
28,055
RECONCILIATION OF FUNDS
Total funds brought forward		 16,825 244,001 154,139
414,965
Total funds carried forward 19,010 251,319 172,691 443,020

95