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SHELTER
ANNUAL REPORT
AND
ACCOUNTS
2022123

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## Introduction 

## Helen Baker – Chair 

Shelter exists to defend the right to a safe home. Our strategy across England and Scotland is built on the conviction that a safe home is a fundamental human need as well as a basic moral right, as vital as education or healthcare. 

The intensity of the housing emergency – considerably worse over the past year – is testament to the fact that successive governments have not given the right to a safe home the importance it deserves. The emergency now affects 17.5 million people. Homelessness was already rising, but the cost of living crisis has further exacerbated the challenges. People are struggling in the face of record high rents, a collapse in the supply of social housing and the erosion of support systems. Even more families are stuck in poor quality temporary accommodation which is often anything but temporary. 

Across 2022-3 Shelter has continued to work across England and Scotland  to tackle the root causes of unfit housing and homelessness, focusing on our three strategic priorities; campaigning for a new generation of social homes , improving the rights of those who are at risk of homelessness and a shift of power built on anti-racism and putting the views, experiences and needs of people living through the housing emergency at the centre of everything we do. 

We can achieve none of this alone. In the last year in England, we have worked with steadily increasing numbers of supporters, many of whom are directly affected by the housing emergency, and a coalition of partners and communities to call for reform of the private and social rented sectors. We have successfully campaigned alongside Grenfell United for big changes to the 

way social housing is managed and maintained. Parliament has now passed the long-awaited Social Housing Regulation Bill into legislation, improving safety, and living conditions for millions. We have also campaigned on the Renters’ Reform Bill aimed at abolishing no fault evictions – a leading direct cause of homelessness – and creating a national landlord register. 

In Scotland, we have seen communities taking action to demand social homes and have ensured that those languishing in temporary accommodation are at the top of the political agenda. Our supporter base in Scotland has grown and become more active, demanding change as never before. 

In both nations, we have created unprecedented awareness that only building social homes which people on low incomes can genuinely afford can end the housing emergency. 

Our authority to speak truth to power derives from our direct work with individuals, families and local communities who experience its worst effects. Across our emergency helpline, our live webchat and our 11 community hubs we worked with over 45,400 households in 2022-3. More than ever before we have been achieving systemic change at a local level through joining forces with more community and grassroots organisations and people with lived experience of homelessness. Each of our hubs has its own plan for delivering change, focusing on what matters most to the individuals and groups who most need it locally. What we learn at a local level has also then helped shape and inform our national campaigns. In the same way, our legal teams have continued to play a vital role in defending individual rights whilst also taking on strategic litigation where just one case has made it easier for thousands of private renting families to find a suitable home to rent. 

As the level and urgency of demand facing the organisation has increased, 

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Shelter has been able to respond by continuing to diversify sources of income, exploring new ways of working and developing new delivery and service models. The energy, creativity, and commitment of all our staff and volunteers has been central to this, and we are extremely grateful to them for all they have contributed to keeping Shelter both secure and effective. We are also profoundly grateful to those with direct experience of the housing crisis, the communities in which we work, the funders, supporters and campaigners who have worked alongside us over the past year in our fight for home. Only together can we overcome the emergency we face and defend everyone’s right to a safe home. 


Helen Baker Chair of Trustees 

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## What is the housing emergency? 

Shelter was formed in 1966 in response to the country’s massive housing crisis. Shelter’s founders wanted to establish one organisation who could speak for the millions of ‘hidden homeless’ living in overcrowded slums. They understood that homelessness is more than people sleeping on the streets, that it included people living without a permanent home, in poor conditions, and those living precariously because of insecure tenancies or unaffordability. 

The housing emergency today affects 17.5 million people. people denied a safe, stable home. That includes thousands of people sleeping on the streets on any given night, over a quarter of a million people stuck in temporary accommodation, and millions more living in overcrowded, dangerous, unfit or unaffordable housing. 

The housing system is broken, successive governments have failed to provide the good-quality, stable social housing people need, leaving millions shut out and struggling to find a secure home. People are crammed into unsafe housing – places that are riddled with mould or damp that makes them sick. Private renting lacks regulation, leaving renters facing insecurity, the threat of unfair eviction and unsustainably high rents. And when people struggle, our welfare system is too weak to support them. 

## What we do 

Shelter exists to defend the right to a safe home. Every year, we help those people struggling with bad housing or homelessness through our advice, support and legal services and we campaign to make sure that one day, the right to a home exists for everyone. 

## Key objectives 

Shelter was set up in 1966 to: 

- relieve hardship and distress among homeless people and those in need, including those living in adverse housing conditions; 

- make funds available to other bodies (whether corporate or not), whose charitable aims are to relieve hardship and distress; 

- relieve poverty and distress; 

- educate the public about the nature, causes and effects of homelessness, human suffering, poverty and distress; and to carry out research on these issues to make useful results available to all. 

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## Our strategy 

Last year was the first under our new strategic plans, in pursuit of the same ten-year strategic goals. 

With growing inequality, hardship, fear and social division, our goals are even more urgent, and the stakes are getting higher. The only answer to the housing emergency is sustained investment in high-quality, secure homes that people on low incomes can afford to rent. 

We have a number of goals for the threeyear strategic period: 

## **A new generation of social homes** 

- A broad public movement demanding a new generation of homes. 

- In Scotland, ensuring everyone waiting in temporary accommodation can access a social home. 

## **Housing rights – right now** 

- Equipping individuals and communities to fight housing injustice. 

- Increasing access to a safe home for People of Colour. 

- Strengthening and enforcing everyone’s housing rights. 

## **A shift of power in our fight for home** 

- Expertise by experience, antiracism and climate justice are at the heart of Shelter. 

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## A new generation of social homes 

Our ultimate goal is the delivery of a new generation of social homes. We recognise that a home is a fundamental human need but that a home is more than a building. Having a home allows people to put down roots in a community. It’s the stable foundation we all need to build our lives. 

The housing market relies on different types of homes to buy and rent. Social housing has historically been a key part of this, so failing to build these homes has caused problems throughout the system. These problems include: 

- **reliance on private housebuilding** , which can never solely provide all the homes we need; 

- **declining rates of home ownership** , as rising rents leave most private renters unable to save towards a deposit; 

- **negative impacts on remaining social housing stock** , as many registered social landlords struggle to maintain and improve homes adequately in the face of shrinking rent revenues; and 

- **strained communities and local labour markets** , as young people and families find themselves priced out of many areas entirely. 

Social homes are the only permanent solution to the housing emergency. As more people are exposed to homelessness due to the cost-of-living crisis, only building a new generation of social housing can make the difference. 

everyone in temporary accommodation to have access to a social home, quickly, and where they need it. 

Waiting for housing has devastating effects on individuals, affecting education, family life, health and job prospects. The Scottish Housing Regulator has also identified an emerging risk of systemic failure in homelessness services. Ahead of the local elections, in Scotland we raised our voices to say that to end homelessness, our council leaders should be “bricking it”. People across Scotland led the campaign by signing our petitions and campaigning on the streets to demand that local councils build the social homes they’ve already planned and telling them to get on with it. Thanks to the collective pressure of more than 12,000 people across Scotland, city leaders from across the political divide pledged to build social housing. 

In England we successfully influenced the **Levelling Up and Regeneration Act** during its progress through the parliamentary process. After years of campaigning, the government has voted through an amendment to make land cheaper for councils to build social housing by reforming rules around compulsory purchase, so they don't have to pay 'hope value'. To deliver this change, thousands of Shelter’s supporters lobbied members of the House of Lords, showing that even on difficult issues like planning reform, we can use public campaigning to achieve change. 

In Scotland the first step is to make sure that there are homes for people where they are needed most. By 2029, we want everyone who needs social housing to have it; and to bring us closer to that vision, we must first address those languished in temporary accommodation. By 2025, we want 

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## Housing rights 

After years of campaigning, the **Renters Reform Bill** was introduced into parliament in May 2023. The bill gives tenants greater security by abolishing 'no-fault' Section 21 evictions and introducing a landlord register. Until the bill is passed, we will continue to ensure that the bill is strengthened – particularly in areas such as longer notice periods, greater security at the start of a tenancy and the end of discrimination against renters who are in receipt of benefits or have children. This legislation is urgently needed – section 21 no-fault evictions continue to be a key driver of homelessness and figures show that nofault evictions have more than doubled in a year. 

The **Social Housing Regulation Bill** completed its passage through parliament and is now law. This act aims to protect social tenants and ensure that high management standards are achieved in the social rented sector. The legislation is testament to the tireless work over many years of those directly affected by poor housing conditions. Working closely with campaigners like Grenfell United and social tenants like Awaab Ishak's family (Awaab tragically died in 2020 after prolonged exposure to damp and mould), we secured major improvements to the bill, including Awaab's Law (which ensures social landlords have a duty to repair health hazards like damp and mould) and ensuring professionalisation of the sector through an amendment that will ensure social housing managers are suitably qualified. 

This legislation will have a monumental impact on social and private tenants all over England, improving the lives of millions of people trapped in poor quality, insecure and expensive homes. Our work continues as we campaign to ensure that the legislation is as strong as possible and that there is proper implementation and enforcement. 

## Temporary accommodation 

In March we published major research exposing the devastating impact of temporary accommodation. Our survey of over one thousand people living in temporary accommodation – the largest ever piece of research with this group – revealed the dangerous, slum-like conditions that tens of thousands of people are living in. We called for temporary accommodation to be timelimited and barely used, highlighting the need for more social housing to end homelessness. 

A Steering Group of people with lived experience guided every stage of the research and spoke directly to MPs at our launch event in the Houses of Parliament. The research secured widespread media coverage, including over 150 regional pieces and a feature on BBC Radio 4’s _Today_ programme. 

## Scottish Housing Emergency Action Plan 

In summer 2022, following another 17% increase in the number of children in temporary accommodation and the threatened collapse of the homelessness system in Scotland, we called upon the First Minister to lead an action plan without delay. The plan aimed to safeguard households from homelessness, reduce the need for affordable housing by 2026, and address the impending challenges of Covid-19related rent arrears, escalating rents and energy costs. It also aimed to address the needs of those already trapped in the broken and biased homeless system. 

The action plan focuses on immediate actions that the Scottish Government can take with its existing powers and emphasises the appointment of a dedicated senior government minister to 

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oversee its implementation. The plan revolves around three key priorities identified as critical in tackling the crisis: buying and building 38,500 social homes by 2026, fully funding local authority homelessness services, and ensuring every homeless household has the right to a permanent home. 

The transition from a pandemic to a cost-of-living crisis has intensified the housing emergency. The worsening situation is pushing more individuals into poverty, and forcing them to make tough choices between rent and basic necessities. In response, in October 2022, the Scottish Government implemented emergency measures under the **Cost of Living (Tenant Protection) (Scotland) Act 2022** . These measures included rent freezes and eviction moratoriums for social and private tenants. While we appreciated efforts to keep people in their properties, some of these measures proved ineffective and did not adequately support people to stay in their homes. 

We persisted in advocating for prioritising structural solutions ensuring the delivery of social homes in the right places to address the root causes of the housing emergency, rather than rely on temporary measures. 

The plan garnered attention, prompting a visit from the former First Minister to Shelter Scotland offices and housing was high on the political agenda. Continuous pressure was exerted on the Scottish Government through parliamentary questions, debates and discussions led by housing spokespeople from various political parties. Our advocacy and public affairs activities played a crucial role in raising awareness of the housing emergency in parliament. 

## Scottish budget – stop the cuts! 

made the decision to reduce the housing capital budget for 2023/24 by 16%, amounting to a year-on-year cut of £112.8m. Despite earlier promises to prioritise social housing investment, this cut posed a significant threat to the government's ability to address housing needs during its current term. 

Throughout the government’s budgetsetting process, we urged our supporters and the public to directly email the Deputy First Minister, emphasising the need to stop the cuts. We also worked to raise awareness about the extent of the cuts and their potentially disastrous consequences for the urgent delivery of much-needed social homes in Scotland. Our call received support from sector partners and the public, with over a thousand emails sent within 14 days. While that pressure led to some additional funding being allocated to the Affordable Housing Supply Programme, the amount falls short of what is truly needed. 

The unexpected announcement of a change of First Minister came shortly after. Paul McLennan was announced as housing minister when the new cabinet was formed, largely in response to our call for a minister with a dedicated remit. 

## Looking forward 

Under pressure from Shelter Scotland, the Scottish Government established various working groups to combat rising homelessness. One such group was the Temporary Accommodation Task and Finish group, co-chaired by the Director of Shelter Scotland, Alison Watson. The group’s objective was to find ways to significantly reduce the number of people living in temporary accommodation and shorten their stay. In March 2023, the group, comprising organisations from across the sector, published a report closely aligned with the recommendations in our Scottish Housing Emergency Action Plan. 

In December, the Scottish Government 

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We have partnered with the Housing Association Charitable Trust on a threeyear research study aimed at demonstrating the social value generated by new social housing. Using UK Social Value Bank calculations, the research quantifies the positive impact on individuals' wellbeing and the cost savings for the state. 

We collaborated with Heriot-Watt University and CEMVO to conduct qualitative research involving minoritised ethnic participants. The aim is to identify the barriers the participants face in achieving favourable housing outcomes. This research equips us with an evidence base to advocate for policy and practice changes with the Scottish Government, local authorities, housing providers and other crucial stakeholders. 

We will continue to advocate for the recommendations from the Temporary Accommodation Task and Finish group and Scottish Housing Regulators report to be implemented as well as the funding required to deliver the social homes needed to address the housing emergency. The new First Minister and newly appointed housing minister have inherited a system that is buckling under the strain with the housing emergency now beyond critical. We must now redouble our efforts on a whole system response to tackle it. 

## Telephone and online advice services 

Shelter’s telephone and online advice services run in England and Scotland, supporting and equipping individuals with the information they need to fight housing injustice, ensuring they are able to assert their rights. These services also gather data that can be used to inform systems-change activities. These services have truly national reach and are the at-scale solution to the emergency. 

Our telephone and online advice services are uniquely positioned to gather data on the housing emergency from across England and Scotland. They give us the ability to understand the issues people are facing across the country and provide the evidence to support systems-change activities. 

During the year, in Scotland our goal was to change the service delivery approach; moving away from being demand led to focusing on being a source of data and insight, making each call or chat count in the fight for home. The data and insight generated has a significant role to play in the delivery of our strategic goals. During the year, the team transformed to focus on quality evidence, responding to the strategic imperative that places real stories at the heart of our activities. 

Also in Scotland during the year we managed our exit from the ScotWRAS service. The funding for this service for professionals came to an end after ten years. The team of two staff advised around 1,000 professionals every year and this work undoubtedly strengthened partners’ confidence in their own advocacy work and ultimately helped improve the support available to people across Scotland. This service was instrumental in helping ensure housing and welfare rights were defended. 

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In England, time was dedicated to developing a system that prioritises access to webchat for users with the most urgent demand. This involves a method of triage that asks clients a series of questions before transferring them to an adviser. Our definition of an emergency is homeless, threatened with homelessness or at risk of harm from either domestic abuse or poor housing conditions. In the initial test, 85% of emergency advice seekers were triaged. Further work is required to develop this into our live webchat systems. 

With the transformation of our operating model in communities, our telephone and online advice services will continue to be pivotally important. We will continue work on prioritising those with emergency and priority need and to build evidence and insight that can be used to inform our systems-change activities. 

In addition to that role as Shelter’s emergency national service equipping people with the tools and information to assert their rights, these services will continue to gather the critical evidence and insight that informs our work and provides credibility to our campaigns for change. 

Next year, significant resources will be dedicated to procuring and implementing new contact centre technology, replacing the current systems and allowing Shelter to further enhance our emergency response capability. Following the implementation of the new contact centre technology we will revisit the project scope for integrating artificial intelligence with our webchat. 

## Legal services and strategic litigation 

Our Community Legal teams use the law strategically to create change locally as well as nationally. We target our expert legal advice on the key issues impacting 

communities, influencing and challenging poor or unlawful practices to bring about systemic change. 

Last year, Shelter solicitors represented thousands of people at court through the Housing Possession Court Duty Scheme. Many thousands of these people would have lost their home without our representation. Our legal teams fight to assist those who are homeless or faced with homelessness through possession claims and evictions, challenging unlawful evictions, dangerous housing conditions, and discrimination. 

We use the insight gained from our work representing individuals, to use the law strategically to challenge housing injustice, inequality and discrimination more widely. Our legal teams are located in communities across England and Scotland, and we can use our insight to recognise when issues can be addressed through targeted litigation. 

We use strategic litigation to achieve change nationally as well as locally. In 2022/23 we worked with a range of partners to ensure that ‘Awaab’s Law’ was enacted to bring about lasting change. With the passage of the Social Housing Regulation Bill, the entirely avoidable tragedy of Awaab Ishak should not happen again. 

Our Strategic Litigation colleagues have also led ‘super-complaints’ to challenge persistent poor practice and worked with the Property Ombudsman to challenge 'no kids' discriminatory letting practices. On a more local level, examples of improving systems for communities includes work in Sheffield to address problems with the allocation of housing, and Manchester where issues of race discrimination are being challenged. 

Our legal teams are also an invaluable internal resource, providing legal expertise in developing key policy positions and responses to legislation. 

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## National services 

During the year we built on our existing partnership with the Royal British Legion, working through our helpline and with other housing organisations to develop specific support for veterans and serving forces personnel to provide both direct casework support, as well as expert advice, training and awareness raising for Royal British Legion caseworkers/advisers. This is aligned with our strategy to help people understand their housing rights and improving practice through capacity building. 

We secured Voluntary and Community Frontline Sector (VCFS) Grant funding from the Department for Levelling Up, Housing and Communities (DLUHC) to deliver two programmes designed to: increase the capacity and capability of the sector to prevent and relieve rough sleeping and homelessness and deliver specific advice to help frontline workers resolve individual cases. 

We delivered our Professionals team, an integrated approach to supporting other professionals by providing relevant content, training and specialist advice to help other organisations tackle the housing emergency. The programme is also funding some of our systemschange work with local authorities and is providing the opportunity to share good practice to address some of the systemic issues regarding homeless and rough sleeping by working directly with DLUHC and other providers involved in delivering the VCFS grant. 

Our Training Services, which deliver training both commercially and/or as part of grant-funded programme delivery has successfully transitioned out of Covid-19 by building on the growth in interest in online and webinar courses. During 2022/23, we delivered approximately 1,400 webinars as well as 217 face-to-face courses compared to the 54 courses run the previous year. 

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## Scottish Empty Homes Partnership (SEHP) 

This work is funded by the Scottish Government and hosted by Shelter Scotland. The partnership’s remit is to encourage local authorities to work with owners of empty privately owned properties to bring them back into use, where possible as social homes. 

In 2022/23 the partnership was able to bring 1,257 long-term empty homes back into use. 

SEHP have continued to build up capacity within each local authority (LA) to ensure delivery of empty homes work and we have seen more commitments to doing empty homes work, and the need to resource empty homes teams to support the work. 

During 2022/23 SEHP has developed three new strategic partnerships to bring empty homes back into use and has worked with local authorities to develop a strategic framework for them to use to ensure that empty homes work is embedded within the council’s housing strategies. SEHP continues to support empty homes officers and provide advice through their advice service with 441 new contacts made last year. 

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## Helpline case studies 

## **Scotland** 

A client with multiple health issues contacted us after sofa surfing for three weeks following eviction from their previous property. 

Having initially attempted to present as homeless to the local authority and being advised that someone would call her back, the Shelter adviser intervened and learned that the client’s request had been recorded as an advice case rather than a homeless presentation. Our adviser advocated on the client’s behalf for a homeless application to be made. 

The client initially chose to remain sofa surfing but contacted us a second time when she was no longer able to do so. The local authority’s homeless officer incorrectly advised that temporary accommodation was not an option. 

. 

## **England** 

Through our helpline we became aware of another local authority who required people to make their homelessness application via an online form, creating a barrier to accessing services. When Shelter contacted them, they advised that there was no way to speak to anyone in the homelessness department unless we email or complete the online form and that once contact had been made response times were two working days. 

We made a complaint to the local authority who responded positively and have carried out training, changed their approach to ensure that urgent enquiries will get a response by the end of the day and agreed to review telephone access to the homelessness department, as well as the website. 

Our adviser made the client aware of their rights which empowered them to request the temporary accommodation that they are entitled to and come back to us if she needed assistance challenging the charges or suitability of the accommodation. 

The client contacted us for a third time as the temporary accommodation offered was unsuitable for her health needs. As the accommodation breached the Unsuitable Accommodation Order, after the seven days the adviser was able to successfully challenge it. The client was moved to a temporary furnished flat and issued an unintentionally homeless decision. This outcome was only due to the expert advice and advocacy provided by Shelter Scotland. 

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## Year in numbers 

Last year we helped over twenty thousand households through our Emergency Helplines (15,555 England and 4,704 Scotland). Of those calls: 

54% 55%[were homeless or high risk of homelessness] 

43% 36%[were in the Private Rented Sector (PRS) ] 30% 21% wanted to keep their current home 

25% 15% needed temporary accommodation were seeking to improve their circumstances by leaving their 11% 14% current home 57% 56%[were female ] 38% 36%[had dependants ] 

Our webchat services had 23,340 webchat conversations (14,026 England and 9,314 Scotland) and over a thousand social media contacts seeking advice. 

Our teams of lawyers, legal advisers and support staff worked with over four thousand households across England and Scotland, and in England we saw 3,196 people through our court duty schemes. 

Our community-based teams helped 16,974 households (15,846 England and 1,128 Scotland). 

Our specialist services for professionals responded to 16,588 queries from other organisations needing our housing expertise. 

Justice Services supported 3,453 in custody and in the community with their housing needs. 

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## A shift of power in our fight for home 

Our ten-year strategy is predicated on our community based teams becoming bases for change within their communities, moving away from transactional advice centres to places to galvanise local activism and address systemic causes of homelessness and housing insecurity. Our aim is to be there for individuals and communities who are facing bad housing and homelessness. 

That move to a systems-change model is a response to the growing demand for our services. Shelter cannot meet all the need we see and if our services remain demand-focused, we risk papering over the cracks in unfair systems and missing opportunities to highlight the complexities in the way the housing emergency impacts people we connect with. Our impact is greater when we are challenging and fundamentally changing housing systems. 

Our community based teams continue to work with individuals, and through that work we gain an understanding of the complexities and systemic inequalities at the heart of the housing emergency. This results in us being better placed to link lived experience, community voices and frontline knowledge with our national campaigns, drawing on evidence, insights and ideas from across our Hubs. 

housing injustice and works to identify and understand the underlying conditions and beliefs which influence those systems, while working with others, including those most affected, to dismantle barriers and build better systems together. 

## Change programme 

To achieve the new operating model a change programme was established to transform the way we operated in England. This included a review of operating processes, changes in ways of working including how we monitor and evaluate our work as well as restructures to provide the correct environment to deliver against our strategic goals. 

## Our community model 

The community model is the way we work locally, using a range of activities to engage with and work with local people and community groups on local housing and homelessness issues. It’s called the community model, because we reach people and community groups by proactively seeking them out, in addition to working with those who approach Shelter themselves. This provides us with insight into the lived experience of the housing emergency at a local level. 

Working in this model, our communitybased teams are providing: 

- housing advice and support; 

While our ultimate goal remains increasing the supply of social housing as the solution to the housing emergency, our community-based teams continue to work challenging the unfair, discriminatory and broken housing systems that prevent the delivery of and access to homes. That work is delivered collaboratively within local networks, addressing the root causes of housing issues within communities. 

- legal advice and representation; 

- • rights awareness work including workshops with local groups and communities; and 

- campaigning and influencing. 

The purpose of these activities is to achieve systems change locally using tools such as partnership working, coproduction and involvement. 

Our approach in communities recognises the complexity of the systems causing 

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## Community organising 

Over the past four years we’ve been building our community-organising capacity, and now have community organisers across England and Scotland. 

In England, we have an organiser based in each of our Hubs. In each area, organisers have been listening to communities, coaching, and training people in campaigning, and working alongside them to take action on the housing issues affecting them. At the same time, they’ve been helping people connect their local struggles to the wider housing emergency and the need for more social housing, including through rights awareness work. In Scotland, the year was spent forging ahead with developing the community-organising approach in each of the four cities we work in. We now have active housing campaign groups in each city who are independently and successfully fighting for housing rights. In Scotland, the organising team have also delivered the first campaign leadership course where campaigners can learn how to become activist leaders. 

Most recently, in Norwich we have supported renters in the city to form the Norwich Renters Collective, and helped them campaign for more social housing to be included in one of the largest proposed developments in the city in decades, winning commitments from the council to identify three new sites for new social housing. In Birmingham, we supported people to come together and get Birmingham City Council to commit to improving the housing services they provide. In January, the campaign successfully persuaded the council to pass a motion declaring a housing emergency in the city – one of the first cities in the country to do so. The Birmingham campaign was recognised by the Sheila McKechnie Foundation (SMK) campaigning awards. In Bristol, we supported tenants in their demands for action to tackle the cost of renting, which brought about the city’s first Living Rent Commission to explore how 

politicians can act to tackle the high cost of housing. 

## Lived experience 

Putting the voices of people with lived experience of the housing emergency at the heart of Shelter is a headline goal for the organisation. We operate and deliver a range of activities with people with lived experience, enabling them to use their experience to influence, shape and change Shelter’s work. 

We widened the scope of involvement activities over the last year to the whole organisation, with over 350 people with lived experience participating in involvement activities. This has included activities supporting income generation, activism activities, recruitment and equity and inclusion initiatives. Lived experience groups have been developed in Hubs across England, which have been key in shaping local community priorities. 

A community-reporting project was delivered in Manchester, where participants were trained as community reporters, to gather stories, which provided critical evidence around the local housing emergency. 

A toolkit and associated resources have been developed to upskill staff and volunteers combined with a series of workshops to scope the opportunities to further embed coproduction across the organisation. 

We continued to deliver the Getting Real Opportunities of Work (GROW) Programme, supported by partnerships with Société Générale and Adecco. A new Changing Futures partnership was also launched in Greater Manchester, which delivers five GROW Traineeships hosted within local authorities in Greater Manchester. 

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## GROW case study 

I never thought that the GROW traineeship would make such a big difference to me. It’s been a lifechanging experience and a stepping stone to my success. It was so important for me to be offered part-time hours that were flexible. The roof I now have over my head is because of the GROW traineeship. Having been homeless, living in a refuge and being on the homeless register, I know exactly what it’s like to live in temporary accommodation. Going through that made me realise that I wanted to go on to support others. This GROW role has meant that I’ve been able to start working with clients; I now even have my own caseload. I’ve completed so many other trainings and completed most courses that Shelter have on offer. I’ve recently completed the Housing Law Foundation course and am even an appointed Mental Health First Aider for the organisation. 

You can express your voice and your opinions and be listened to. I am a member of the anti-racism steering group and on the SWANN Committee (Shelter, Women and Non-binary Network) which gives me a dedicated place to share my experiences. I’ve also been matched with a career mentor provided by programme funders Société Générale. My mentor is excellent and has helped me so much. They’ve helped me prepare my CV and given guidance on how to structure job applications. 

The GROW traineeship has really made my dream come true as I wanted to give back to the community. This role will lead me to the next step on my journey. 

## **GROW trainee** 

I’ve recently had the opportunity to sit on an interview panel, I’ve attended an awards ceremony and attended workshops with the anti-poverty alliance. I’ve also had the chance to get involved with local campaigns, I’ve literally been given the opportunity to fight injustice! The best part of the programme is the support from the GROW officer. They are always there and make me feel like a priority. It’s been great getting to know the other GROW trainees too. It makes me feel strong when we share our views and our experiences. 

My line manager has been really supportive, and I know I can go to her when I need support. I was also assigned a ‘buddy’ on the team. But it’s not just my line manager or assigned buddy, the whole team is always there when I need support. One of the service managers shadowed me recently and they told me my way of approaching and working with clients is fantastic! 

I have worked and volunteered in lots of other places before, but I have never seen an organisation that is so inclusive. It is an organisation that accepts you. 

During the year, ten GROW trainees were recruited, with 70% moving on to further employment, volunteering or training. We have continued to develop pathways from involvement into volunteering and employment. In the last year, three lived experience participants progressed from involvement groups to GROW traineeships, in addition to many others moving into other roles internally and externally. 

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## Community organising case studies 

## Dundee 

Through our Time for Change work in Dundee, our development workers were told by people with lived experience of homelessness that hostels across the city were not meeting their needs. This was particularly true for those who were most vulnerable and those with multiple and complex needs. We had already been concerned about the number of people who were struggling to access temporary accommodation within the city. 

Our team met with managers in the housing and homelessness team in Dundee City Council and two people with lived experience shared their first-hand experience of staying in hostels, which emphasised the poor standards and trends we had identified through our work in the city. Collectively we agreed that we should create an opportunity for residents and people with previous lived experience of staying in the hostels to create a charter which all hostels in Dundee would sign up to and implement. 

This charter is now in place and regular meetings have been held with providers to identify best practice and to help them to work towards these standards and practices, improving and aligning experience across the hostels in the city. We are continuing to visit hostels regularly and have seen a marked improvement. 

## Birmingham 

Our community organiser in Birmingham supports the Birmingham Fair Housing Campaign, a campaign that has brought together people from across the city affected by the housing emergency. 

The Birmingham Fair Housing Campaign has developed the People’s Manifesto for Fair Housing, outlining the changes people want to see. Having launched their campaign last year, most recently the group secured the passage of a city council motion to ‘Declare a Housing Emergency in Birmingham’, which commits the council to stepping up its actions and improving its housing services across the city. 

Renters, social housing tenants, temporary accommodation residents, unions, faith groups and other civil society organisations worked together to meet with their own councillors and build support for the motion, which was voted on and passed in January 2023. Now that the campaign has convinced the council to face the problem, they’re working with them to implement the changes needed to tackle the emergency. 

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## Norfolk 

In Norfolk, our community organiser supports the Norwich Renters Collective, which has brought renters together to call for more social housing in Norfolk, recognising that the best solution to terrible housing in the private rented sector is truly affordable and decent social housing. 

The campaign group has focused their energy on increasing the amount of social housing being built in new developments in Norwich, and calling on the council to live up to their commitment to ensuring that a third of all new housing built is affordable housing in every new development – a promise they have hitherto been failing to deliver. 

The campaign mobilised over 3,000 people across Norwich to call for more social housing in the Anglia Square development and challenge the planning application. While the campaign didn’t win the vote, they did secure a commitment from the council to identify three new sites for development in the city, and that these new sites will be made up of 100% social housing. 

The next step is to make sure the council lives up to this commitment and gets the social housing people need in Norwich built. 

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## Fair, honest and open fundraising 

We’re committed to fair, honest and open fundraising and strive for the highest possible standards. Shelter is registered with the Fundraising Regulator, and is committed to complying with the Fundraising Promise. 

Shelter is also a member of the Chartered Institute of Fundraising, with our in-house face-to-face fundraising programme certified under their accreditation scheme. 

We have policies and procedures in place to protect people in vulnerable circumstances, and insist on checking the policies of our suppliers as part of any tender process. We always give our supporters the opportunity to opt out of either any further contact or specific methods of communication as part of every approach for donations. We have agreed processes to screen people against the Telephone Preference Service register when selecting them for an approach by telephone and regularly review our mailing lists for potential new supporters against industry-standard bereavement registers and the Mailing Preference Service. 

Shelter does not share or sell data with third parties for their marketing benefit and we ensure we put in place appropriate intervals between fundraising approaches (for example, the maximum number of cash appeal mailings someone would receive is nine per year) and we cap the number of telephone contacts for existing Direct Debit supporters, limited to no more than one every three months. 

During 2022/23 we worked with: 

- Three fundraising agencies on our Regular Giving programme. Two are members of the Chartered Institute of Fundraising and the Fundraising Regulator. We monitor their activities by having our staff shadow them and through quality checks during welcome calls in order to maintain high standards and agreed approaches. 

- Five face-to-face fundraising agencies on our Lottery programme. Three are members of the Chartered Institute of Fundraising and four are registered with the Fundraising Regulator. We conduct shadowing and mystery shopping of these agencies internally and through a mystery shopping agency. 

- One calling agency who is a member of the Chartered Institute of Fundraising and registered with the Fundraising Regulator. To monitor their activities, we receive sample recordings of telephone contacts, and can request specific recordings where concerns are raised. 

We regularly provide training sessions for all our agency partners to make sure they meet our high standards. 

## Complaints 

Shelter has thousands of clients, supporters and campaigners and as such millions of opportunities to engage with them through a range of channels, including face-to-face in our shops, and our events, via our publications and direct mail, on the telephone as well as virtually. We welcome feedback, including complaints, and learn lessons whenever concerns are raised. Complaints about our fundraising activities are managed via our Supporter Helpdesk and during 2022/23, we dealt with 116 complaints this way. 

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## Our Fundraising Charter 

We will: 

- use your donations carefully and responsibly; 

- respect your wish to assign a gift to a specific aspect of our work; 

- thank you for your support, and let you know what your donations do; 

- fund work with a demonstrable, positive impact on the lives of homeless and badly housed people, while keeping support costs to a minimum; 

- follow the Fundraising Regulator’s Code of Fundraising Practice, so people know our activities are open, fair, honest and legal; 

- use your preferred communication channels – and if these change, we’ll adapt them swiftly to suit your needs; and 

- acknowledge any queries and complaints within three working days, and respond fully within ten working days via your preferred method of contact. 

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## Our culture 

At Shelter, the focus on our culture and how we do things here is crucial. We recognise that embedding our culture requires capable, confident, and inclusive leaders who are able to lead by example to deliver our strategic plans. During the year we prioritised investment in the organisation’s leaders with the launch of our Leadership Development Programme (LEAD). The LEAD framework is an exciting new approach to leadership and management development, is centred around leadership habits and is designed to create a more inclusive culture. It is specifically aligned to our strategic objectives. 

input on key strategic projects as the voice of Shelter and Shelter Scotland staff alongside our recognised trade union. In 2022-23, our Beacons network shaped our Affinity Group Policy, Equity and Inclusion Strategic Scope and the question set for measuring our culture through our staff and volunteer engagement survey. 

We continued to act on the findings of our staff and volunteer engagement survey, focusing on the continued development of our anti-racism plan and acting on the results of the areas for improvement. We also laid the groundwork for the full engagement survey that took place in May 2023, which helped us gain greater understanding of all the great things about working and volunteering at Shelter, as well as areas for improvement. Through understanding these results, we will continue to work towards embedding a culture centred around fearlessness, compassion, inclusion and trust. 

These staff surveys measure engagement across the organisation. The most recent engagement score was 76% (on a response rate of 58%). The survey shows significant improvements since the 2018 survey with trust identified as the area most requiring attention. In response, a series of organisation-wide workshops and masterclasses focused on trust were undertaken during the year. 

We celebrate and embed our culture in part through our network of Culture Beacons. Our monthly network meetings bring together colleagues from across the organisation to share stories of our culture in action, highlight where there is potential to build on our culture and 

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## Anti-racism 

In September 2022, we marked National Inclusion Week for the first time with various events including celebrating our networks, equity and inclusion pledges from our Executive Leadership Team and a talk on intersectionality from members of the Executive Leadership Team. 

The Equity and Inclusion Strategic Plan was finalised during the year. The approach taken to the plan was an ‘inclusion by design’ approach, with a focus to co-design this strategy with Black and People of Colour, retail staff and volunteers, underrepresented groups and people with lived experience of the housing emergency. Three key interventions were identified, including leadership development and progression, recruitment and retention, and wellbeing and psychological safety. We have successfully tendered providers to support the delivery of Psychological Safety and Succession Planning programmes. 

We also launched the Equity and Inclusion Corporate Partners Network. The network provides an opportunity for colleagues who support equity and inclusion activities within their organisations to come together to share information and ideas and collaborate on new initiatives. It is focused on professionals working within the equity and inclusion area to gain practical strategies and insight to bring about lasting and meaningful change. 

Shelter became members of Inclusive Employers and have also begun the process to become an independently assessed accredited Inclusive Employer. We aim to understand our organisational culture from an external inclusion lens and are committed to developing a workplace culture that is meaningful and positive. This will enable us to measure our current position, identify improvement and learn to embed best practices within our organisation. 

Three leadership workshops were delivered which aimed to develop a mutual understanding of all leaders’ roles in delivering our goal of being recognised as an authentically anti-racist organisation. 

The next steps for anti-racism at Shelter are to finalise the organisation’s antiracism priorities and outcome measures and identify the challenges and best practice through the Anti-Racism, Equity and Inclusion Forum (AREIF) and working towards our Inclusive Employer's accreditation. 

## Anti-racism survey 

Our first anti-racism survey in 2020 gave us a valuable baseline to view racism and related issues. In 2022 we conducted a follow-up survey allowing us to keep track of where we are improving and what we need to do better. Improvements the survey showed us were: 

- an increase in perception of antiracism being seen as a leadership priority; 

- a reduction in staff perception of Shelter having a 'blame culture’; and 

- that leaders make more effort to talk about anti-racism and encourage staff to learn about it. 

Following a review of the main recommendations summarised, we have also developed an action plan to address outstanding items such as psychological safety. 

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## Our people 

It’s through the passion, skill and drive of our colleagues and volunteers that we’ll change the country and defend the right to a safe home. 

We employ over 1,000 people and have over 2,000 volunteers in addition to supporters, campaigners and partners who all play a pivotal role in the broad public movement, making sure that no one fights bad housing or homelessness on their own. 

We employ skilled, experienced, and passionate advisers, support workers, solicitors, peer mentors and many other housing and homelessness specialists who deliver our critical services through face-to-face services, by telephone or online in England and Scotland. We also employ campaigners, policy experts and researchers, ensuring that the evidence we get from working with people on a daily basis through our services is translated into our campaigns and the creation of a movement that will bring lasting change. All our work is supported by fundraisers, and support functions that ensure the organisation is enabled to deliver the strategy. 

## Pay and reward 

We continue to progress our work to create full transparency of all pay grades. During the past year we have invested in harmonisation of pay across all our operations, ensuring that we achieve equity by improving terms and conditions so that all colleagues are treated the same, regardless of their area of work. We are proud of our benefits package and our focus on wellbeing. During 2022, colleagues were allocated three additional day’s paid leave to take as ‘Wellbeing Days’. 

Like many organisations, in the context of an inflationary spiral, with a cost-ofliving crisis, Shelter was subject to a pay dispute which resulted in ten days of industrial action. This was resolved when 

Shelter agreed an extraordinary pay settlement with its staff. At the heart of the settlement was a need to reflect the financial burden facing all colleagues, treating them fairly and with respect, while at the same time recognising the tremendous challenges facing the charity, thereby ensuring that we can still deliver on our mission. This unique set of circumstances required an extraordinary response. This year we continue to strive to agree a settlement that reflects the best that we can do - a pay award that is fair for all, balanced and sustainable for our future, that demonstrates our care for our people and reflects our collective passion to deliver our mission _._ 

## Volunteers 

We mobilise volunteers in support of our strategic objectives. Volunteers deliver a range of roles across the organisation, which vary in the type of activity, the amount of time they give and their responsibilities. They play an important and valued part in generating income, delivering community priorities and building our movement for change. In 2022/23, 2,450 individuals contributed 224,440 hours to our fight for home. 

This year, we have introduced volunteering to two new areas of Shelter – Community Fundraising and Campaigns. These roles offer new, flexible ways for people to give their time to tackling the housing emergency. We have continued to take significant steps in developing the volunteering experience, improving the recruitment process, and the quality and consistency of volunteer induction and learning, particularly focusing on engaging volunteers in anti-racism learning. We also dedicated significant resources developing a learning offer for volunteer managers, crucial to volunteers’ experiences with Shelter. We have also introduced a Volunteer Council which will provide an opportunity to share power and to be led by volunteer experience and insight. 

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## Sustainability and carbon footprint 

Shelter is a large energy consumer, and we have been committed for many years to reducing our energy use and carbon footprint in response to the growing climate emergency. We take every practical opportunity to reduce our energy consumption and carbon footprint. 

Shelter’s total energy consumption for the financial year was 2,277,326 kWh, a decrease compared to the 2,588,330 kWh the previous year. 

Shelter’s total emissions using locationbased reporting was 450.03 tonnes CO2e compared to 549.26 tonnes CO2e the previous year. 

The intensity ratio is 6.109 (2021/22 - 7.312) based on tonnes CO2e of emissions versus financial year group turnover (£73.67m). 

The switch to hybrid working has had an enormous impact on the carbon impact of the organisation, through the reduced frequency of commuting and energy costs for our properties. In addition, the organisation’s estate of offices has changed, with increased use of serviced offices and smaller premises in general. Across all sites where Shelter has control, the fitouts have included the installation of energy efficient lighting and heating systems wherever practical. 

The implementation of a dedicated carbon reduction plan has been delayed due to resource constraints, however we remain committed to reducing our impact on the environment. We are currently working towards ESOS Phase 3 and are in the process of conducting site audits and scrutinisation of data. We intend to use the information produced and build on it to reduce Shelter’s carbon footprint and intend to complete a full carbon footprinting exercise, and develop carbon targets aligned with practical steps to reduce our emissions as well as a circular waste plan. 

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## Energy use disclosure 

Consumption of gas and electricity for the reporting period were as follows: 

Consumption (kWh) 

||Consumption (kWh)|
|---|---|
|Gas|291,828|
|Electricity|1,777,566|



Consumption and emissions for the reporting period were as follows: 

|Scope|Energy Type|Consumption|Location-Based<br>Emissions|Market-Based<br>Emissions*|
|---|---|---|---|---|
|||(kWh)|(CO2e)||
|One|Natural Gas|291,828|53.17|53.17|
||Transport Fuels|16,507|4.22|4.22|
||Air Conditioning<br>Refrigerant Leaks|0|0|0|
|Two|Electricity|1,777,566|343.75|0|
|Three|Transport Fuels from<br>Employee-Owned<br>vehicles|191,425|48.90|48.90|
|Total||**2,277,326**|**450.04**|**106.29**|



*Market-Based Emissions - electricity purchased and consumed was supplied from sources accredited by Ofgem as renewable and backed by Renewable Energy Guarantees of Origin (REGO) certificates from the supplier. 

## Methodology 

When calculating total energy consumption, Shelter uses verifiable data where reasonably practicable. In this report we have used DEFRA Conversion Factors 2022 to convert: 

- electricity and gas consumption in kWh to tonnes CO2e; 

- transport fuel consumption (either in litres where available or in miles where litres is not available) to tonnes CO2e and to kWh; and 

- refrigerant usage in kilograms to tonnes CO2e where applicable. 

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We are so grateful to everyone who has chosen to support Shelter and helped power the fight for home. Every donation we receive goes to ensuring the right to a safe home is protected. 

In particular, we’d like to thank the following: 

## Supporters 

|Andrea Hopkins and<br>Andy Phillipps<br>Andrew Sutton<br>Andrew Wilson<br>Baillie Gifford<br>Ben and Rebecca<br>Spiers<br>Professor Charles<br>Baden-Fuller<br>Colin Temple<br>David Cairns<br>David Lubin<br>Deborah and<br>Laurence Harris<br>Diarmuid Ó Séaghdha<br>Mr and Mrs D Peck<br>Edward and Carole Hill|Gareth Williams<br>Giles Wright<br>The Golding Family<br>Gordon Cooper<br>Guy Morton<br>The Harris Family<br>Jamie Newell<br>John Young<br>Jo Willett and Stuart<br>Rock<br>Judith and David<br>Hankinson<br>Judith Rattenbury<br>Justin Ash<br>Lindsey Alln|Lisa Anderson<br>Margaret Sheppard<br>Mark Sorrell for<br>Goldman Sachs Gives<br>Martin Wolfson<br>Miel de Botton<br>Mike Rosenberg<br>The Mitchell<br>Charitable Trust<br>Neil Adleman<br>Nicholas Janni<br>Paul Butcher<br>Peter Backhouse<br>Peter Oliver<br>Mr and Mrs R Swann|Richard Cormack<br>Robert Davis<br>Robert and Nicole<br>Lind<br>Sarah Morgan<br>Saskia Gavin<br>Sir Simon and Lady<br>Jill Campbell<br>Tim Hincks and Pippa<br>Healy<br>Tom Anderson<br>The Trillium Trust<br>TY Danjuma Family<br>Office<br>Victoria and Edward<br>Bonham Carter|
|---|---|---|---|



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## Legacies 

We are indebted to those supporters who remembered Shelter with a gift in their will. Their determination to leave real change for people facing the UK’s housing emergency lives on in our work today. 

|A Wallace<br>Adam Marshall<br>Alan Mackay<br>Alan Smith<br>Alicia Myers<br>Andrea Newman<br>Anne Marston<br>Barbara Kitchen<br>Barbara Semple<br>Barbara Statham<br>Betty Thackeray<br>Brenda Peach<br>Caroline Smurfit<br>Christopher Mayer<br>Christopher Peters<br>Colin Morris<br>Daphne Thomas<br>David Dobie<br>David Griffiths<br>David Hadley<br>David Hannaford|Diana Martin<br>Doreen Meehan<br>Dorothy Scruton<br>Edith Gillatt<br>Eleanor Bruce<br>Elizabeth Ryland<br>Elizabeth Walker<br>Florence Hicks<br>Francis Thackeray<br>Freda Goodhead<br>George Shearman<br>Grahame Downer<br>Hazel Murdoch<br>Helen Robinson<br>Hilda Stoddard<br>Ian McIntyre<br>Jack Grunwell<br>Joan Greenleaf<br>Joan Meunier<br>Joan Zurick<br>John & Muriel Davey|John Gorton<br>John Green<br>John Orcott<br>John Salingar<br>John Stebbings<br>Josephine Macnamee<br>Keith Jones<br>Keith Mathewson<br>Kenneth Hind<br>Laura Bisset<br>Leslie Mellor<br>Lynette Pelan<br>Maisie Bond<br>Marcus Nicholson<br>Margaret Davidson<br>Margaret Durie<br>Margaret Foxall<br>Margaret Maddren<br>Margaret Salter<br>Margaret Ticehurst<br>Margaret Wolfson|Marion Lees<br>Mark Fitton<br>Mark Stephenson<br>Mary Lund<br>Maurice Cahalan<br>Maxim Darvell<br>Patricia Coote<br>Patricia Littlewood<br>Patricia Muir<br>Patricia Snow<br>Patricia Worley<br>Pauline Fisher<br>Penelope Gregory<br>Peter Jordan<br>Peter Ryland<br>Sheila Brooks<br>Sheila Stay<br>Stanislaus Sullivan<br>Stefan Kay<br>Sydney Jones<br>Victoria Wisher|
|---|---|---|---|



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## Trusts and foundations 

|The 29th May 1961<br>Charitable Trust<br>abrdn Financial Fairness<br>Trust<br>Albert Hunt Trust<br>Ann Jane Green Trust<br>The Barbour Foundation<br>BBC Children in Need<br>The Bentley Family Trust<br>CB & HH Taylor 1984 Trust<br>The Constance Travis<br>Charitable Trust<br>Cruden Foundation Ltd<br>David William Traill Cargill<br>Fund<br>DG Charitable Settlement<br>DMF Ellis Charitable Trust<br>E M Chapman Discretionary<br>Will Trust<br>Evan Cornish Foundation<br>The Eveson Trust<br>The Franey Foundation<br>Garfield Weston<br>Foundation<br>George Cadbury Fund|Hugh Fraser Foundation<br>Hyde Park Place Estate<br>Charity<br>Ingram Trust<br>J & J R Wilson Trust<br>Mrs J S Innes Charitable<br>Trust<br>Sir James Knott Trust<br>John James Bristol<br>Foundation<br>Joseph Ettedgui<br>Charitable Foundation<br>Joseph Rowntree<br>Foundation<br>The Legal Education<br>Foundation<br>The Liz and Terry Bramall<br>Foundation<br>The Lyons Charitable Trust<br>M.K. Rose Charitable Trust<br>Mabel Cooper Charity<br>The Material World<br>Foundation<br>The National Lottery<br>Community Fund<br>Nationwide Building<br>Society – Community<br>Grants<br>Nationwide Foundation<br>The Northwood Charitable<br>Trust|Oak Foundation<br>Odin Charitable Trust<br>The Options Fund<br>Pilkington Charities Fund<br>Miss R C R Angel Charitable Trust<br>Royal British Legion<br>Souter Charitable Trust<br>St Katharine's Fund<br>Tay Charitable Trust<br>Oak Foundation<br>Odin Charitable Trust|
|---|---|---|



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## Corporate partners 

Corporate partnerships are vital to helping us end the devastating impact the housing emergency is having on people and communities. Together, we use our voices to create lasting change through fundraising, awareness raising and campaigning. 

|Adecco Group UK&I<br>AllSaints<br>Art Marketing<br>ARUP<br>B&Q/Kingfisher<br>Birmingham Midshires|British Land<br>Dreams<br>FatFace<br>First Direct<br>Freshfields Bruckhaus<br>Deringer<br>HSBC UK|Ibstock Group<br>IKEA<br>L’Occitane<br>M&S<br>Mitchells & Butlers plc<br>Nationwide Building<br>Society|Network Rail<br>SCS<br>Société Générale UK<br>TCC Foundation<br>Unilever<br>Wayfair|
|---|---|---|---|



## Stock generation 

Stock generation provides a unique way for organisations to help tackle the housing emergency while simultaneously supporting sustainability in the retail sector. These partners donate pre-loved or end-of-life stock, which is then sold through Shelter’s chain of community and boutique shops. Funds raised from sales help to support our vital work across the country. 

|M&S<br>ACS<br>AllSaints<br>Fallain Fitness|Fat Face<br>Furniture and Choice<br>IKEA<br>Nobody’s Child|NRBY<br>Office Shoes<br>Oliver Bonas<br>Quiz|SCS<br>Urban Outfitters<br>Wayfair|
|---|---|---|---|



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## Structure and management 

Shelter, the National Campaign for Homeless People Limited (trading as ‘Shelter’), is a registered charity (number 263710 for England and Wales and SCO02327 Scotland) and a company limited by guarantee (number 01038133) and is governed by its Memorandum and Articles of Association which were last updated in April 2020. 

## Board of Trustees 

Shelter’s Board of Trustees are also the company directors for the purposes of the Companies Act, and have overall responsibility for the strategy, direction, management and control of the charity. The Board met formally six times during the year. 

The Board consists of twelve members who give their time on a voluntary basis, receiving no remuneration or other benefits. Out-of-pocket expenses, along with any other costs incurred by trustees in the furtherance of their duties, are repaid by the charity in line with the Trustee Expenses Polices. Details of these expenses are set out in note 19 to the financial statements. 

Our trustees are recruited using open recruitment processes. Vacant positions are advertised and promoted externally through relevant networks. We place emphasis on having the appropriate balance of skills and experience on our Board, as well as aspiring to have a Board that represents the public and audiences we were established to serve. 

Trustee terms of office are normally two three-year terms, with an exceptional third two-year term on the recommendation of the Board. All new trustees complete an induction programme and are expected to adhere to Shelter’s Trustee Code of Conduct 

that includes the Seven Principles of Public Life (‘Nolan Principles’). 

We take our governance responsibilities seriously and aim to have a governance framework that’s fit for purpose, compliant and efficient. 

## Board committees 

The Board has established committees to support the fulfilment of its governance responsibilities. These are: 

- **Scotland Committee** Uses its Scotland-specific knowledge, expertise and presence to support and oversee the development and delivery of our activities in Scotland. 

- **Audit and Risk Committee** Supports the Board with the management of risk, maintenance of systems of internal control to assure financial probity, effective management control and oversight within Shelter. 

- **Committee for Resources and Internal Systems** 

   - Ensures financial and human resources are adequate, and effectively allocated across Shelter, and that internal systems and processes are suitable for the delivery of the Board’s stated strategic objectives and the charitable purposes of Shelter. 

- **Quality and Impact Committee** Supports the Board by evaluating and assessing the organisation’s external-facing activities, to ensure they align with Shelter’s strategy. 

- **Remuneration Committee** Supports the Board in determining policy in relation to terms and conditions of employment (including remuneration) for staff, including the total remuneration of the CEO and the Directors. 

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## Trustees 

**Helen Baker** Chair 

## **Philippe Lintern** 

Vice Chair and Chair of Resources and Internal Systems Committee 

## Co-opted Members 

The trustees have established committees to support the delivery of their responsibilities, and we thank the following for the expert advice they provide: 

## **Scotland Committee** 

**Laurice Ponting** Chair of Quality and Impact Committee 

Linda Bendle 

## **Kezia Dugdale** 

Chair of Scotland Committee 

Sarah Miller 

## **Karen Kneller** 

Chair of Audit and Risk Committee 

**Leonie Foster** 

**Jackie Killeen** 

Ken Gibb 

Annie Mauger-Thompson 

Jamie Kinlochan 

**Jim Strang** 

**John McQuade** 

**Louisa Baxter** 

**Myfanwy Barrett** 

## **Resources and Internal Systems Committee** 

Catherine Jobling 

## **Audit and Risk Committee** 

**Alison Taylor** 

Andrew Martyn-Johns 

**Arshmeena Durrani** 

Steven Board 

## **Steve Haines** 

Manpreet Dillon 

**Harbinder Kaur** – resigned 5 April 2023 

– **Prem Goyal** resigned 18 November 2022 

## **Quality and Impact Committee** 

Jonathan Simmons 

**Jason Arthur** – resigned 9 February 2023 

**Goi Ashmore** – resigned 30 March 2023 Chair of Audit and Risk Committee 

Biographies of all current trustees are available on our website. 

Chris Pitt 

## Insurance 

Shelter maintains indemnity insurance for appointed trustees and officers included as part of the organisation’s commercial combined insurance policy. 

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## Executive leadership 

Overall operational management of Shelter is delegated by the Board to the chief executive and the Executive Leadership team. Shelter has six directorates: 

## Advisers 

**External Auditors BDO LLP** 55 Baker Street, W1U 7EU 

## **Internal Auditors** 

- Communication, Policy and Campaigns 

- Equity, Inclusion and Culture 

- Income Generation 

- Scotland 

- Services 

- Strategy Enablement 

**Polly Neate** CBE FAcSS HonDLaws Chief Executive 

- **Judith Banjoko** appointed January 2023 Director of Services 

**Osama Bhutta** Director of Campaigns, Policy and Communications 

**Crowe LLP** 

55 Ludgate Hill, EC4M 7JW 

**Solicitors Bates Wells & Braithwaite London LLP** 10 Queen Street Place, EC4R 1BE 

**Investment Managers Cazenove Capital Management** 1 London Wall, EC2Y 5AU 

**Bankers Lloyds Bank Plc** 25 Gresham Street, EC2V 7HN 

**Mary Foulkes** OBE FCIPD Director of Equity, Inclusion and Culture 

## **Tim Gutteridge** 

Director of Strategy Enablement 

## **Andy Harris** 

Director of Income Generation 

## **Alison Watson** 

Director of Shelter Scotland 

**Alison Mohammed** – retired Director of Services 

Biographies of all current members of the Executive Leadership team are available on our website. 

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## Measuring success 

Shelter has a framework for performance reporting and the Executive Leadership team and Board receive regular reports on progress against the strategy, and the delivery of strategic plans, key activities and programmes as well as a suite of key performance indicators. 

campaigning. This approach enabled us to consider the impact of the work as nation specific and across both nations we operate in, as a model and in thematic terms. 

There are three impact areas of the Outcomes Framework: 

- change with individuals 

- change with communities 

- change on systems 

During the year we initiated a strategic programme to improve and develop Shelter’s approach to performance reporting. Building on insight and information from across Shelter, our aim is to be able to better understand and articulate how our activities, and those of our partners, contribute to the delivery of our campaign and policy goals, deliver meaningful change for individuals and communities and support continuous improvement of Shelter's activities with the ultimate goal of ending the housing emergency. 

In our Services Directorate the Outcomes Framework has been developed aligned to the change in our community model. This ensures we can monitor the new mix of activity delivered by our community-based teams, understand our progress towards systems change, and promote a learning culture with staff. 

We know systems change involves working with complexity, and so it was important to be open to exploring the many influences on homelessness and bad housing, including local practices, cultures and allocation of resources, as well as the place of housing rights and housing supply. Each community-based team has their own challenges arising from the local external environment. Being present in a city or region makes us part of the community, and helps us identify how barriers, injustice and discrimination play out for people day in, day out. This influenced how we decided on priorities, but there was also a need to connect local insights, lived experience and influencing with Shelter’s strategy and national 

## Safeguarding 

In 2022 Shelter recruited a Safeguarding Manager. The purpose of this new role is to have dedicated specialist resource and oversight of all aspects of safeguarding, covering service users, colleagues and those we come into contact with through our work. The safeguarding manager acts as the designated safeguarding lead for Shelter and Shelter Scotland and leads on safeguarding governance and improvements to practice and policy. A programme of work has been created for 2023/2024 which focuses on improved policies, procedures, training and reporting across the organisation. 

The safeguarding panel, originally established by our Board of Trustees, supports our commitment to safeguarding during the year the panel was paused for a period during recruitment for the Safeguarding Manager. The panel recommenced in June 2023 with a clearer focus and purpose. 

Shelter recognises that safeguarding is everyone’s business. We’re committed to ensuring every person we encounter through our work is able to work with Shelter, free from risk, harm and threat. As such, we’ve invested in improving the governance framework that supports our safeguarding practice. The framework includes trustee sponsorship and involvement in the organisation’s safeguarding panel. 

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The panel ensures that we have a fully cross-organisational approach. This means everyone in Shelter is aware of their responsibilities and is equipped to support our safeguarding practices. That includes an annual report to the Board to provide assurance that our framework and practice are helping us to maintain our commitment, that we keep our framework and practice under review, and that we share and learn from our collective knowledge and experience of safeguarding matters. 

## Data privacy and security 

Data protection and security sit at the centre of everything we do. We take significant steps to uphold the privacy of personal information of our donors, supporters, clients, staff and volunteers. We have implemented privacy by design to fit with our ways of working, and with our robust data governance framework we have been able to minimise the risk in our data processing and data security through the organisation. 

We process data ethically and responsibly and are always open and honest about why we collect, use and store personal data. Personal data is held for no longer than it’s needed, and within our robust data protection framework. Rigorous processes and procedures help us fulfil people’s right to access, portability, erasure and rectification. 

Our privacy notices provide a clear explanation of why we need to process personal data, and we aim to make clear individual’s rights of control over how and when their personal data is used. We respect people’s preferences and wishes about how they want to hear from us. Training our staff, volunteers and contractors is a vital part of our data protection framework, which also includes our robust policies, procedures, processes, data documentation, communication plans, third party supplier due diligence and regular audits 

to ensure the framework is working as intended. If data breaches occur, we take swift action to put things right, learning from mistakes and putting measures in place to prevent future incidents. We take a proactive approach to identifying and managing the risks around IT and data security with our data security framework. The training, policies, processes, external penetration testing, regular audits and reporting maintain high standards of cyber security that are accredited with the government’s Cyber Essentials and IASME framework. Privacy measures are built into the design phase of all our applications and processes as a matter of course. This helps us to remain trustworthy, open and accountable to everyone we encounter. 

In 2023 a company Shelter works with to manage some of our supporter surveys notified us of a data security incident. The breach did not include any sensitive or financial details, and the company conducted a detailed forensic investigation and assured us there was no evidence to suggest the data has been shared further. All of the data has since been destroyed. We reported the incident to the ICO and the Charity Commission. We took all the necessary steps and took the decision to notify supporters out of an abundance of caution. We have and will continue to do everything possible to prevent this from happening in the future. 

## Subsidiary undertakings 

The charity’s wholly owned trading subsidiary, Shelter Trading Limited (company number 02573404), carries out non-charitable trading activities for the charity (primarily the sale of new goods and managing the corporate sponsorship activities). Details are included in note 20 to the accounts. The activity of Shelter Trading Limited generates considerable awareness of the charity’s wider work while raising some of the funds required to support the charity’s operations. 

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## Principal risks and uncertainties 

Taking risks is an inherent part of Shelter’s operations. Without taking risks we will not be able to deliver our strategic plans. The organisation has a well-developed risk framework designed to support the organisation’s leadership to manage, rather than eliminate risk and supporting informed decision making. The framework supports colleagues to take a consistent approach to identifying and managing risk, ultimately ensuring risk is managed within the Board-agreed appetite and tolerance. 

The expertise of Shelter’s staff is essential to the identification, evaluation and management of risks. Our approach recognises six primary risk types (strategic, operational, compliance, financial, reputational and cultural) and we consider all risk against the risk to the organisation, its people and the delivery of our strategic aims. 

The Audit and Risk Committee reviews the risk register regularly and approves the annual internal audit plan which includes reviews of areas of significant risks. The committee receives regular reports from the internal auditors on the effectiveness of Shelter’s internal controls, the delivery of the audit plan and the implementation of audit recommendations. 

Shelter’s trustees determine how much risk the charity is willing to take in the pursuit of its objectives (its risk appetite) as well as changes requiring the charity to operate an appropriate risk management framework. The Audit 

Committee reviews the operational effectiveness of the risk management and internal control systems and it reports its findings to the Board, identifying any matters on which it considers action is needed, and making recommendations on the steps to be taken. 

For major activities, projects and programmes, Shelter adopts standard governance approaches to ensure the activities are properly planned, managed and implemented. Risk management is a key responsibility of project teams. 

Our principal risks are shown in the following tables. This is a summary of the more detailed risk register entries including mitigations. 

## Reserves risk 

Shelter’s reserves are maintained in line with Charity Commission guidance to mitigate against and manage risks to the organisation, as well as to invest in new opportunities. Rather than calculate reserves based on a number of months’ expenditure, Shelter takes a risk-based approach. The organisation’s leadership and Audit and Risk Committee regularly review and analyse the financial risks faced by the organisation and 

recommend to the Board a suitable level of financial reserves. This analysis considers both the organisation’s and external circumstances, as well as Shelter’s activities and principal risks. The aim is to ensure a level of reserves adequate for Shelter to survive economic shocks without compromising on our strategic aims. 

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## Strategic risk 

Strategic risk are those risks to the delivery of our strategy and strategic plans. That includes the strategy becoming less effective at addressing the housing emergency, the organisation being unable to deliver our goals, or the goals being less or no longer relevant. That could include, for example, shifts or increases in service demand, changes in the landscape in which we operate or changes in external expectations of the organisation. 

|**Risk**|**Comment**|**Management / Mitigations**|
|---|---|---|
|Failure to build and<br>maintain a movement|Addressing the housing emergency means convincing the public<br>that there is an emergency and galvanising them to act and<br>demand change. We recognise a broad public movement as<br>essential to addressing the housing emergency and therefore<br>failing to build effective, engaging activities and journeys that<br>drive supporters to join our movement (locally or nationally) will<br>mean our strategic goals cannot be achieved.|• Our networks of community organisers; community fundraisers and the<br>local community teams they work within are embedded across<br>communities in England and Scotland.<br>• Our local and national partnership building approach means we are<br>influencing wider civic society.<br>• We have key metrics and performance indicators around the health of that<br>supporter movement that allows for corrective action to be taken as<br>necessary.|
|Financial Risk|Internal and external financial pressures result in a greater level<br>of financial risk to the organisation. These range from<br>inflationary cost pressures to greater competition and<br>uncertainty in fundraising.<br>We no longer have the level of reserves we held previously,<br>meaning the financial risk to the organisation has changed. This<br>is ameliorated by the organisation’s access to lending if<br>necessary.|• Shelter has robust processes for budgeting, financial modelling,<br>reporting, and forecasting that supports the organisation’s leadership to<br>take informed timely decisions to manage Shelter’s finances.<br>• Over the past few years, we have implemented new budgeting and<br>forecasting tools that give budget holders more access to information,<br>alongside developments in training to improve capability.<br>• Robust financial controls supported by access to short-term borrowing if<br>required allow the management of cashflow and maintain a risk-based<br>reserves policy, monitored by our trustees.|
|Political Context<br>and Relevance|There are multiple competing priorities for policymakers,<br>ensuring the salience of housing and homelessness issues is<br>critical to the delivery of our strategic aims. The last few years<br>have shown that seismic changes in the political landscape can<br>come quickly, and Shelter needs to ensure the continuing<br>relevance of housing and homelessness issues.|• Shelter has a proven ability to influence decision makers and policymakers<br>(locally and nationally) as well as galvanise a wider movement of<br>campaigners and civil society towards our campaign and policy aims.<br>• Our new brand, positions Shelter to campaign on the housing emergency<br>and help the organisation better articulate how we view equity as a key<br>part of our social justice mission.|



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|External<br>Perceptions<br>of Shelter’<br>s<br>purpose|The risk that the change to our brand, service delivery model<br>and the associated changes to our fundraising have unintended<br>effects on the organisation’s relevance with the public.|• We undertake regular research and focus groups into brand perception.<br>• We undertake surveys of our supporters to understand their perceptions<br>of the organisation, allowing us to address any misunderstandings of the<br>organisations purpose.|
|---|---|---|
|Social<br>Housing<br>Campaign<br>|Campaigning for government commitments to build a new<br>generation of social homes requires significant investment to<br>address public perceptions of social housing and to hold<br>decision makers to account for commitments.|• This risk is managed through the adaptability of our campaign, we must<br>maintain an ability to respond to opportunities as well as continue<br>advocating a systemic solution rather than a short-term one.|
|Shelter’<br>s Commitment to<br>Equity and Inclusion, Anti-<br>Racism and Lived<br>Experience|A key part of our strategy is that our enemy is social injustice<br>because it denies the right to a safe home, and that equity is a<br>fundamental part of that.<br>Shelter’s commitment to anti-racism has already been<br>scrutinised in the media and there is a continuing risk that the<br>public or key audiences consider race and equity issues as<br>outside of our remit.|• Our campaigns and marketing include messages about how equity is a key<br>part of our social justice mission.<br>• Regular strategic and tactical communications planning.<br>• Our Equity and Inclusion Plan has increased our ability to provide a<br>coherent and clear way forward to address priorities.<br>• The development of 'Inclusive Employer and Volunteering Organisation of<br>choice' as well as other accreditations.<br>• The Anti-Racism, Equity and Inclusion Forum ensures transparency of the<br>work internally.|
|Internal Capability, Capacity<br>and Culture|Shelter’s ten-year strategy was a significant departure from the<br>previous operating model, and with new ways of working post-<br>pandemic there is a risk that the organisation doesn’t have the<br>correct capability, capacity, or culture to deliver the stated<br>strategic aims.|• Ongoing work to nurture and develop organisational culture. This is<br>supported by the work of the relatively new Equity, Inclusion and Culture<br>Directorate who lead the work developing the organisation’s culture.<br>• Shelter’s in-house leadership development programme (LEAD) includes<br>modules to embed the behaviours associated with our desired culture and<br>includes masterclasses on trust and psychological safety.<br>• As well as the general LEAD programme there is a tailored development<br>programme for senior leaders, as well as succession planning exercises.<br>• Delivery of ‘Outward Mindset’ Training has commenced, supporting<br>development of organisational culture and capability.|
|Shelter's position on<br>the Climate<br>Emergency|The climate emergency is a global problem and a significant<br>social justice issue facing the world today.<br>Shelter is taking steps to reduce the organisation’s impact on<br>the environment. There is a risk that our policy and campaigning<br>work calling for the building of a new generation of social<br>housing isn't seen as sustainable or worse is perceived to be<br>irreconcilable with sustainability goals.|• Continued implementation of the energy-saving recommendations<br>including changes to the small number of Shelter-operated cars and vans<br>has already reduced our energy use by 20%.<br>• The internal ‘eco-champions group’ advocate and support Shelter taking<br>further steps to reduce our environmental impact.|



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## Section 172 Statement 

Shelter is a leading housing and homelessness charity which depends on the trust and confidence of its stakeholders to operate. Shelter’s trustees consider that they have complied with their duties regarding Section 172 of the Companies Act 2006 by ensuring the success of the organisation to achieve its charitable purpose. 

Section 172 considerations are embedded in decision making throughout the organisation’s leadership (both executive and non-executive). Shelter’s trustees and Executive Leadership team balance and consider stakeholder interests, including the implications of decisions on employees and the wider workforce in their decision making, and take decisions they believe best support Shelter’s strategic ambitions. 

The Board has delegated day-to-day management and decision making to the chief executive and Executive Leadership team through two formal schemes of delegations. The Executive Leadership team are required to act solely in the furtherance of Shelter’s strategy and charitable objects, ensuring that Shelter’s activities are carried out in compliance with policies approved by the Board. 

Strategic policies are reviewed periodically by the Board or on its behalf by standing committees. The Board also receives updates on the charity’s performance and plans at each meeting, and the standing committees oversee and monitor specific areas of Shelter’s activities. That provides the trustees with assurance that the organisation is delivering the agreed strategy and decisions are taken in compliance with specific policies and agreed controls. The Board and committees obtain assurance that in promoting the success of the charity, due regard is given to the factors set out in Section 172 of the Companies Act. 

Shelter is able to achieve its charitable purpose because of the relationships we foster and maintain with our stakeholders, including our staff, volunteers, beneficiaries, people affected by the housing emergency, our supporters, and key opinion leaders, policymakers and others with significant interest or involvement in housing. The chief executive and other Executive Leadership team members regularly report on partnerships (financial or otherwise), stakeholder relationships, engagement activities and current issues and relevant feedback received from interaction with stakeholders. 

Shelter’s trustees have a duty to promote the success of the charity and, in doing so, are required by section 172(1) of the Companies Act 2006 to have regard to various specific factors, including: 

## **The likely consequences of any decision in the long term** 

The nature of the work Shelter is engaged in depends on long-term thinking. Our goal to tackle social injustice and ensure that the right to a safe home is defended requires identifying the interventions most likely to deliver long-term impact to those affected by the housing emergency. 

Supported by our internal auditors, the Board and the Audit and Risk Committee reviewed Shelter’s principal strategic risks and risk appetite. The risk register is reviewed at every meeting of the Board of Trustees and Audit and Risk Committee and consideration is given to emergent risk, changes to existing risk, as well as changes to the overall risk profile and the organisation’s capacity to take on risk. During the year, action was taken to bring risk within the charity’s appetite in relation to trade union engagement, particularly during the period of industrial action. 

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## • **The desirability of the charity to maintain a reputation for high standards of conduct** 

consider the insight of those with lived experience. 

## **Our staff and volunteers** 

Shelter has been investing time and resource into its internal culture for several years, and the Board has a key role in setting the organisation’s culture and values. The organisation has a variety of policies and controls in place that promote corporate responsibility and ethical behaviour. Areas covered include fundraising and income generation, conflicts of interest, safeguarding, dignity at work and whistleblowing, and these are all reviewed regularly. We expect those we work with (both as partners and suppliers) to apply similar policies to our own in areas such as living wage, dignity at work, safeguarding and modern slavery. We are also developing a ’Do not Tolerate’ statement to embed our antiracism and inclusion work into all that we do. 

## **Engaging with our stakeholders** 

Shelter regularly engages with key stakeholders, and through this engagement we maintain an understanding of their needs and priorities, informing how we develop our objectives and strategic plans. The Board and its committees’ decisionmaking process considers the impact of decisions on relevant stakeholders, where and when relevant. Trustees are provided with assurance that proper consideration is given by its committees to stakeholder interests through regular reports from each committee. 

## **People affected by the housing emergency** 

Through our Lived Experience Insight Team, we regularly involve people with lived experience in the work we do. This is across the breadth of the organisation’s activities; not just service provision, but also our campaigns, our policies, governance and the development of the organisation’s strategic plans and priorities. Time at board meetings has been given to 

Our staff are essential to the organisations effectiveness and the Board regularly considers the impact of key decisions on staff and volunteers. This is received via the executive and through regular engagement surveys, and through engagement with staff representatives both formally through a recognised trade union and staff groups such as the internal culture beacons and affinity groups (Racial Equality Network, LGBTQ+, Women and Non-Binary, Disabled and Neurodivergent). 

## **Our supporters** 

Shelter was established as a campaign for change, and our supporters are essential to achieving our campaigning goals. Regular consideration is given to the views and priorities of our supporters. This includes considerations of research and focus groups of our supporters. The Trustees use this insight to guide the development and delivery of our activity to ensure that our supporters’ views inform our activity. 

## **Key opinion leaders, policymakers and others with significant interest or involvement in housing** 

Shelter works closely with key opinion leaders and influencers – parliamentarians, members of local governments, as well as national and regional bodies to help shape and inform policy to meet our objective of a safe home for everyone. Regular consideration is given to our influencing plans and proposals for how we will work in partnership with other organisations to pursue shared policy outcomes. The regularity with which our research is quoted by parliamentarians demonstrates that we are considered an effective organisation by politicians of all parties. 

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|**Significant Event/Decision**|**S172**|**Action/Impact**|
|---|---|---|
|Cost of Living Crisis and<br>Inflationary Cost Pressures|• Our staff and volunteers<br>• People affected by the housing<br>emergency|• The cost-of-living crisis has exacerbated the already acute housing emergency, and<br>renters already at breaking point are being hit with spiralling rents. The Board<br>considered this and approved the launch of a campaign calling on the government<br>to avert the looming catastrophe by making housing benefit adequate to protect<br>vulnerable renters, cap social increases in social rent at 3% and build the social<br>homes needed to end the housing emergency.<br>• Internally we saw the effect of rising inflation on our costs, expenditure has risen<br>across the organisation due to the inflationary impacts on staff and non-staff costs.<br>• Trustees were actively involved in ongoing pay negotiations with Shelter’s<br>recognised trade union|
|Industrial Action|• Our staff and volunteers<br>• People affected by the housing<br>emergency<br>• The desirability of the charity<br>maintaining a reputation for<br>high standards of conduct<br>• Key opinion leaders,<br>policymakers and others with<br>signifcant interest or<br>involvement in housing<br>• Our supporters|• Regrettably the pay negotiations resulted in a formal dispute with the trade union<br>and a period of industrial action. The Board regularly discussed and considered both<br>the impact of inflationary pressures on staff, as well as the organisation’s ability to<br>meet pay demands.<br>• Trustees were kept appraised of the organisation’s preparations for industrial<br>action and reviewed mitigation plans to ameliorate the impact on our beneficiaries<br>as well as manage risks to the organisation’s reputation. Trustees were also<br>appraised of, and reviewed responses to key opinion leaders and policymakers who<br>had expressed concern regarding the dispute.<br>• The Board ultimately approved the final revised offer accepted by the trade union,<br>bringing an end to the industrial action.|
|National Homelessness Advice<br>Service|• Our staff and volunteers<br>• People affected by the housing<br>emergency<br>• Key opinion leaders,<br>policymakers and others with|• The funding of the contracts to deliver the National Housing Advice Service (NHAS),<br>shared between Shelter, Homeless Link, Housing Justice and St Basils were<br>retendered during 2022. As a result, Shelter was awarded new funding as part of<br>DLUHC’s VCFS Grant Programme for 2022-2025 to fund the development of skills,<br>knowledge and experience of staff and volunteers working in the housing and<br>homelessness sector.|



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||signifcant interest or<br>involvement in housing|• The amount of money secured was less than previous grant funding and there was a<br>corresponding reduction in capacity. Consideration and consultation on alternative<br>models of delivery and funding were discussed.<br>• Ultimately the new grants presented significant opportunity to further our strategic<br>aims of ensuring that people have greater housing security and that individuals and<br>communities are equipped to fight housing injustice and discrimination.<br>• Ultimately the result was a number of voluntary redundancies and staff being<br>redeployed within Shelter.|
|---|---|---|
|Funder Due Diligence|• Our staff and volunteers<br>• Our supporters<br>• People affected by the housing<br>emergency<br>• Key opinion leaders,<br>policymakers and others with<br>signifcant interest or<br>involvement in housing|• As a charity, Shelter relies upon voluntary donations from a variety of sources. But<br>we are also committed to ensuring that our fundraising, including who we accept<br>donations and support from, or partner with, is at all times in line with our purpose<br>and values and meets our moral and ethical standards.<br>• Shelter has robust due-diligence processes and leadership including trustees are<br>involved in decisions to approve or decline any financial relationship where there is<br>any perceived reputational risk.<br>• Within the framework set out in charity law, Shelter will refuse donations from<br>individuals or organisations whose activities are, or appear to be, detrimental to our<br>beneficiaries.|



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## Our Finances 

## **Financial review** 

Shelter’s financial performance in 2022/23 showed positive signs despite challenging economic conditions. Expenditure exceeded income, resulting in an operating deficit of £9.11m as the anticipated drawdown of Shelter’s reserve position took place in line with the current phase of Shelter’s strategic plan. Expenditure increased by £9.25m over the prior year, with income deceasing slightly, leading to a net increase in deficit of£10.78m compared to the surplus generated in 2021/22. 

Shelter’s investment portfolio decreased in value by £0.13m. Further analysis of this decrease can be found in the investments review below. Including this movement, Shelter generated a deficit of £9.24m in 2022/23. 

## **Income** 

Income totalled £73.67m in 2022/23. This is £1.53m (2%) lower than the prior year, due to a significant reduction in statutory grant and contract income, partly offset by strong growth in income from corporate relationships. 

Donations and legacies totalling £45.17m are consistent with 2021/22, down by £0.01m (0.0%) on the prior year. This is the net of a £1.57m (4%) increase in donations and a £1.58m (19%) decrease in legacies. 

The increase in donations is primarily due to continued strong growth in Shelter’s lottery and support from corporate donors. 

Legacies have decreased by £1.58m to £6.57m in 2022/23, following what had been a high performing year in 2021/22 due to the clearance of probate backlogs which had arisen as a result of the pandemic. 

There has been a £2.57m (15%) decline in income from charitable activities to £14.29m in 2022/23.   The primary reason for this decrease in income is due to Shelter’s previous contracts with MOJ ending in June 2021, although there was an interim extension for Greater 

Manchester for which we received £0.3m. As part of the new contracts which commenced in July 2021, we also received mobilisation funding of £0.4m for the 21/22 financial year. No income was received in 22/23 for either the extension or mobilisation.  The second reason is because of the Inspiring Change Manchester National Lottery funded activity ending after eight years in July 2022, which led to a decline in income of £0.9m between 21/22 and 22/23. Further information can be found in note 5 to the accounts. 

Shelter’s retail operation performed strongly, consolidating their impressive gains from 2021/22 following the return of shoppers to highstreets after the end of pandemic-related shop closures. Income of £12.87m was £0.31m (2%) higher than 2021/22. This growth was the product of both increased sale of donated goods, which increased by £1.09m (10%) on 2021/22 and growth in sale of new goods of £0.20m (55%), which offset the loss of the government’s coronavirus relief grants, which had accounted for £1.07m of income in 2021/22 and following the completion of the phased re-opening of stores Shelter ceased to benefit from in 2022/23. This increase was partly enabled by the continued development of Shelter’s e-commerce offer which continues to provide a growing outlet for the sale of both new and donated goods. 

## **Expenditure** 

Expenditure totalled £82.77m in 2022/23. This is £9.25m (13%) higher than the prior year with costs rising across expenditure lines due to inflationary impacts on staff costs and a planned reduction in reserve levels as Shelter invested in teams to deliver its strategic plan. 

Included in 2022/23 expenditure is £2.14m apportioned across charitable expenditure and support functions, relating to a historic VAT liability. This was identified during the year, following Shelter’s decision to commission an independent third party review of Shelter’s VAT processes and procedures, which showed the current rate of 

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recovery to be overly favourable to Shelter. Processes have been updated to reflect this in the 2023/24 financial year and a voluntary declaration made to HMRC for sums owed to them. 

The cost of raising donations and legacies increased by £3.69m (23%) in 2022/23. This is due to the inflationary effect on staff costs and the full resumption of face-to-face fundraising, which restarted in 21/22 following the end of pandemic-related social distancing measures and is now more in line with pre-pandemic activity. 

Retail costs are significantly higher than the prior year with an increase of £2.08m (17%) due to inflationary effects on both staff costs and premises. Given the considerable increase in retail expenditure, our retail operation has moved from a profit-making position in 2021/22 to a net loss of £1.11m in 2022/23, after the attribution of shared support costs. 

Expenditure on charitable activities increased by £3.48m (8%) to £48.97m in 2022/23. This is largely driven by the VAT liability which accounts for £1.69m of the change, with the balance of the increase attributable to inflationary effects on staff costs. 

At £18.42m, support costs are £4.25m (30%) higher than the prior year due to inflationary effects on staff costs and exacerbated by the VAT liability (£2.14m). 

## **Surplus** 

Under the requirements of the 2019 Statement of Recommended Practice (SORP), Shelter separates its funds into restricted and unrestricted. Full information on Shelter’s funds can be found in note 16 to the accounts. 

The £9.24m deficit generated in 2022/23 is comprised of a £0.064m restricted surplus, relating to grants or donations restricted to a particular purpose for which the funds were received in prior years and carried forward, and a £9.30m unrestricted deficit. The unrestricted deficit is the sum of a £0.74m decrease in funds designated for particular purposes by the Board and a £8.56m 

decrease in general funds, also known as reserves. 

The trading company (Shelter Trading Limited) made a distribution of £0.47m to the charity, broadly in line with the £0.38m distribution made in 2021/22. The trading company’s income comprises corporate sponsorship partnerships as well as the sale of purchased stock through retail, and commission earned by selling donated goods on behalf of the charity under the Retail Gift Aid Scheme. (The sale of donated stock is recognised in the charity.) 

## **Reserves and other funds** 

Shelter’s reserves, shown on the balance sheet as ‘general funds’, are its unrestricted funds not designated by the Board for any other purpose. They provide resilience in the event of financial shocks, such as an unexpected decline in income. 

The Reserves Policy determines the target level for reserves. This is based on a schedule of risks which is reviewed by the Board annually or in the event of a significant change to Shelter’s risk profile. In the event of a risk materialising, reserves may fall below the target level, but plans must be put in place to return them to the target level within the following three years. 

Shelter's current Reserves Policy target level is currently £8.26M. Reserves are £0.23m higher than this, at £8.49m. This balance is £8.56m lower than 2022, reflecting the planned draw down of reserves that has taken place in 2022/23 in the delivery of Shelter’s current strategic plan, and the realisation of some risks within Shelter’s risk-based reserve strategy, which did include sums provided for in relation to VAT risk. 

Shelter has three designated funds: the Revaluation Reserve, the Property and Fixed Asset Fund, and the Strategic Investment Fund. 

The Revaluation Reserve and Property and Fixed Asset Fund relate to Shelter’s fixed assets. Transfers totalling £0.74m have been made to reserves from these funds, to reflect the net decrease in 

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fixed asset values in 2022/23 as depreciation charges have exceeded additions. This decrease has primarily been driven by the depreciation of Shelter’s recently refurbished Old Street office and Customer Relationship Management software. 

The Strategic Investment Fund was created in 2018/19 to invest in activity to help Shelter achieve its ten-year strategy and is funded by unrestricted legacies greater than £0.75m. 

Further information on Shelter’s funds can be found in note 16 to the accounts. 

## **Investments** 

Shelter’s investment managers, Cazenove Capital, manage the investment fund within the parameters identified in the Investment Policy set by the Board. The Committee for Resources and Internal Systems has responsibility for reviewing the performance of the funds. 

Shelter is a social justice organisation which seeks to invest ethically. As such, Shelter’s Investment Policy generally excludes from the portfolio organisations whose primary business relates to alcohol, arms, gambling, high interest rate lending, housing and property development, oil, coal and gas, pornography and the sex industry, or tobacco. 

Shelter’s investments are held in Cazenove’s Responsible Multi-Asset Fund (RMAF), a pooled fund specifically created for the charitable sector, which enables these general exclusions to be made while also delivering a strong return. During 2022/23, investments have unfortunately decreased in value by £0.13m or 2%. 

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DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

## **Statement of Trustees’ responsibilities** 

The Trustees are responsible for preparing the Strategic Report, the Annual Report, and the financial statements in accordance with applicable law and regulations. 

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group for that period. 

In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- make judgements and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and 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 Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Financial statements are published on the Charity’s 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 Charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein. 

## **Disclosure of information to auditors** 

All of the current Trustees have taken all the steps that they ought to have taken to make themselves aware of any information needed by the charitable company's auditors for the purposes of their audit and to establish that the auditors are aware of that information. The Trustees are not aware of any relevant audit information of which the auditors are unaware. 

## **Auditor** 

BDO LLP were appointed as the charity’s auditors during the 2019/20 financial year and have expressed their willingness to continue in that capacity. 

The Trustees’ Annual Report, which includes the Strategic Report, has been approved by Trustees on 28[th] September 2022 and signed on their behalf by: 


## Helen Baker 

Chair of the Board of Trustees 

21 December 2023 Date: 

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# **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF SHELTER, THE NATIONAL CAMPAIGN FOR HOMELESS PEOPLE LIMITED** 

## **Opinion on the financial statements** 

In our opinion, the financial statements: 

- give a true and fair view of the state of the Group’s and of the Parent Charitable Company’s affairs as at 31 March 2023 and of the Group’s incoming resources and application of resources for the year then ended; 

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

- have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006, as amended in 2010. 

We have audited the financial statements of Shelter (“the Parent Charitable Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, the charity and group balance sheets, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

## **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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## _Independence_ 

We remain independent of the Group and the Parent Charitable Company in accordance with the ethical requirements 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. 

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## **Conclusions related to going concern** 

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

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

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

## **Other information** 

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The other information comprises: Trustees’ Annual Report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Other Companies Act 2006 reporting** 

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

- the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Strategic report and the Directors’ Report, which are included in the Trustees’ Report, have been prepared in accordance with applicable legal requirements. 

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustee’s report. 

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We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 requires us to report to you if, in our opinion: 

- proper and adequate accounting records have not been kept by the Parent Charitable Company, or returns adequate for our audit have not been received from branches not visited by us; or 

- the Parent Charitable Company financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of Directors’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of Trustees** 

As explained more fully in the Statement of Trustees’ responsibilities, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines 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 Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 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. 

_Extent to which the audit was capable of detecting irregularities, including fraud_ 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

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Based on our understanding of the Charity and the industry in which it operates, we identified that the principal laws and regulations that directly affect the financial statements to be Charities Acts, Companies Act 2006, UK GAAP, Charities SORP, fundraising regulations and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. 

In addition the Association is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: employment law, data protection and health and safety legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence if any. 

Audit procedures performed by the engagement team included: 

- discussions with management, including consideration of known or suspected instances of noncompliance with laws and regulations and fraud; 

- reading minutes of meeting of those charged with governance, and reviewing correspondence with HMRC; 

- reviewing on a sample basis income transactions recognised in the year to confirm existence and accuracy of the underlying transaction, in addition we have for all material income streams performed specific cut-off procedures to ensure income has been recognised in the correct period; 

- challenging assumptions made by management in their significant accounting estimates in particular in relation to the assumptions related to the legacy accrual and the dilapidations provision; and 

- in addressing the risk of fraud through management override of controls; testing the appropriateness of journal entries and other adjustments, in particular any journals posted to cash and material journal adjustments. 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. 

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: 

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

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## **Use of our report** 

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the Charitable Company’s trustees, as a body, in accordance with the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the Charitable Company’s members and 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 Charitable Company, the Charitable Company’s members as a body and the Charitable Company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. 


Heather Wheelhouse (Senior Statutory Auditor) 

For and on behalf of BDO LLP, Statutory Auditor 

London, UK 

## 22 December 2023 

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). 

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## **FINANCIAL STATEMENTS** 

## **Consolidated Statement of Financial Activities** 

## **For the year ended 31 March 2023 (incorporating income and expenditure accounts)** 

||**Notes**|**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|---|
|||**Funds**|**Funds**|**2023**|**2022**|
|||**£'000**|**£'000**|**£'000**|**£'000**|
|**Income from:**||||||
|Donations and legacies|2|40,208|4,958|45,166|45,180|
|**Charitable activities:**||||||
|Grants and contracts|5|4,024|6,210|10,234|14,016|
|Training and resources for housing professionals|5|1,013|1,094|2,107|2,153|
|Other|5|1,030|915|1,945|688|
|Retail operations|3|12,873|-|12,873|12,563|
|Investments|4|14|-|14|4|
|Other trading income||1,326|-|1,326|593|
|**Total income**||**60,488**|**13,177**|**73,665**|**75,197**|
|**Expenditure on:**||||||
|Raising donations and legacies|2|19,817|-|19,817|16,131|
|Retail operations||13,987|-|13,987|11,911|
|**Charitable activities:**||||||
|Housing advice and support:||||||
|Face-to-face advice||12,939|4,738|17,677|17,338|
|Intensive support||9,992|880|10,872|11,274|
|Telephone and online advice services||6,177|2,879|9,056|7,087|
|Training and resources for housing professionals||3,233|2,790|6,023|5,284|
|Campaigning||2,442|837|3,279|2,569|
|Research andpolicy||1,070|989|2,059|1,931|
|**Total expenditure on charitable activities**||**35,853**|**13,113**|**48,966**|**45,483**|
|**Total expenditure**|7|**69,657**|**13,113**|**82,770**|**73,525**|
|**Net (expenditure)/income before investment**<br>**(losses)/gains**||**(9,169)**|**64**|**(9,105)**|**1,672**|
|Net (losses)/gains on investments|12|(130)|-|(130)|526|
|**Net(expenditure)/income for theyear**|22|**(9,299)**|**64**|**(9,235)**|**2,198**|
|Reconciliation of funds:||||||
|Fund balances at the startof the year|22(a)|29,509|3,847|33,356|31,158|
|**Fund balances at the end of theyear**|16,18|**20,210**|**3,911**|**24,121**|**33,356**|



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## **Charity and Group Balance Sheets** 

## **As at 31 March 2023** 

|<br>**Notes**<br> <br>|**Group**<br>**Charity**|
|---|---|
||**2023**<br>**2022**<br>**2023**<br>**2022**<br>**£'000**<br>**£'000**<br>**£'000**<br>**£'000**|
|**Fixed assets**<br>Tangible fixed assets<br>11<br>Intangible fixed assets<br>11<br>Investments<br>12<br>Investments-cash deposits<br>12|9,838<br>9,735<br>9,838<br>9,735<br>1,878<br>2,722<br>1,878<br>2,722<br>5,918<br>6,048<br>5,998<br>6,128<br>560<br>559<br>560<br>559|
|**Total** **fixed assets**<br>**Current assets**<br>Stock<br>Debtors<br>13<br>Cash at bank|**18,194**<br>**19,064**<br>**18,274**<br>**19,144**<br> <br> <br> <br> <br>119<br>86<br>-<br>-<br>14,922<br>16,577<br>15,409<br>17,331<br>2,556<br>6,123<br>2,086<br>5,331|
|**Total current assets**<br> <br>**Current liabilities**<br>Creditors: amounts falling due within one year<br>14|**17,597**<br>**22,786**<br>**17,495**<br>**22,662**<br>8,830<br>5,198<br>8,824<br>5,169|
|**Net current assets**|**8,767**<br>**17,588**<br>**8,671**<br>**17,493**|
|**Total assets less current liabilities**<br> <br>Provisions for liabilities and charges<br>15|**26,961**<br>**36,652**<br>**26,945**<br>**36,637**<br>2,840<br>3,296<br>2,840<br>3,296|
|**Net assets**<br>**Accumulated funds:**<br>**Unrestricted income funds:**<br>General funds<br>16<br>Designated funds<br>16<br>Restricted income funds<br>17<br>Permanent endowment fund<br>16|**24,121**<br>**33,356**<br>**24,105**<br>**33,341**<br> <br> <br> <br>8,494<br>17,052<br>8,478<br>17,469<br>11,716<br>12,457<br>11,716<br>12,025<br>3,872<br>3,808<br>3,872<br>3,808<br>39<br>39<br>39<br>39|
|**Total charity funds**|**24,121**<br>**33,356**<br>**24,105**<br>**33,341**|



The net movement in funds for the year for the charity only was -£9,107,000 (2022: £1,672,000), not including gains/losses on investments. The charity only income was £72,127,000 (2022: £74,612,000) less expenditure of £81,234,000 (2022: £72,940,000). 

The financial statements were approved by the Board of Trustees and authorised for issue on 6[th] December 2023. They were signed on its behalf by: 


## **Helen Baker** 

## **Chair of the Board of Trustees** 

Shelter company registration number 1038133 

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## **Consolidated Cash Flow Statement** 

## **Year ended 31 March 2023** 

||**Notes**|**2023**|**2022**|
|---|---|---|---|
|||**£'000**|**£'000**|
|**Cash flows from operating activities**||||
|Net (expenditure)/income for the year||(9,235)|2,198|
|Adjustments for:||||
|Depreciation charges|11|2,297|1,330|
|Losses/(gains) on investments|12|130|(526)|
|Income from investments||(14)|(4)|
|Increase in stocks||(33)|(15)|
|Decrease/(increase) in debtors||1,655|(6,956)|
|Increase/(decrease) in creditors||3,632|(1,719)|
|Increase/(decrease) in provisions|15|(456)|(197)|
|**Net cash out flow from operating activities**||**(2,024)**|**(5,889)**|
|**Cash flows from investing activities**||||
|Income from investments||14|4|
|Purchase of fixed assets|11|(1,556)|(2,752)|
|Purchase of investments|12|-|-|
|Sale of investments|12|-|400|
|(Increase)/decrease in investment cash|12|(1)|1,011|
|**Net cash out flow from investing activities**||**(1,543)**|**(1,337)**|
|**Change in cash in the year**||**(3,569)**|**(7,226)**|
|Cash and cash equivalents at the beginning of the year||6,123|13,349|
|**Cash at the end of the year**||**2,556**|**6,123**|
|**Net funds reconciliation**||||
||**1 April 2022**|**Cash flows**|**31 March 2023**|
||**£'000**|**£'000**|**£'000**|
|Cash at bank and in hand|6,123|(3,569)|2,556|
|**Net cash**|**6,123**|**(3,569)**|**2,556**|



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## **Notes to the financial statements** 

## 1. **Accounting policies** 

## a) **Basis of accounting** 

Shelter is a public benefit entity as defined under Financial Reporting Standard 102 (FRS102). The accounts have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102 2018), and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS102. 

For freehold property, Shelter has taken the option afforded by FRS102 to value at deemed cost. See (g) below for further details. Listed investments are held at fair value. All other assets have been valued at historical cost. 

## b) **Going concern** 

Shelter's financial statements have been prepared on the going concern basis. An organisation is a going concern if it is expected to continue operations for the next twelve months. Shelter's trustees have assessed Shelter's ability to continue as a going concern for twelve months after the signing of the 2022/23 accounts, i.e., until December 2024. 

Shelter's income, expenditure and cashflow have been projected up to December 2024, considering the adverse economic conditions affecting Shelter and its donors. Income has been budgeted with economic conditions in mind and budget targets are considered to be realistic. Projections for 2024/25 show a balanced outlook, with cash and reserves closing 24/25 above policy levels. 

Sensitivity analysis has been carried out to project the impact on cashflow of potential risks, including underperformance against budget of income targets, inflationary increases in the cost of energy and fuel, and inflationary effects on staff salaries. Inflationary increases are budgeted that Shelter consider to be realistic and will be made subject to the rate of inflation and affordability tests. Whilst global supply challenges have resulted in cost increases to energy and fuel, this is not a major concern for Shelter because these costs are only 1% of our total expenditure. 

After considering the current level of reserves and cash, the forecast to December 2024 and related sensitivities, and the mitigation actions available to the business (including obtaining external finance secured on freehold properties, if necessary), it is the opinion of the Trustees that the Group has adequate financial resources to continue its activities for the foreseeable future. Accordingly, these financial statements have been prepared using the going concern basis of preparation and a material uncertainty does not exist. 

## c) **Group accounts** 

Group accounts have been prepared for Shelter, The National Campaign for Homeless People Limited, and its wholly owned subsidiary company, Shelter Trading Limited, in accordance with the requirements of FRS102.  The accounts have been consolidated on a line by line basis to include the results of Shelter Trading Limited. The results of Shelter Trading Limited are shown in note 20. In accordance with section 408 of the Companies Act 2006, no individual statement of financial activities has been prepared for the parent company, Shelter, The National Campaign for Homeless People Limited. 

## d) **Income** 

Income is included in the consolidated statement of financial activities when the charity is entitled to the income, it is probable the income will be received, and the amount can be quantified with reasonable accuracy. If all three criteria are met in advance of cash being received, income is accrued. Accrued income sits within debtors (see note 13). If any of the three criteria have not been met when cash is received, income is deferred. Deferred income sits within creditors (see note 14). 

The following specific policies apply to categories of income: 

- (1) The full value of a legacy is recognised as income when probate has been granted and Shelter is satisfied the amount receivable can be reliably measured. 

- (2) Grant income is recognised when Shelter has satisfied each of the performance conditions set out by the donor, or when achievement of conditions is within our control, and it is reasonable to assume they will be achieved. 

- (3) Contract income is recognised to the extent that goods/services have been delivered as set out in the contract. 

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## e) **Expenditure** 

Expenditure is accounted for on an accruals basis, meaning that it is recognised when goods or services are received. The statement of financial activities shows the costs of raising donations and legacies, retail operations and charitable activities. Each of these categories includes a proportion of support costs, comprising finance, IT, HR, facilities, in-house design and creative, and other corporate costs. These have been allocated to each category on the basis of full-time equivalent staff numbers, because that is the main driver of costs in the charity (see note 7). 

## f) **Donated services and gifts in kind** 

Donated services and gifts in kind are included in the statement of financial activities where their value is ascertainable and material. The value of the contribution to Shelter is based on either market value or the amount Shelter would have paid for equivalent goods or services. Income is included under donations and legacies. An equal amount of expenditure is included under the relevant category, as determined by the nature of the goods or services. The net impact on the net income or expenditure for the year is nil. Volunteers' time has not been valued and is not included in the accounts. 

## g) **Tangible assets and depreciation** 

Assets costing more than £1,000 which are intended to be in use for more than twelve months are capitalised as fixed assets. Other than freehold property, all categories of fixed assets are held on the balance sheet at historic cost less accumulated depreciation. Freehold property is held at market value as at 31 March 2014 less accumulated depreciation on the buildings. On transition to FRS102, the market value is deemed as cost at 1 April 2014. 

Depreciation allocates the cost of a fixed asset over its useful life. The cost is recognised under the relevant category of cost in the statement of financial activities, depending on how the asset is used. At Shelter, depreciation is charged on a straight-line basis, meaning that the charge remains the same throughout the life of an asset. The useful lives of Shelter's assets are deemed to be as follows: 

|Freehold buildings|50 years|
|---|---|
|Short-leasehold buildings|In line with the lease term|
|Freehold improvements|10 years|
|Furniture and fittings|4 years|
|Computer and office equipment|3 years|
|Vehicles|3 years|



Freehold land on which buildings are constructed is not depreciated. 

Freehold buildings may contain components with useful lives below 50 years. Where the impact is material, these components are held separately from the main building and are depreciated over their useful lives, which are determined on a case-by-case basis. 

If an event occurs which indicates a material reduction in a fixed asset's carrying value, an impairment review will be carried out. Any impairment charge is recognised in the statement of financial activities. 

During the 2022/23 financial year intangible fixed assets relating to software costs were separated from the tangible fixed assets in which they had previously been reported. This can be seen in note 11a and 11b with prior year balances restated accordingly. This prior year adjustment has had no impact on the reported net income for the year ended 31 March 2022 nor on the reported net assets at either 31 March 2022 or 31 March 2021. 

## h) **Dilapidations** 

All dilapidation costs are provided for. Leases on Shelter's shops and offices usually include a contractual obligation for Shelter to return the property to its original condition at the end of the lease. The costs of doing this are estimated by a chartered surveyor at the commencement of the lease. Shelter recognises a provision and corresponding cost at that point. The provision is reviewed throughout the lease term. Dilapidation costs are payable on lease termination. 

## i) **Investments** 

Listed investments, such as shares and bonds, are held at market value. Any realised or unrealised gains resulting from movements in investments and changes in valuations are reflected in the statement of financial activities and are accounted for in the relevant fund (see (k) below). Other investments are held at cost less impairment, if applicable. These include investments in unlisted shares, and the investment in subsidiary company Shelter Trading Limited on the balance sheet of Shelter, The National Campaign for Homeless People Limited. 

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## j) **Stock** 

Stock consists of purchased goods held for resale by Shelter Trading Limited. Donated stock held for resale is not recognised as stock as it is not practicable to value it reliably. Stock is stated at the lower of cost or net realisable value. The income from sale of stock is recognised at point of sale. 

## k) **Fund accounting** 

Due to the constraints of law and donor-imposed restrictions, the charity segregates its funds between those that are restricted and those that are unrestricted. General funds represent the accumulated surplus on unrestricted income and expenditure and are available for use at the discretion of the Board in pursuing the general charitable objectives of the charity (see report of the trustees). 

Designated funds are funds that have been set aside by the Board for a specific purpose. An analysis of designated funds is provided in note 16 to the financial statements. 

Included in designated funds is a freehold property and fixed asset fund that represents the net book value of Shelter's freehold property and fixed assets.  This fund has been separated from the general fund in recognition of the fact that the freehold property and fixed assets are used in Shelter's day-to-day work, and the fund value would not be easily realisable if needed to meet future liabilities. 

Restricted funds represent income received where the donor or the nature of the appeal generating the income has imposed restrictions as to how the monies shall be used. Further detail on restricted funds is provided in note 17. 

The endowment fund comprises a capital sum donated with the restriction that the money is invested and only the income arising is available for expenditure. 

## l) **Operating leases** 

Rental expenditure applicable to operating leases is credited or charged to the consolidated statement of financial activities on a straight-line basis, in the period to which the cost relates. 

## m) **Pension costs** 

Contributions to the company's defined contribution pension scheme are charged to the consolidated statement of financial activities in the year in which they are payable to the scheme. 

## n) **Debtors** 

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 

## o) **Creditors and provisions** 

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

## p) **Financial instruments** 

With the exception of the listed investments described above, the charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

## q) **Significant judgements and estimates** 

Key judgements that Shelter has made which have a significant impact on the accounts include legacy income (see (d)(1) above and note 2 below) and dilapidations provisions (see note 15). The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. 

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## **Income and expenditure** 

## 2. **Donations and legacies: income and expenditure** 

||**2023**|**2023**|**2023**|**2022**|
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Total**|**Total**|
||**£'000**|**£'000**|**£'000**|**£'000**|
|**Income from donations and legacies:**|||||
|Individuals|29,474|818|30,292|30,425|
|Donated services|167|112|279|229|
|Charitable foundations|1,276|1,524|2,800|2,359|
|Corporate donors|1,201|2,254|3,455|3,053|
|Lottery|1,767|-|1,767|960|
|Legacies|6,323|250|6,573|8,154|
|**Total**|**40,208**|**4,958**|**45,166**|**45,180**|
|**Expenditure on raising donations and legacies:**|||||
|Direct staff costs|7,678|-|7,678|7,005|
|Direct non-staff costs|9,909|-|9,909|7,391|
|Allocated support costs|2,332|-|2,332|1,735|
|**Total**|**19,817**|**-**|**19,817**|**16,131**|



Shelter has been notified of legacies with an estimated value of £6.30m (2022: £4.33m) which have not been included in income for the year ended 31 March 2023, because either probate has not been received or Shelter is not satisfied that the amount receivable can be reliably measured. 

Unrestricted non-staff costs of raising donations and legacies are primarily the costs of developing and distributing fundraising materials, and allocated support costs (see note 7). 

In 2022 Lottery income was included within income received from individuals. 

## 3. **Retail operations: income and expenditure** 

|3. **Retail operations: income and expenditure**|||||
|---|---|---|---|---|
||**2023**|**2023**|**2023**|**2022**|
||**Unrestricted**|**Restricted**|**Total**|**Total**|
||**£'000**|**£'000**|**£'000**|**£'000**|
|**Income from retail operations:**|||||
|Donated goods|11,871|-|11,871|10,784|
|Purchased goods|577|-|577|373|
|Retail, Hospitality and Leisure Grants|-|-|-|1,042|
|HMRC Job Retention Scheme (furlough)|-|-|-|27|
|Other|425|-|425|337|
|**Total**<br>|**12,873**|**-**|**12,873**|**12,563**|
|**Expenditure on retail operations:**|||||
|Direct staff costs|5,187|-|5,187|4,448|
|Direct non-staff costs|5,925|-|5,925|4,963|
|Allocated support costs|2,875|-|2,875|2,536|
|**Total**<br>|**13,987**|**-**|**13,987**|**11,911**|
|**Net income/(expenditure) available for charitable application**|**(1,114)**|**-**|**(1,114)**|**652**|



A number of Shelter's shops were eligible for Retail, Hospitality and Leisure Grants (England), Local Restriction Support Grants (England) and Strategic Framework Business Fund (Scotland) from 2019/20 to 2021/22 as part of the government's response to the COVID-19 pandemic and resultant lockdown measures. Shelter ceased to benefit from these grants in 2021/22 as the phased re-opening of shops was completed, and the retail chain returned to full operations as before the pandemic. 

The retail chain made a gross contribution available for charitable application of £1.76m in 2022/23 (2022: £3.00m). After the application of support cost allocation (see note 7) the chain made a net loss of £1.11m. 

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Whilst income remained strong, increasing £0.31m on 2022 income levels, the decrease in contribution was driven by the result of significant increases in direct costs which totalled £11.11m (2022: £9.56m, see notes 7 and 21) and were driven up by the inflationary impact on staff wages and operating costs. 

Other retail income primarily relates to stock ineligible for resale which is instead sold to recyclers of used materials. 

## 4. **Income from investments** 

|4. **Income from investments**|||
|---|---|---|
||**2023**|**2022**|
||**£'000**|**£'000**|
|Interest on cash at bank|11|2|
|Dividends from listed securities|3|2|
|**Total**|**14**|**4**|



## 5. **Income from charitable activities** 

|5. **Income from charitable activities**|||||
|---|---|---|---|---|
||**2023**|**2023**|**2023**|**2022**|
||**Unrestricted**|**Restricted**|**Total**|**Total**|
||**£'000**|**£'000**|**£'000**|**£'000**|
|**Central government grants and contracts:**|||||
|Scottish government grants|40|332|372|664|
|Ministry of Justice contracts|602|-|602|2,568|
|Ministry of Housing, Communities and Local Government grants and|||||
|contracts|-|1,714|1,714|1,994|
|HMRC Job Retention Scheme (furlough)|-|-|-|16|
|**Other public body grants and contracts:**|||||
|Legal Aid Agency contracts|170|1,251|1,421|1,255|
|Local authority grants and contracts|2,504|1,423|3,927|4,355|
|National Lottery grants|-|157|157|1,565|
|Other agencies grants and contracts|708|1,333|2,041|1,599|
|**Total statutory grant and contract income**|**4,024**|**6,210**|**10,234**|**14,016**|
|Income from training and resources for housing professionals|1,013|1,094|2,107|2,153|
|Other income|1,030|915|1,945|688|
|**Total income from charitable activities**|**6,067**|**8,219**|**14,286**|**16,587**|



Grant and contract income contributes towards housing advice and support, and training and resources for housing professionals. Other income is primarily comprised of grants from organisations which do not fall into any of the categories above, for example grant-giving charities. Other income does not include trusts and foundations, as income from these bodies is included under donations and legacies (see note 2). 

In 2023 Shelter ceased to benefit from income received under government support schemes in response to the pandemic, which previously comprised of retail grants (see note 3), and the HMRC Job Retention Scheme. 

In addition to the income shown in this note, Shelter also received £0.40m on behalf of partner organisations, to whom these funds were passed. This is not shown as income and expenditure as Shelter acted as an agent in regard to these funds. As at 31st March 2023 Shelter was owed £84k by councils in relation to these funds. 

In 2022 Other Income included £0.59m trading income now shown in the Statement of Financial Activities as Other Trading Income. 

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## 6. **Contracts and grants from local authorities** 

Listed below are grants from and contracts with local authorities in excess of £2,000 recognised in the year ended 31 March 2022. 

The list is prepared in compliance with section 37 of the Local Government and Housing Act 1989. 

|**Funder**|**Purpose of funding**|**Income**|**Expenditure**|
|---|---|---|---|
|||**2023**|**2023**|
|||**£’000**|**£’000**|
|**District, borough and county councils in England and Wales:**||||
|Birmingham City Council|Provides a single point of access for single people|88|106|
||and childless couples who are homeless or at risk|||
||of homelessness.|||
|Birmingham City Council|Support for rough sleeper clients who have not|25|13|
||previously engaged with services.|||
|Blackburn with Darwen Borough Council|To enable the secure sharing of service user data|30|-|
||to assist with the driving up standards of|||
||accommodation and support provided in|||
||supported accommodation.|||
|Blackburn with Darwen Borough Council|Provides welfare and debt information and advice|150|167|
||services within the Borough of Blackburn with|||
||Darwen.|||
|Blackburn with Darwen Borough Council|Supported accommodation pilot to create an|-|13|
||informed view of the provision of Support within|||
||the borough, taking account of the different|||
||standards currently provided and the issues facing|||
||residents.|||
|Borough Council of Kings Lynn & West Norfolk|Provide a free, impartial confidential advice to the|65|63|
||residents of the district of King's Lynn & West|||
||Norfolk regardless of race, religion, gender, sexual|||
||orientation, age, marital status or disability.|||
|Borough Council of Kings Lynn & West Norfolk|To support ex-offenders to access the private|30|43|
||rental sector with the ambition of supporting them|||
||into sustainable accommodation.|||
|Dorset Council|Specific Local Authority funding for hardship|-|-|
||payments|||
|Dorset Council|Provide a Programme Coordinator for Dorset|64|56|
||Rough Sleeping Drug and Alcohol Treatment|||
||Programme on behalf of Dorset Council in order for|||
||the council to satisfy a number of health service|||
||obligations|||
|Dorset Council|This contract is to provide intensive floating|53|58|
||support to 8 people who have been rough sleepers|||
||in Dorset Council area.|||
|Dorset Council|To provide 10 properties in the Dorset Council area|79|88|
||for rough sleepers with very high/complex needs|||
||whose needs are best met though the provision of|||
||very intensive wraparound support.|||
|Dorset Council|Community makeover project with B&Q, match|3|3|
||funded by Dorset Council.|||
|Dorset Council|Provide Family Support Packages made up of|110|107|
||specialist housing, debt, money management and|||
||welfare benefits advice and support to ensure|||
||families are able to sustain their homes.|||
|Liverpool City Council|To provide specialist housing advice and support|143|13|
||to families residing in Liverpool to secure and|||
||successfully maintain suitable and affordable|||
||accommodation for their family, preventing|||
||homelessness.|||



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|London Borough Of Hackney|Intensive support of families at risk of|64|66|
|---|---|---|---|
||homelessness funding for one advice, support &|||
||guidance worker to provide specialist level|||
||housing & homelessness help to residents in|||
||Hackney via face to face, telephone and online|||
||support.|||
|London Borough Of Hackney|One-off award to recruit a Qualified Advisor to|24|24|
||reduce Shelter's backlog whist increasing|||
||availability of social welfare advice for residents|||
||seeking support from the Council's health|||
||partners.|||
|London Councils|Providing specialist prevention support for adults|469|501|
||at risk of experiencing, homelessness in|||
||partnership with Thames Reach, Stonewall|||
||Housing, Praxis and St Mungo's.|||
|London Councils|As part of the London Youth Gateway, Shelter|20|24|
||provides specialist advice, support & guidance on|||
||any housing or homelessness issue to young|||
||people between 16-25 years old.|||
|London Councils|As part of the London Youth Gateway, Shelter|34|43|
||provides specialist advice, support & guidance on|||
||any housing or homelessness issue to young|||
||people between 16-25 years old through a|||
||dedicated London advice line.|||
|London Councils|To provide support to voluntary homelessness|36|32|
||service organisations and ensure they are aware of|||
||the policies affecting their clients.|||
|Manchester City Council|To deliver an innovative support programme for|133|203|
||people with complex needs in Manchester who|||
||are/at risk of homelessness.|||
|Manchester City Council|To provide a traineeship programme which|225|129|
||provides supported employment opportunities for|||
||people who have a lived experience of multiple|||
||disadvantages.|||
|Norwich City Council|Debt prevented and/ or reduced and improved|33|25|
||financial capability|||
|Norwich City Council|Specific Local Authority funding for Shelter|35|42|
||employee's salary costs|||
|Public Health England funding via Blackburn Council|To improve the mental health of the local|-|47|
||community by focusing on systemic housing,|||
||welfare and benefits issues, all of which impact|||
||negatively on mental health and wellbeing.|||
|Public Health England funding via Sheffield City|To improve support and outcomes for people|92|73|
|Council|experiencing rough sleeping who have drug and|||
||alcohol dependence needs.|||
|Sheffield City Council|Provides both practical assistance and support to|897|1,014|
||help people who are at risk of losing their home,|||
||and those who have been homeless to recover|||
||quickly, settle into their accommodation and|||
||sustain a positive lifestyle in the community.|||
|Sheffield City Council|A specialist non-clinical support service for people|320|353|
||with drug and alcohol misuse in a vulnerable|||
||housing situation.|||
|Sheffield City Council|To provide specialist housing advice for residents|64|64|
||of safe accommodation, to work alongside the|||
||providers of refuge and safe zones|||
||accommodation, and to ensure that people receive|||
||resettlement support to safely move on from safe|||
||accommodation to home.|||



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|Sunderland City Council|To contribute to preventing homelessness in|50|54|
|---|---|---|---|
||Sunderland through the delivery of specialist|||
||housing advice within Sunderland, hosted by|||
||Community Housing.|||
|Westminster Borough Council|Provision of frontline housing advice,|450|357|
||homelessness prevention and support services.|||
|**Total**||**3,786**|**3,781**|
|**Local authorities in Scotland:**||||
|Aberdeen Council|Housing advice for households at risk of|44|39|
||homelessness through legal proceedings.|||
|Glasgow City Council|To establish a locally responsive model for|72|73|
||homeless individuals with multiple and complex|||
||needs in Glasgow.|||
|North Lanarkshire Council|Independent advocacy in relation to housing|24|1|
||issues for eligible persons in North Lanarkshire|||
|**Total**||**140**|**113**|
|||||
|**De minimis contracts and grants:**||||
|Other grants and contracts: income <£2k||1|1|
|**Total**||**1**|**1**|



Local authority grants and contracts for the prior year are shown in note 21. 

## **London Councils** 

|**London Councils Grant Summary**|**Grant awarded**<br>**£**|**Grant spent**<br>**£**|
|---|---|---|
|Lead Partner-Shelter|469,284|500,791|
|Delivery partners|||
|Thames Reach|235,693|255,232|
|St Mungo's|100,604|102,786|
|Stonewall Housing|117,932|119,015|
|Delivery partner sub-total|454,229|477,033|
||||
|**Grand total**|**923,513**|**977,824**|
||||
|**Expenditure on:**|**Grant awarded**<br>**£**|**Grant spent**<br>**£**|
|Staffing|714,057|760,725|
|Running cost*|77,063|85,546|
|Premises cost|36,414|26,866|
|Central overheads|95,979|104,687|
|**Total**|**923,513**|**977,824**|



*Running cost is comprised of travel & subsistence, IT & communication, translation, direct office cost, marketing cost, training cost, recruitment cost and client related cost. 

Shelter received £923,513 from London Councils during financial year 2022/23. 

Shelter works in partnership with other organisations to deliver this project. As lead partner, Shelter receives all income from London Councils and distributes it to the other partners. 

Shelter has paid a total of £454,229 to partner organisations in 2022/23, as shown in the table above. 

The entirety of the grant, including the portion retained by Shelter and that distributed to partners, has been spent in accordance with the grant agreement. 

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The total overspend on this project is £54,311. Thames Reach overspent by £19,539. Shelter overspent by £31,507, Stonewall Housing by £1,083 and Praxis by £2,182. Shelter had a B/F balance of £8,005 from FY 21/22. 

## 7. **Direct and apportioned costs** 

## **(a) Breakdown of direct costs and apportioned support costs by type** 

||**Direct costs**|**Apportioned**<br>**support costs**|**Total costs**<br>**2023**|**Total costs**<br>**2022**|
|---|---|---|---|---|
||**£'000**|**£'000**|**£'000**|**£'000**|
|**Expenditure on:**|||||
|Raising donations and legacies|17,485|2,332|19,817|16,131|
|Retail operations|11,112|2,875|13,987|11,911|
|**Charitable activities:**|||||
|Housing advice and support:|||||
|Face-to-face advice|12,622|5,055|17,677|17,338|
|Intensive support|8,076|2,796|10,872|11,274|
|Telephone and online advice services|6,323|2,733|9,056|7,087|
|Training and resources for housing professionals|4,619|1,404|6,023|5,284|
|Campaigning|2,527|752|3,279|2,569|
|Researchand policy|1,582|477|2,059|1,931|
|**Total expenditure on charitable activities**|**35,749**|**13,217**|**48,966**|**45,483**|
|**Total direct and apportioned costs**|**64,346**|**18,424**|**82,770**|**73,525**|



Direct costs are directly attributable to the relevant department. Indirect support costs are apportioned on the basis of full-time equivalent staff numbers. Support costs are further broken down below. 

The method for allocating support costs has been updated to better reflect the operational resources required to run the retail chain, as also referenced in note 3. 

Apportioned support costs include expenditure of £2.14m relating to a historic VAT liability identified during the year arising from an externally commissioned review of Shelter’s VAT compliance. This expenditure has been apportioned across charitable expenditure in the same manner as support fees, i.e., full-time equivalent staff numbers. 

## **(b) Breakdown of apportioned support costs** 

|**(b) Breakdown of apportioned support costs**|||
|---|---|---|
||**2023**|**2022**|
||**£'000**|**£'000**|
|Human resources|3,649|3,766|
|Finance|1,757|1,720|
|Information technology|6,777|5,585|
|Facilities|2,153|1,622|
|In-house design and creative|930|1,178|
|Other corporate costs|1,022|208|
|VAT|2,136|-|
|**Total apportioned support costs**<br>|<br>**18,424**|**14,179**|



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## 8. **Governance costs** 

||**2023**|**2022**|
|---|---|---|
||**£'000**|**£'000**|
|Fees payable to the external auditors for the audit of the group annual accounts|89|60|
|Fees payable to the external auditors for non-audit services|-|9|
|Internal audit|26|73|
|Trustee expenses, insurance and recruitment|24|13|
|Board and committee support costs*|57|52|
|**Total**|**196**|**207**|



* These costs reflect a proportion of the pay costs of the CEO, directors and support staff who support the Board and governing committees. 

Governance costs are the costs of ensuring that Shelter is well managed and run. These include any costs relating to the Board of Trustees, who share ultimate responsibility for governing Shelter; and the cost of internal and external audit, which test Shelter's controls, processes and financial statements to help ensure good governance is in place. 

## 9. **Staff costs** 

## **Disclosure note on directors’ costs** 

The key management personnel of the charity comprise trustees and members of the Executive Leadership Team. Trustees are not remunerated. The total cost of employing the charity's Executive Leadership Team during the year, including employer's social security and pension contributions, was £1,002,116 (2022: £916,861). There are adequate systems in place to manage expenses and these do not form part of directors' remuneration. 

The CEO's annual salary was £141,868 (2022: £135,016). Shelter's median salary was £29,012 (2022: £27,084), which represents a ratio against the highest salary of 4.89:1 (2022: 4.99:1). Shelter believes in and is committed to equal opportunities and offering fair pay and conditions. Shelter recognises that the attainment of equitable pay requires a pay system that is transparent and based on objective criteria. Shelter aims to pay staff a salary that is at the market median position of the relevant job market and benchmarks its salaries against service providers providing similar front-line services and with charities of comparable size and with comparable roles to ours. 

|**Staff costs**|**2023**|**2022**|
|---|---|---|
||**£’000**|**£’000**|
|Wages and salaries|41,418|38,724|
|Social security costs|4,271|3,792|
|Pension costs|3,148|3,025|
|Other staff-related costs|1,944|1,808|
|**Total**|**50,781**|**47,349**|



Overall staff costs increased due to inflationary effects on staff salaries and Shelter's pay award in response to the cost-of-living crisis. Redundancy and termination costs during the year were £420,540 (2022: £407,691). 

|**Average staff headcount**|**2023**|**2022**|
|---|---|---|
||<br>**No.**|**No.**|
|Raising donations and legacies|123|128|
|Retail operations|174|196|
|Housing advice and support:|||
|Face-to-face advice|266|300|
|Intensive support|150|194|
|Telephone and online advice services|141|138|
|Training and resources for housing professionals|75|83|
|Campaigning|37|38|
|Research and policy|25|27|
|Support functions|176|166|
|**Total**|<br>**1,167 **|**1,270 **|



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The number of employees who received emoluments (excluding pensions) in the following ranges were: 

||**2023**|**2022**|
|---|---|---|
||**No.**|**No.**|
|£60,001 to £70,000|16|11|
|£70,001 to £80,000|10|7|
|£80,001 to £90,000|2|1|
|£90,001 to £100,000|-|2|
|£101,001 to £110,000|2|2|
|£110,001 to £120,000|4|1|
|£120,001 to £130,000|-|-|
|£130,001 to £140,000|-|1|
|£140,001 to £150,000|1|1|



## **Volunteer contribution** 

Shelter has been supported by volunteers over the year in our shops, in our offices and at events. We would not have been able to achieve what we have done without their tremendous efforts. 

||**2023**|**2022**|
|---|---|---|
||**No.**|**No.**|
|Groupnumber of volunteers|2,459|2,617|



## 10. **Leasing commitments – group and charity** 

As at 31 March 2022, the group and charity's total future minimum lease payments under non-cancellable operating leases fall due for payment as follows: 

|**Operating leases which expire:**<br>within one year<br>between one and five years<br>after more than fiveyears|**2023**<br>**2022**|
|---|---|
||**Land and**<br>**buildings**<br>**Other**<br>**Land and**<br>**buildings**<br>**Other**<br>**£’000**<br>**£’000**<br>**£’000**<br>**£’000**<br>2,914<br>134<br>2,894<br>111<br>5,826<br>120<br>6,203<br>120<br>238<br> -<br>200<br>-|
|**Total lease commitments**|**8,978 **<br>**254 **<br>**9,297**<br>**231**|
|The net income for the year is stated after charging:||
|**Rental costs relating to operating leases**<br>**3,346**<br>**177**<br>**2,592**<br>**47**||



72 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

## **Assets** 

## 11. **Fixed assets – group and charity** 

## a. **Tangible fixed assets** 

||**Assets under**<br>**construction**|**Freehold**<br>**buildings and**<br>**improvements**|**Short**<br>**leasehold**<br>**buildings**|<br> <br>**Furniture and**<br>**fittings**|**Computer**<br>**and office**<br>**equipment**|**Total**|
|---|---|---|---|---|---|---|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Cost or valuation**|||||||
|At 1 April 2022|1,314|7,000|341|<br>6,903|6,724|**22,282**|
|Additions|171|-|<br>48|<br>967|345|**1,531**|
|Transfers|(1,483)|-|<br>-|<br>1,483|-|**-**|
|Disposals|(2)|-|<br>(18)|(262)|(3)|**(285)**|
|**At 31 March 2023**|**-**|**7,000**|**371**|**9,091**|**7,066**|**23,527**|
|**Depreciation**|||||||
|At 1 April 2022|-|<br>(805)|(321)|<br>(5,748)|(5,673)|**(12,547)**|
|Charge for the year|-|<br>(93)|(21)|<br>(902)|(410)|**(1,426)**|
|Transfers|-|<br>-|-|<br>-|-|**-**|
|Disposals|-|<br>-|<br>17|<br>262|3|**282**|
|**At 31 March 2023**|**-**|**(898)**|**(325)**|**(6,388)**|**(6,080)**|**(13,691)**|
|**Net book values**|||||||
|**At 31 March 2023**|**-**|**6,102**|**46**|**2,703**|**986**|**9,837**|
|At 1 April 2022|1,314|6,195|20|<br>1,155|1,051|**9,735**|



Assets under construction are comprised of office refurbishments currently underway and significant IT projects still in development. 

Freehold buildings and improvements are comprised of Shelter's support office on Old Street in London. The cost of £7,000,000 is the market value as at 31 March 2014, which was taken to be deemed cost on transition to FRS102. This valuation includes £2,333,333 of land which is not depreciated. 

## b. **Intangible fixed assets** 

||**Computer software**|
|---|---|
||**£’000**|
|**Cost or valuation**||
|At 1 April 2022|3,146|
|Additions|25|
|**At 31 March 2023**|**3,171**|
|**Depreciation**||
|At 1 April 2022|(424)|
|Chargefor the year|(869)|
|**At 31 March 2023**|**(1,293)**|
|**Net book values**||
|**At 31 March 2023**|**1,878**|
|At 1 April 2022|2,722|



The cost and depreciation figures as at 1 April 2022 for computer and office equipment have been restated as software is now separately disclosed as an intangible fixed asset within note 11b.  See note 1g for further details. 

73 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

## 12. **Investments – group and charity** 

|12. **Investments – group and charity**|||||
|---|---|---|---|---|
||**Group**|**Group**|**Charity**|**Charity**|
||**2023**|**2022**|**2023**|**2022**|
||**Total**|**Total**|**Total**|**Total**|
||**Inv.**|**Inv.**|**Inv.**|**Inv.**|
||**£’000**|**£’000**|**£’000**|**£’000**|
|**Listed investments:**|||||
|Investments at market value at 1 April 2022|6,048|5,922|6,048|5,922|
|Additions|-|-|-|-|
|Disposals|-|(400)|-|(400)|
|Net(loss)/gain for theyear|(130)|526|(130)|526|
|**Listed investments**|**5,918**|**6,048**|**5,918**|**6,048**|
|Cash investments|560|559|560|559|
|Investment insubsidiary|-|-|80|80|
|**Total investments at 31 March 2023**|**6,478**|**6,607**|**6,558**|**6,687**|
|**Historical cost: Listed investments as at 31 March 2023**|**5,362**|**5,362**|**5,442**|**5,442**|
||||||
|**Common strategy investment funds:**|||||
|JP Morgan Liquidity Fund|47|47|47|47|
|SUTL Charity Responsible Multi-Asset Fund|5,871|6,001|5,871|6,001|
|**Cash Investments:**|||||
|Schroders Cash Management|560|559|560|559|
|**Total**|**6,478**|**6,607**|**6,478**|**6,607**|



## 13. **Debtors** 

|13. **Debtors**||
|---|---|
||**Group**<br>**Charity**|
||**2023**<br>**2022**<br>**2023**<br>**2022**<br>**£’000**<br>**£’000**<br>**£’000**<br>**£’000**|
|Trade debtors<br>Amounts due from subsidiary companies<br>Taxation recoverable - Gift Aid<br>Taxation recoverable - VAT<br>Other debtors<br>Prepayments<br>Accrued income|5,240<br>2,766<br>4,366<br>2,303<br>-<br>-<br>1,335<br>1,265<br>1,641<br>5,557<br>1,641<br>5,557<br>141<br>823<br>141<br>823<br>1,423<br>1,245<br>1,423<br>1,245<br>1,672<br>1,454<br>1,672<br>1,454<br>4,805<br>4,732<br>4,831<br>4,684|
|**Total debtors**|**14,922**<br>**16,577**<br>**15,409**<br>**17,331**|



74 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

## **Liabilities** 

## 14. **Creditors: amounts falling due within one year** 

||**Group**<br>**Charity**|
|---|---|
||**2023**<br>**2022**<br>**2023**<br>**2022**<br>**£’000**<br>**£’000**<br>**£’000**<br>**£’000**|
|Trade creditors<br>Amounts due for taxation and social security<br>Other creditors<br>Accruals<br>Deferred income|1,408<br>1,075<br>1,408<br>1,052<br>4,098<br>945<br>4,098<br>945<br>7<br>66<br>7<br>66<br>3,089<br>2,863<br>3,083<br>2,857<br>228<br>249<br>228<br>249|
|**Total creditors**|**8,830**<br>**5,198**<br>**8,824**<br>**5,169**|



|**Movement on deferred income**|**Group**<br>**Charity**|
|---|---|
||**2023**<br>**2022**<br>**2023**<br>**2022**<br>**£’000**<br>**£’000**<br>**£’000**<br>**£’000**|
|Deferred income brought forward<br>Realised during year to 31 March 2023<br>Deferred inyear to 31 March 2023|249<br>281<br>249<br>281<br>(249)<br>(281)<br>(249)<br>(281)<br>228<br>249<br>228<br>249|
|**Deferred income carried forward**|**228**<br>**249**<br>**228**<br>**249**|



Deferred income is comprised of: 

1. Grant receipts where Shelter has not yet satisfied each of the performance conditions set out by the donor, achievement of conditions is not yet within our control, or there is uncertainty as to whether they will be achieved. 

2. Contract receipts where goods or services have not yet been delivered as set out in the contract. 

## 15. **Provision for liabilities and charges – group and charity** 

||**2023**|**2022**|
|---|---|---|
||**£’000**|**£’000**|
|Balance at 1 April 2022|3,296|3,493|
|Utilised during the year|(143)|(215)|
|Additions in the year|(313)|18|
|**Balance at 31 March 2022**|**2,840**|**3,296**|



All dilapidation costs are provided for. Leases on Shelter's shops and offices usually include a contractual obligation for Shelter to return the property to its original condition at the end of the lease. The costs of doing this are estimated by a chartered surveyor at the commencement of the lease. Shelter recognises a provision and corresponding cost at that point. The provision is reviewed throughout the lease term. Dilapidation costs are payable on lease termination. 

75 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

## **Funds** 

## 16. **Statement of funds** 

|16. **Statement of funds**|||||||
|---|---|---|---|---|---|---|
||**Balance at**|**Income and**|**Total**|**Net gain on**|**Transfers**|**Balance at**|
||**1 April 2022**|**endowments**|**expenditure**|**investments**||**31 March**<br>**2023**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Unrestricted income funds:**|||||||
|General funds|14,771|60,443|(69,612)|-|2,335|7,937|
|Unrealised investmentgain|2,281|-|-|(130)|(1,594)|557|
|**Total general funds**|**17,052**|**60,443**|**(69,612)**|**(130)**|**741**|**8,494**|
|**Designated funds:**|||||||
|Revaluation reserve|4,931|-|-|-|(93)|4,838|
|Property and fixed asset fund|7,526|-|-|-|(648)|6,878|
|Strategic investment fund|-|45|(45)|-|-|-|
|**Total designated funds**|**12,457**|**45**|**(45)**|**-**|**(741)**|**11,716**|
|**Total unrestricted funds**|**29,509**|**60,488**|**(69,657)**|**(130)**|**-**|**20,210**<br>|
|Restricted income funds (note 17)|3,808|13,177|(13,113)|-|-|3,872|
|Permanent endowment - John Rees Fund|39|-|-|-|-|39|
|**Total restricted funds**|**3,847**|**13,177**|**(13,113)**|**-**|**-**|**3,911**|
|**Total funds**|**33,356**|**73,665**|**(82,770)**|**(130)**|**-**|**24,121**|



The statement of funds for the prior year is shown in note 21. 

## **Strategic investment fund** 

The first unrestricted legacy with a value exceeding £750,000 recognised in a given financial year will be split between funds. The first £750,000 will be recognised in general funds and utilised in day-to-day operations as normal. Any value above £750,000 will be recognised in the Strategic Investment Fund and designated for investment in strategically aligned projects. Subsequent unrestricted legacies exceeding £750,000 recognised in the same financial year will be designated in their entirety. 

## **Revaluation reserve** 

Prior to 2014, Shelter held the Old Street support office at market value, as determined by periodic valuations. Changes in value were recognised in the revaluation reserve. On transition to FRS102, the market value at 31 March 2014 (£7m) was taken to be deemed cost and the support office has since been valued at historical cost. The revaluation reserve therefore holds the total value of revaluations to 31 March 2014, less depreciation charged on the building since. 

## **Fixed asset fund** 

The property and fixed asset fund holds the remaining value of fixed assets not held in the revaluation reserve. Taken together, these two funds equal the net book value of fixed assets on the balance sheet. Fixed assets are held in designated funds in recognition of the fact that they are used by Shelter on an ongoing basis to deliver its activities 

76 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

## **17. Statement of restricted funds** 

|**17. Statement of restricted funds**||
|---|---|
|**Restricted fund name**<br>**Funder**<br>**Purpose of funding**|**Balance at 1 April**<br>**2022**<br>**£'000**<br>**Income**<br>**£'000**<br>**Expenditure /**<br>**transfers**<br>**£'000**<br>**Balance at 31**<br>**March 2023**<br>**£'000**|
|DIY Skills Advisers<br>B&Q Limited and<br>Kingfisher Plc<br>Providing funding and in-kind support for DIY skills advice<br>and support services.<br>National Homelessness<br>Advice Service<br>Ministry of Housing,<br>Communities and Local<br>Government<br>Provide nationally consistent, free, quality homelessness<br>and housing advice, training and information to frontline<br>audiences in England.<br>Supporting Tenancies,<br>Accommodation and<br>Reconnections<br>London Councils<br>Providing specialist prevention support for adults at risk<br>of experiencing homelessness.<br>Housing Law & Debt<br>Advice (Tayside & Borders)<br>- Scottish Housing Law<br>Service<br>Scottish Legal Aid Board<br>Representation and advice services for people facing<br>court action for mortgage or tenancy repossession.<br>Empty Homes<br>Scottish Government<br>To bring empty homes in Scotland back into use through<br>the establishment of Empty Homes officers.<br>Justice Fellowship<br>Legal Education<br>Foundation<br>Providing legal services across our Hubs in Manchester<br>and Plymouth, offering a range of services to assist<br>people facing homelessness or housing issues, including<br>litigation and specialist advice.<br>Time for Change Dundee<br>National Lottery<br>Community Fund<br>To combine Shelter's organisational learnt experience<br>with the lived experience of people who have been<br>homeless in Dundee to better develop responses locally.<br>Building Better<br>Opportunities Motiv8 -<br>Manchester Hub<br>National Lottery<br>Community<br>Fund/European Social<br>Fund<br>Supporting disadvantaged individuals and families to<br>enter or re-enter education, training and/or employment.<br>Transforming the Private<br>Rented Sector Manchester<br>The Nationwide<br>Foundation<br>Place based project to investigate how the Private Rented<br>Sector in Greater Manchester can be improved for<br>vulnerable tenants.|40<br>707<br>(747)<br>**-**<br>44<br>479<br>(506)<br>**17**<br>8<br>469<br>(501)<br>**(24)**<br>(1)<br>289<br>(285)<br>**3**<br>154<br>393<br>(457)<br>**90**<br>40<br>68<br>(109)<br>**(1)**<br>-<br>-<br>(1)<br>**(1)**<br>3<br>120<br>(123)<br>**-**<br>40<br>101<br>(105)<br>**36**|



77 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

|**Restricted fund name**<br>**Funder**<br>**Purpose of funding**|**Balance at 1 April**<br>**2022**<br>**£'000**<br>**Income**<br>**£'000**<br>**Expenditure /**<br>**transfers**<br>**£'000**<br>**Balance at 31**<br>**March 2023**<br>**£'000**|
|---|---|
|Specialist Adviser Support<br>Services - Money Advice<br>Service<br>Money and Pensions<br>Service (MaPS) & the<br>Welsh Government<br>To provide professional support to debt advisers in<br>England and Wales through advice services and resource<br>production.<br>Lancashire Building Better<br>Opportunities (Age of<br>Opportunity)<br>National Lottery<br>Community<br>Fund/European Social<br>Fund<br>To engage and inspire disadvantaged young and hard-to-<br>reach unemployed or economically inactive people and to<br>improve work readiness and employability of the over 50s<br>in the Lancashire Area.<br>Lancashire Building Better<br>Opportunities (Investing in<br>Youth)<br>National Lottery<br>Community<br>Fund/European Social<br>Fund<br>To engage and inspire disadvantaged young and hard-to-<br>reach unemployed or economically inactive people and to<br>improve work readiness and employability of the over 50s<br>in the Lancashire Area.<br>Lancashire Building Better<br>Opportunities (Changing<br>Futures)<br>National Lottery<br>Community<br>Fund/European Social<br>Fund<br>To engage and inspire disadvantaged young and hard-to-<br>reach unemployed or economically inactive people and to<br>improve work readiness and employability of the over 50s<br>in the Lancashire Area.<br>Norwich Social<br>Prescribing Service<br>Norfolk County Council<br>Linking health, social services, advice and community<br>resources to maximise outcomes for individuals and<br>reduce pressures on public services.<br>Our Journey Home<br>Glasgow<br>National Lottery<br>Community Fund<br>To prevent children and families in Glasgow becoming<br>homeless; to secure safe and affordable permanent<br>accommodation.<br>Hackney Advice Grant<br>London Borough of<br>Hackney<br>To advise and support residents of Hackney in overcoming<br>housing problems and challenges. To support the<br>development of an advice network in the district, one<br>which shares resources and expertise.<br>Health Now Coordinator<br>Greater Manchester<br>Groundswell Network<br>Support UK<br>Tackling health inequalities faced by homeless people.<br>Sheffield - Domestic<br>Abuse Housing Support<br>Service<br>Philip King Charitable<br>Trust/ Evan Cornish<br>Foundation<br>Sheffield – Domestic Abuse Housing Support Service.<br>Outreach Service (Network<br>Rail)<br>Network Rail<br>To support the rail industry’s ambition to provide a route<br>out of homelessness for every person sleeping rough<br>around the rail network.|194<br>569<br>(640)<br>**123**<br>5<br>28<br>(33)<br>**-**<br>3<br>16<br>(16)<br>**3**<br>(13)<br>66<br>(60)<br>**(7)**<br>22<br>101<br>(116)<br>**7**<br>71<br>-<br>(71)<br>**-**<br>2<br>64<br>(66)<br>**-**<br>29<br>89<br>(92)<br>**26**<br>11<br>105<br>(58)<br>**58**<br>63<br>456<br>(321)<br>**198**|



78 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

|**Restricted fund name**<br>**Funder**<br>**Purpose of funding**|**Balance at 1 April**<br>**2022**<br>**£'000**<br>**Income**<br>**£'000**<br>**Expenditure /**<br>**transfers**<br>**£'000**<br>**Balance at 31**<br>**March 2023**<br>**£'000**|
|---|---|
|ASG Foodbank Outreach<br>National Lottery<br>Community Fund<br>To provide housing related and other social welfare advice<br>to residents of London, to create links with other advice<br>agencies and provide housing awareness workshops to<br>upskill non specialists in the voluntary/third sector<br>Children In Need Family<br>Service Expansion<br>Children in Need, The<br>Garfield Weston<br>Foundation and the Liz and<br>Terry Bramall Foundation<br>Providing intensive support to families; going out into the<br>community to provide advice; training and building<br>capacity across the sector.<br>Legal Education<br>Foundation<br>Legal Education<br>Foundation<br>Funding to support a trainee Solicitor within our Law<br>Service who will work on strategic litigation arising from<br>casework referrals.<br>Glasgow Community Grant<br>Glasgow City Council<br>Working with people with lived experience of<br>homelessness in Glasgow so they can be part of and<br>inform our work tackling the housing emergency whilst<br>undergoing personal journeys of development.<br>Restricted to Sheffield<br>Rough Sleeping, Drug, and<br>Alcohol Service<br>Sheffield City Council<br>To provide housing support to entrenched rough sleepers<br>to help them move into independent living.<br>Research on Temporary<br>Accommodation<br>Joseph Rowntree<br>Foundation<br>&<br>Trust for London<br>To conduct a survey of over one thousand people living in<br>temporary accommodation and brought together findings<br>from this, as well as recommendations for policy change,<br>in a piece of research titled Still Living in Limbo: Why the<br>use of temporary accommodation must end.<br>Time for Change Dundee<br>National Lottery<br>Community Fund<br>To combine Shelter's organisational learnt experience<br>with the lived experience of people who have been<br>homeless in Dundee to better develop responses locally.<br>Changing Futures -<br>Manchester<br>Manchester City Council<br>Funding for local organisations to work in partnership to<br>better support those who experience multiple<br>disadvantage, including homelessness, substance misuse,<br>mental health issues, domestic abuse, and contact with<br>the criminal justice system.<br>RBL Homeless Armed<br>Forces<br>The Royal British Legion<br>Funding over three years (September 2022 to August<br>2025) to fund Shelter England and Scotland (in partnership<br>with Shelter Cymru and Housing Rights NI) to train RBL<br>advisors to advise veterans on housing issues directly,<br>such as homelessness, accessing housing, eligibility,<br>advocacy and more.|26<br>-<br>(26)<br>**-**<br>40<br>224<br>(225)<br>**39**<br>21<br>74<br>(97)<br>**(2)**<br>2<br>72<br>(73)<br>**1**<br>5<br>92<br>(73)<br>**24**<br>26<br>62<br>(84)<br>**4**<br>11<br>46<br>(47)<br>**10**<br>101<br>133<br>(203)<br>**31**<br>-<br>318<br>(146)<br>**172**|



79 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

|**Restricted fund name**<br>**Funder**<br>**Purpose of funding**|**Balance at 1 April**<br>**2022**<br>**£'000**<br>**Income**<br>**£'000**<br>**Expenditure /**<br>**transfers**<br>**£'000**<br>**Balance at 31**<br>**March 2023**<br>**£'000**|
|---|---|
|Changing Futures GROW<br>Campus - Greater<br>Manchester Combined<br>Authority<br>Greater Manchester<br>Combined Authority<br>(GMCA)<br>Funds GROW Traineeships across Greater Manchester,<br>including at the GMCA and four Local Authority areas.<br>Provides meaningful employment roles for people who<br>have experienced multiple disadvantage and supports<br>systemic change by removing barriers to employment and<br>creating opportunities for Local Authorities to co-produce<br>and co-deliver their services.<br>TOAS Triage Project<br>Fidelity UK Foundation<br>Funding over two and a half years (April 2022 - September<br>2024) to set up an automated triage system for Shelter's<br>helpline and webchat, so that only priority calls get<br>through to advisors.<br>VCFS Lot 1 Training<br>Department for Levelling<br>Up, Housing and<br>Communities (DLUHC)<br>To build the capacity, skills and knowledge of a range of<br>frontline staff and volunteers in England through the<br>provision of effective, quality homelessness and housing<br>training, information resources and skills development.<br>VCFS Lot 2 Advice Line<br>Department for Levelling<br>Up, Housing and<br>Communities (DLUHC)<br>The specialist advice team to deliver housing,<br>homelessness and welfare benefit advice via telephone,<br>webchat and digital tools, to new and existing frontline<br>audiences.  This service will be for professional and<br>volunteer use only and it will not deliver advice directly to<br>the general public or people who are at risk of or are<br>experiencing homelessness.<br>Liverpool City Council<br>Families Team<br>Liverpool City Council<br>Providing Housing Right Workers based within Liverpool<br>City Council’s Families Teams, providing a dedicated<br>resource for vulnerable families experiencing / at risk of<br>homelessness.<br>Birmingham and Solihull<br>NHS Trust  Peer Mentors<br>Birmingham and Solihull<br>Mental Health Foundation<br>Trust (NHS England)<br>To support service users who come into contact with the<br>Criminal Justice System and are experiencing mental<br>health conditions to reduce re-offending behaviours and<br>improve their engagement and resilience in the<br>community.<br>Birmingham FIRST Peer<br>Mentor Services-St<br>Andrews<br>Birmingham and Solihull<br>Mental Health Foundation<br>Trust (NHS England)<br>To support those service users going through transition<br>from secure care into the community, or those living in the<br>community experiencing mental health concerns with<br>improving engagement with services and resilience in the<br>community.<br>A Future Foundation for<br>Families (National Lottery<br>Community Fund)<br>National Lottery<br>Community Fund<br>To work with families and their supports in the Glasgow<br>city area to effect positive changes at individual and<br>system level.|-<br>225<br>(129)<br>**96**<br>-<br>72<br>(33)<br>**39**<br>-<br>787<br>(718)<br>**69**<br>-<br>654<br>(583)<br>**71**<br>-<br>143<br>(13)<br>**130**<br>-<br>121<br>(95)<br>**26**<br>-<br>97<br>(100)<br>**(3)**<br>-<br>97<br>-<br>**97**|



80 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

|**Restricted fund name**<br>**Funder**<br>**Purpose of funding**|**Balance at 1 April**<br>**2022**<br>**£'000**<br>**Income**<br>**£'000**<br>**Expenditure /**<br>**transfers**<br>**£'000**<br>**Balance at 31**<br>**March 2023**<br>**£'000**|
|---|---|
|Network Rail Southern<br>Region<br>Network Rail<br>Outreach person centred support for people who are<br>sleeping rough in train stations.<br>Family Adviser Post<br>(Aberdeen)<br>Anonymous<br>Supporting families and pregnant women facing<br>homelessness to improve their housing outcomes as well<br>as gathering insights and lived experience to effect long<br>term change for these groups.<br>Salford HHPA<br>Salford Integrated Care<br>Partnership (NHS)<br>Funded contract as part of the Salford Innovation and<br>Improvement Fund aiming at improving neighbourhood<br>based care. Peer-led service supporting those<br>experiencing homelessness to get better access to<br>healthcare.<br>Restricted - Scotland<br>Various<br>Small donations restricted to specific areas of work in<br>Scotland.<br>Restricted - Services<br>Various<br>Small donations restricted to specific areas of work in<br>England.<br>Other funds: income<br><£60k*<br>Various<br>Various.|-<br>175<br>(140)<br>**35**<br>-<br>123<br>(11)<br>**112**<br>-<br>90<br>(7)<br>**83**<br>18<br>1,061<br>(729)<br>**350**<br>876<br>3,649<br>(3,897)<br>**628**<br>1,967<br>740<br>(1,376)<br>**1,331**|
|**Total**|**3,808**<br>**13,177**<br>**(13,113)**<br>**3,872**|



The statement of restricted funds for the prior year is shown in note 21. 

81 



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## **18. Net assets between funds – group** 

|||||**Group**|
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Endowment**|**Total**|
||**funds**|**funds**|**funds**|**funds**|
||**£'000**|**£'000**|**£'000**|**£'000**|
|Fund balances as at 31 March 2023 are represented by:|||||
|Tangible fixed assets|11,716<br>|-|-|11,716|
|Investments|6,439<br>|-|39|6,478|
|Net current assets|4,895|3,872<br>|-|8,767|
|Provisions|(2,840)<br>|-<br>|-|(2,840)|
|**Total net assets**|**20,210**|**3,872**|**39**<br>|**24,121**|



## **Other information** 

## **19. Related party transactions** 

Trustees are not entitled to, and did not receive, any remuneration in respect of their services throughout the year. Travel expenses incurred by trustees in respect of Shelter meetings amounted to £5,779 (2022: £1,350) during the year. The number of trustees incurring expenses during the year was seven (2022: four). 

Shelter received donations totalling £30,665 from trustees during the year (2022: £21,600). 

During the year ended 31 March 2023 the following related party transactions were recognised: Polly Neate is chair and Andy Harris is a trustee of the charity Become, which was invoiced £258 for office rental during the year (2022: £840 for training and publications). A balance of £258 was owed to Shelter as at 31 March 2023 (2022: nil). 

During the year ended 31 March 2023, Shelter didn't recognise any income from Purple Futures LLP in relation to a Transforming Rehabilitation contract (2022: £620k). In June 2021 this contract ended, and Transforming Rehabilitation became known as Justice Services. 

No settlement payments were made to directors during the year (2022: £25,000). 

Shelter Trading Limited is a trading subsidiary of Shelter. During the year ended 31 March 2023 Shelter received gift aid of £383,977 from Shelter Trading Limited (2022: £419,865). A balance of £1,365k was owed to Shelter, by Shelter Trading Limited as at 31 March 2023 (2022: £1,265k). 

There were no other related party transactions during the year ended 31 March 2023. 

## **20. Trading subsidiary** 

The principal activities of Shelter Trading Limited (STL) Company No. 02573404 in the period under review were the sale of new goods via Shelter’s retail chain, managing the corporate sponsorship activities of Shelter, the National Campaign for Homeless People Limited, and the sale of donated goods under the retail gift aid scheme on behalf of Shelter, the National Campaign for Homeless People Limited. 

Audited financial statements have been prepared for Shelter Trading Limited and all taxable profit is gifted to Shelter. 

|**Shelter Trading Limited**|**2022**|**2021**|
|---|---|---|
||**£’000**|**£’000**|
|Total income|2,011|969|
|Cost of sales|(234)|(293)|
|**Gross profit**|**1,777**|**676**|
|Selling and distribution costs|(1,039)|(247)|
|Administration costs|(265)|(45)|
|**Netprofitgifted to Shelter**|**473**|**384**|



As at 31 March 2023, Shelter Trading Limited had total assets of £1,436,332 (2022: £1,388,511) and total liabilities of £1,341,219 (2022: £1,293,398). 

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## **Prior year disclosures** 

## **21. Prior year disclosures** 

## **21(a) Consolidated statement of financial activities for the year ended 31 March 2022 (incorporating income and expenditure accounts)** 

||**Notes**|**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|---|
|||**Funds**|**Funds**|**2021**|
|||**£'000**|**£'000**|**£'000**|
|**Income from:**|||||
|Donations and legacies|2|39,785|5,395|45,180|
|**Charitable activities:**|||||
|Grants and contracts for housing advice and support|5|7,108|6,908|14,016|
|Training and resources for housing professionals|5|935|1,218|2,153|
|Other|5|1,230|51|1,281|
|Retail operations|3|12,536|-|12,536|
|Investments|4|4|-|4|
|**Total income and endowments**||**61,625**|**13,572**|**75,197**|
|**Expenditure on:**|||||
|Raising donations and legacies|2|15,715|416|16,131|
|Retail operations|3|11,911|-|11,911|
|**Charitable activities:**|||||
|Housing advice and support:|||||
|Face-to-face advice||12,448|4,890|17,338|
|Intensive support||8,683|2,591|11,274|
|Telephone and online advice services||5,644|1,433|7,077|
|Training and resources for housing professionals||2,069|3,215|5,284|
|Campaigning||2,471|98|2,569|
|Research and policy||1,706|225|1,931|
|**Total expenditure on charitable activities**||**33,021**|**12,452**|**45,483**|
|**Total expenditure**||**60,647**|**12,878**|**73,525**|
|**Net income/(expenditure) before investment gains/(losses)**||**978**|**694**|**1,672**|
|Net gains/(losses) on investments|12|526|-|526|
|**Net income/(expenditure) for the year**|20|**1,504**|**694**|**2,198**|
|Reconciliation of funds:|||||
|Fund balances at the start of the year||28,005|3,153|31,158|
|**Fund at the end of the year**|16, 18|**29,509**|**3,847**|**33,356**|



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## **21(b) Donations and legacies: income and expenditure (prior year)** 

||**2022**|**2022**|**2022**|
|---|---|---|---|
||**Unrestricted**|**Restricted**|**Total**|
||**£'000**|**£'000**|**£'000**|
|**Income from donations and legacies:**||||
|Individuals|30,753|632|31,385|
|Donated services|229|-|229|
|Charitable foundations|868|1,491|2,359|
|Corporate donors|1,777|1,276|3,053|
|Legacies|6,158|1,996|8,154|
|**Total**|**39,785**|**5,395**|**45,180**|
|||||
|**Expenditure on raising donations and legacies:**|**2022**|**2022**|**2022**|
||**Unrestricted**|**Restricted**|**Total**|
||**£’000**|**£'000**|**£'000**|
|Direct staff costs|6,989|16|7,005|
|Direct non-staff costs and allocated support costs|8,726|400|9,126|
|**Total**|**15,715**|**416**|**16,131**|



Shelter has been notified of legacies with an estimated value of £4.33m (2021: £8.60m) which have not been included in income for the year ended 31 March 2022, because either probate has not been received or Shelter is not satisfied that the amount receivable can be reliably measured. 

The cost of raising donations and legacies increased significantly due to the resumption of face-to-face fundraising following the end of pandemic-related social distancing measures. and continued investment in community fundraising and our fundraising lottery, both of which enable us to reach new audiences while helping to ensure Shelter’s financial sustainability in the long term. 

Restricted non-staff costs of raising donations and legacies are funds passed on to partners in grant agreements where Shelter is the lead partner. Unrestricted non-staff costs of raising donations and legacies are primarily the costs of developing and distributing fundraising materials, and allocated support costs (see note 7). 

## **21(c) Retail operations: income and expenditure (prior year)** 

||**2022**|**2022**|**2022**|
|---|---|---|---|
||**Unrestricted**|**Restricted**|**Total**|
||**£'000**|**£'000**|**£'000**|
|**Income from retail operations:**||||
|Donated goods|10,784|-|10,784|
|Purchased goods|373|-|373|
|COVID-19 support grants|1,042|-|1,042|
|HMRC Job Retention Scheme (furlough)|27|-|27|
|Other|337|-|337|
|**Total**|**12,563**|**-**|**12,563**|
|**Expenditure on retail operations:**||||
|Direct staff costs|4,592|-|4,592|
|Direct non-staff costs and allocated support costs|7,319|-|7,319|
|**Total**|**11,911**|**-**|**11,911**|
|**Net income available for charitable application**|**652**|**-**|**652**|
|**22(d) Income from investments (prior year)**||||



||**2021**|
|---|---|
||**£'000**|
|Interest on cash at bank|2|
|Listed securities|2|
|**Total**|**4**|



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## **21(e) Contracts and grants from local authorities (prior year)** 

Listed below are grants from and contracts with local authorities in excess of £2,000 recognised in the year ended 31 March 2021. The list is prepared in compliance with section 37 of the Local Government and Housing Act 1989. 

|**Funder**|**Purpose of funding**|**Income**|**Expenditure**|
|---|---|---|---|
|||**2021**|**2021**|
|||**£’000**|**£’000**|
|**District, borough and county councils in**||||
|**England and Wales:**||||
||Provides a single point of access for single people and|||
||childless couples who are homeless or at risk of|||
|Birmingham City Council|homelessness.|97|97|
||Support for rough sleeper clients who have not previously|||
|Birmingham City Council|engaged with services.|83|74|
||Supporting rough sleeper clients who have other needs to|||
||access housing of their choice and provide support to enable|||
|Birmingham City Council|them to sustain their tenancy.|5|4|
|Blackburn with Darwen|Provides welfare and debt information and advice services|||
|Borough Council|within the Borough of Blackburn with Darwen.|185|174|
||Supported accommodation pilot to create an informed view of|||
||the provision of Support within the borough, taking account of|||
|Blackburn with Darwen|the different standards currently provided and the issues|||
|Borough Council|facing residents.|53|28|
||Provide a free, impartial confidential advice to the residents of|||
||the district of King's Lynn & West Norfolk regardless of race,|||
|Borough Council of Kings Lynn|religion, gender, sexual orientation, age, marital status or|||
|& West Norfolk|disability.|70|41|
||Provide a Programme Coordinator for Dorset Rough Sleeping|||
||Drug and Alcohol Treatment Programme on behalf of Dorset|||
||Council in order for the council to satisfy a number of health|||
|Dorset Council|service obligations.|29|28|
||This contract is to provide intensive floating support to people|||
|Dorset Council|who have been rough sleepers in Dorset Council area.|107|63|
||Provide Family Support Packages made up of specialist|||
||housing, debt, money management and welfare benefits|||
||advice and support to ensure families are able to sustain their|||
|Dorset County Council|homes.|120|101|
||Intensive support of families at risk of homelessness funding|||
||for one advice, support & guidance worker to provide|||
||specialist level housing & homelessness help to residents in|||
|London Borough Of Hackney|Hackney via face to face, telephone and online support.|50|48|
||We are contracted to deliver Housing Advice to families who|||
||have no recourse to public funds who have been referred to|||
||Children and Families Services, but who are not yet viewed to|||
|London Borough Of Hackney|meet threshold for a Section 17 assessment or support.|20|15|
||Providing specialist prevention support for adults at risk of|||
||experiencing, homelessness in partnership with Thames|||
|London Councils|Reach, Stonewall Housing, Praxis and St Mungo's.|1,003|994|
||As part of the London Youth Gateway, Shelter provides|||
||specialist advice, support & guidance on any housing or|||
|London Councils|homelessness issue to young people between 16-25 years old.|49|49|
||As part of the Supporting Tenancies, Accommodation and|||
||Reconnections project, Praxis and Shelter provide specialist|||
||work to support migrants and refugees with No Recourse to|||
|London Councils|Public Funding (NRPF).|108|114|
||To provide support to voluntary homelessness service|||
||organisations and ensure they are aware of the policies|||
|London Councils|affecting their clients.|41|45|
||To deliver an innovative support programme for people with|||
|Manchester City Council|complex needs in Manchester who are at risk of homelessness.|162|61|



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||Debt prevented and/or reduced and improved financial|||
|---|---|---|---|
|Norwich City Council|capability.|28|28|
||To improve the mental health of the local community by|||
|Public Health England funding|focusing on systemic housing, welfare and benefits issues, all|||
|via Blackburn Council|of which impact negatively on mental health and wellbeing.|80|29|
|Public Health England funding|To improve support and outcomes for people experiencing|||
|via Sheffield City Council|rough sleeping who have drug and alcohol dependence needs.|30|25|
||Provides both practical assistance and support to help people|||
||who are at risk of losing their home, and those who have been|||
||homeless to recover quickly, settle into their accommodation|||
|Sheffield City Council|and sustain a positive lifestyle in the community.|938|946|
||A specialist non-clinical support service for people with drug|||
|Sheffield City Council|and alcohol misuse in a vulnerable housing situation.|323|306|
||Provides support, help and advice for the most vulnerable|||
||households in Sheffield by providing packages of support to|||
|Sheffield City Council|ensure that homelessness does not re-occur.|30|31|
||Preventative advice and support on homelessness issues,|||
||advice on statutory homelessness applications, support to|||
||access private rented sector accommodation & access to|||
|Southwark Council|Shelter London Hubs including Information Resource centre.|126|134|
||To contribute to preventing homelessness in Sunderland|||
||through the delivery of specialist housing advice within|||
|Sunderland City Council|Sunderland, hosted by Community Housing.|33|37|
||Provision of frontline housing advice, homelessness|||
|Westminster Borough Council|prevention and support services.|410|361|
|**Total**||**4,180**|**3,833**|
|**Local authorities in Scotland:**||||
||Housing advice for households at risk of homelessness|||
|Aberdeen Council|through legal proceedings.|33|65|
||To establish a locally responsive model for homeless|||
|Glasgow City Council|individuals with multiple and complex needs in Glasgow.|78|83|
||Independent advocacy in relation to housing issues for eligible|||
|North Lanarkshire Council|persons in North Lanarkshire.|20|1|
||Provide transport for families in temporary accommodation in|||
|South Lanarkshire Council|South Lanarkshire.|6|0|
||Client-focused housing support service for families affected|||
||by homelessness and who have complex needs across the|||
|South Lanarkshire Council|South Lanarkshire area.|38|132|
|**Total**||**175**|**281**|
|**De minimis contracts and grants:**||||
|Various|Other grants and contracts: income <£2k|1|1|
|**Total**||**1**|**1**|



## **London Councils** 

|**London Councils Grant Summary**|**Grant awarded**<br>**£**|**Grant spent**<br>**£**|
|---|---|---|
|Lead Partner-Shelter|456,078|448,073|
|Delivery partner-Thames Reach|397,235|415,056|
|Delivery partner- St Mungo's|40,182|39,195|
|Delivery partner- Stonewall Housing|110,000|110,000|
|**Total**|**1,003,495**|**1,012,324**|
||||
|**Expenditure on:**|**Grant awarded**<br>**£**|**Grant spent**<br>**£**|
|Staffing|746,221|765,469|



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|Running cost*|108,652|110,990|
|---|---|---|
|Premises cost|50,980|49,775|
|Central overheads|97,642<br>|86,090|
|**Total**|**1,003,495**|**1,012,324**|



*Running cost is comprised of travel & subsistence, IT & communication, translation, direct office cost, marketing cost, training cost, recruitment cost and client related cost. 

Shelter received £1,003,495 from London Councils during financial year 2021/22. 

Shelter works in partnership with other organisations to deliver this project. As lead partner, Shelter receives all income from London Councils and distributes it to the other partners. 

Shelter has paid a total of £547,417 to partner organisations in 2021/22, as shown in the table above. 

The entirety of the grant, including the portion retained by Shelter and that distributed to partners, has been spent in accordance with the grant agreement. 

The total overspend on this project is £8,829. Thames Reach overspent by £17,821. Shelter underspent by £8,005 and St Mungo's by £987. Shelter had a B/F balance of £292 from FY 19/20 and this was approved by London Councils to be used in FY 21/22. 

- For the 20/21 S37 disclosure in the accounts, the following errors were identified: 

- The S37 disclosure should have read that there was a B/F balance of £292 from 19/20, instead of 18/19 as stated in the accounts. 

- There was also a rounding error in the total expenditure of the grant awarded column, which should have read as £1,000,092 per the sum of the figures above it, instead of £1,000,091. 

- There was also an error in the total grant spent by Shelter. The total grant spent by Shelter should have read as £460,909, instead of £459,474 and the total grant spent should have been £1,026,143, instead of £1,024,708. 

- The grant spent on Running Cost should have stated £116,733, instead of £116,226 and the grant spent on Central Overheads should have been £92,367, instead of £91,439. 

- The overspend by Shelter should therefore have read as £8,235, instead of £6,800 and the total overspend should have read £26,051, instead of £24,616. 

## **London Councils Grant Summary - Praxis expansion** 

||**Grant awarded**|**Grant spent**|
|---|---|---|
||**£**|**£**|
|Lead Partner-Shelter|29,510|18,424|
|Delivery partner-PRAXIS|121,424|103,694|
|**Total**|**150,934**|**122,118**|
||||
|**Expenditure on:**|**Grant awarded**<br>**£**|**Grant spent**<br>**£**|
|Staffing|111,988|95,240|
|Running cost*|13,379|8,271|
|Premises cost|6,450|-|
|Central overheads|19,117|18,607|
|**Total**|**150,934**|**122,118**|



*Running cost is comprised of travel & subsistence, IT & communication, translation, direct office cost, marketing cost, training cost, recruitment cost and client related cost. 

Shelter received £150,934 from London Councils during financial year 2020/21 in relation to immigration advice services for the service users with "No Recourse to Public Funding" as part of the STAR expansion project. 

Shelter works in partnership with the Praxis organisation to deliver this project. As lead partner, Shelter receives all income from London Councils and distributes it to the other partners. 

Shelter has paid a total of £121,424 to the partner organisation for the 2020/21 financial year, as shown in the table above. 

The entirety of the grant, including the portion retained by Shelter and that distributed to partners, has been spent in accordance with the grant agreement. 

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Total actual underspend on this project is £28,816. Praxis underspent by £17,730 and Shelter by £11,086. The underspend will be used to extend the project into FY 21/22. 

## **21(f) Direct and apportioned costs (prior year)** 

## **(a) Breakdown of direct costs and apportioned support costs by type** 

||**Direct costs**|**Apportioned**<br>**support costs**|**Total costs 2022**|
|---|---|---|---|
||**£'000**|**£'000**|**£'000**|
|**Expenditure on:**||||
|Raising donations and legacies|14,396|1,735|16,131|
|Retail operations|9,555|2,356|11,911|
|**Charitable activities:**||||
|Housing advice and support:||||
|Face-to-face advice|13,490|3,848|17,338|
|Intensive support|8,801|2,473|11,274|
|Telephone and online advice services|5,266|1,821|7,087|
|Training and resources for housing professionals|4,228|1,056|5,284|
|Campaigning|2,045|524|2,569|
|Research andpolicy|1,565|366|1,931|
|**Total expenditure on charitable activities**|**35,395**|**10,088**|**45,483**|
|**Total direct and apportioned costs**|**59,346**|**14,179**|**73,525**|



Direct costs are directly attributable to the relevant department. Indirect support costs are apportioned on the basis of full-time equivalent staff numbers. Support costs are further broken down below. 

The method for allocating support costs has been updated to better reflect the operational resources required to run the retail chain, as also referenced in note 3. 

## **(b) Breakdown of apportioned support costs** 

|**(b) Breakdown of apportioned support costs**|||
|---|---|---|
||**2022**|**2021**|
||**£'000**|**£'000**|
|Human resources|3,766|3,350|
|Finance|1,720|1,707|
|Information technology|5,585|5,776|
|Facilities|1,622|766|
|In-house design and creative|1,278|1,970|
|Other corporate costs|208|1,212|
|**Total apportioned support costs**|**14,179**|**14,781**|



Other corporate costs decreased significantly in 2021/22, following what was a large increase in accrued expenditure in 2020/21. This was a result of untaken annual leave due to many staff being unable to use their full allowance due to travel restrictions and social distancing. Shelter therefore allowed staff to carry over a greater number of days into 2021/22 than policy would usually dictate. 

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## **21(g) Statement of funds (prior year)** 

|**21(g) Statement of funds (prior year)**|||||||
|---|---|---|---|---|---|---|
||**Balance at**|**Income and**|**Total**|**Net gain on**|**Transfers**|**Balance at**|
||**1 April 2021**|**endowments**|**expenditure**|**investments**||**31 March**<br>**2022**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Unrestricted income funds:**|||||||
|General funds|12,906|61,625|(57,906)|-|(1,854)|14,771|
|Unrealised investmentgain|1,755|-|-|526|-|2,281|
|**Total general funds**|**14,661**|**61,625**|**(57,906)**|**526**|**(1,854)**|**17,052**|
|**Designated funds:**|||||||
|Revaluation reserve|5,024|-|-|-|(93)|4,931|
|Property and fixed asset fund|6,011|-|-|-|1,515|7,526|
|Strategic investment fund|2,309|-|(2,741)|-|432|-|
|**Total designated funds**|**13,344**|**-**|**(2,741)**|**-**|**1,854**|**12,457**|
|**Total unrestricted funds**|**28,005**|**61,625**|**(60,647)**|**526**|**-**|**29,509**|
|Restricted income funds (note 17)|3,114|13,572|(12,878)|-|-|3,808|
|Permanent endowment - John Rees Fund|39|-|-|-|-|39|
|**Total restricted funds**|**3,153**|**13,572**|**(12,878)**|**-**|**-**|**3,847**|
|**Total funds as at 31 March 2022**|**31,158**|**75,197**|**(73,525)**|**526**|**-**|**33,356**|



89 



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## **21(h) Statement of restricted funds (prior year)** 

|**Restricted fund name**|**Funder**|**Purpose of funding**|**Balance at 1**<br>**April 2021**<br>**£'000**|**Income**<br>**£'000**|**Expenditure /**<br>**transfers**<br>**£'000**|**Balance at 31**<br>**March 2022**<br>**£'000**|
|---|---|---|---|---|---|---|
|||To bring empty homes in Scotland back into use<br>through the establishment of Empty Homes|295|305|(446)|**154**|
|Empty Homes|Scottish Government|officers.|||||
|||Working with people with lived experience of|||||
|||homelessness in Glasgow so they can be part of|||||
|||and inform our work tackling the housing|7|78|(83)|**2**|
|Glasgow Community||emergency whilst undergoing personal journeys of|||||
|Grant|Glasgow City Council|development.|||||
|Housing Law & Debt<br>Advice (Tayside &|Scottish Legal Aid|Representation and advice services for people<br>facing court action for mortgage or tenancy|-|269|(269)|**-**|
|Borders)|Board|repossession.|||||
|Inspiring Change|National Lottery|Supporting people with multiple and complex|209|1,127|(1,059)|**277**|
|Manchester|Community Fund|needs.|||||
|Supporting Tenancies,<br>Accommodation and||Providing specialist prevention support for adults|-|1,003|(995)|**8**|
|Reconnections|London Councils|at risk of experiencing homelessness.|||||
|National<br>Homelessness Advice|Ministry of Housing,<br>Communities and|Provide nationally consistent, free, quality<br>homelessness and housing advice, training and|-|1,947|(1,903)|**44**|
|Service|Local Government|information to frontline audiences in England.|||||
|Housing Voluntary||Legal advice and representation for people with|-|206|(206)|**-**|
|Grant Scheme|Scottish Government|housing related issues.|||||
|Scotland Welfare<br>Reform Advisory|Scottish Legal Aid|Free advice to frontline staff helping clients who<br>have a housing problem who are in receipt of a|-|71|(70)|**1**|
|Service|Board|welfare benefit.|||||



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|**Restricted fund name**|**Funder**|**Purpose of funding**|**Balance at 1**<br>**April 2021**<br>**£'000**|**Income**<br>**£'000**|**Expenditure /**<br>**transfers**<br>**£'000**|**Balance at 31**<br>**March 2022**<br>**£'000**|
|---|---|---|---|---|---|---|
|||Small donations restricted to specific areas of|2|1,634|(1,627)|**9**|
|Restricted - Scotland|Various|work in Scotland.|||||
|||Small donations restricted to specific areas of|357|1,183|(1,183)|**357**|
|Restricted - Services|Various|work in England.|||||
||National Lottery||||||
|Motiv8 (Building Better|Community<br>Fund/European Social|Supporting disadvantaged individuals and families<br>to enter or re-enter education, training and/or|-|101|(98)|**3**|
|Opportunities)|Fund|employment.|||||
||B&Q Plc and Kingfisher|Providing funding and in-kind support for DIY skills|85|482|(527)|**40**|
|DIY Skills Advisers|Plc|advice and support services.|||||
|||Funding to support homeless prevention and|||||
|||resettlement and to make a one-off payment|||||
|||where there is no alternative source of money<br>available or the situation is an emergency one, e.g.|6|138|(85)|**59**|
||The Albert Hunt Trust|for accommodation, food, toiletries, household|||||
|Hardship|and John Young|items and other essentials|||||
|Nationwide|Nationwide Building|Supporting Nationwide’s Community Funding<br>Programme, providing insight on national housing|48|61|(36)|**73**|
|Partnership Policy|Society|policy.|||||
|Transforming the<br>Private Rented Sector|The Nationwide|Place based project to investigate how the Private<br>Rented Sector in Greater Manchester can be|33|86|(79)|**40**|
|Manchester|Foundation|improved for vulnerable tenants.|||||
|Specialist Support|Money and Pensions<br>Service (MaPS) & the|To provide professional support to debt advisers<br>in England and Wales through advice services and|126|684|(616)|**194**|
|Services|Welsh Government|resource production.|||||



91 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

|**Restricted fund name**|**Funder**|**Purpose of funding**|**Balance at 1**<br>**April 2021**<br>**£'000**|**Income**<br>**£'000**|**Expenditure /**<br>**transfers**<br>**£'000**|**Balance at 31**<br>**March 2022**<br>**£'000**|
|---|---|---|---|---|---|---|
|||Application of a service-design approach to|||||
|Scotland Digital Debt|SLAB (Scottish Legal|content, so we can better understand the user<br>needs of clients and advice seekers engaging with|26|76|(80)|**22**|
|Advice|Aid Board)|our website and co-create solutions with them.|||||
|||Developing a training programme and|||||
|||comprehensive advice for the financial services|||||
|||sector; to better support vulnerable customers<br>experiencing or at risk of homelessness. The|-|345|(12)|**333**|
|||funding will also support our emergency helpline|||||
|Breaking The Cycle|HSBC|to answer calls from those most in need.|||||
|West Midlands L&D||To provide peer mentoring support to individuals<br>with mental health concerns, who are in contact|-|64|(42)|**22**|
|Peer Mentor|NHS Trust|with the criminal justice system.|||||
|||Supporting migrants and refugees with No|||||
|London Councils<br>expansion project-||Recourse to Public Funding, as part of Supporting<br>Tenancies, Accommodation and Reconnections|11|108|(114)|**5**|
|PRAXIS|London Councils|project.|||||
|||Linking health, social services, advice and|||||
|Norwich Social||community resources to maximise outcomes for<br>individuals and reduce pressures on public|16|101|(95)|**22**|
|Prescribing Service|Norfolk County Council|services.|||||
|Entrenched Rough|Birmingham City|Support for rough sleeper clients who have not|20|101|(92)|**29**|
|Sleeper worker|Council|previously engaged with services.|||||
|||Funding our GROW programme to help people with|||||
|Societe Generale –||lived experience of homelessness into|||||
|Getting Real||employment through access to 12-month paid|-|259|(43)|**216**|
|Opportunities of Work||placements with work, training and personal|||||
|(GROW) Programme|Societe Generale|development opportunities.|||||



92 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

|**Restricted fund name**|**Funder**|**Purpose of funding**|**Balance at 1**<br>**April 2021**<br>**£'000**|**Income**<br>**£'000**|**Expenditure /**<br>**transfers**<br>**£'000**|**Balance at 31**<br>**March 2022**<br>**£'000**|
|---|---|---|---|---|---|---|
|Our Journey Home|||||||
|Glasgow (National<br>Lottery Community|National Lottery|To prevent children and families in Glasgow<br>becoming homeless; to secure safe and|53|140|(122)|**71**|
|Fund)|Community Fund|affordable permanent accommodation.|||||
|The Housing Rights|Legal Education|Funding to support a trainee Solicitor within our<br>Law Service who will work on strategic litigation|24|98|(101)|**21**|
|Advocacy Project|Foundation|arising from casework referrals.|||||
|||To provide focused, expert advice and advocacy|||||
|||for families and pregnant people facing housing or|||||
|||homelessness issues, including outreach, rights|-|105|(19)|**86**|
|Edinburgh Hub Family||awareness work and evidencing systemic practice|||||
|Adviser|The Volant Trust|issues.|||||
|GROW Coordinator -||Funding towards delivering Shelter’s GROW<br>Programme, which breaks down barriers to|9|147|(53)|**103**|
|Adecco|Adecco|employment for people with lived experience.|||||
|||To combine Shelter's organisational learnt|||||
|Time For Change|National Lottery|experience with the lived experience of people<br>who have been homeless in Dundee to better|-|45|(35)|**10**|
|Dundee|Community Fund|develop responses locally.|||||
|||Taking a proactive approach to working with|||||
|Private Rented Sector<br>Homeless Prevention||tenants in the Private Rented Sector in Dundee to<br>prevent build-up of arrears and reduce the risk of|-|75|(65)|**10**|
|in Dundee|Scottish Government|homelessness.|||||
|Blackburn Better|Blackburn with Darwen|Prevention project delivered through the co-<br>location of a mental wellbeing coach with partners|-|80|(29)|**51**|
|Mental Health|Borough Council|who deliver services that fall under the remit of|||||



93 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

|**Restricted fund name**|**Funder**|**Purpose of funding**|**Balance at 1**<br>**April 2021**<br>**£'000**|**Income**<br>**£'000**|**Expenditure /**<br>**transfers**<br>**£'000**|**Balance at 31**<br>**March 2022**<br>**£'000**|
|---|---|---|---|---|---|---|
|||the wider determinants of health such as debt|||||
|||advice, welfare, and housing support.|||||
|||Funding for local organisations to work in|||||
|||partnership to better support those who|||||
|||experience multiple disadvantages, including<br>homelessness, substance misuse, mental health|-|162|(61)|**101**|
|Changing Futures|Manchester City|issues, domestic abuse, and contact with the|||||
|Manchester|Council|criminal justice system.|||||
|Health Now|Groundswell Network|Tackling health inequalities faced by homeless|1|116|(88)|**29**|
|Coordinator|Support UK|people.|||||
|||Supporting the design and road mapping of a|||||
|Digital Triage Design<br>Project||system to triage people when they contact our<br>National Helpline and online advice services, so<br>that homelessness emergencies can be seen|-|95|(91)|**4**|
||Fidelity UK Foundation|quickly and effectively.|||||
|Sheffield - Domestic<br>Abuse Housing|Philip King Charitable<br>Trust/ Evan Cornish|Sheffield – Domestic Abuse Housing Support|-|67|(56)|**11**|
|Support Service|Foundation|Service.|||||
|||To support the rail industry’s ambition to provide a<br>route out of homelessness for every person|104|373|(414)|**63**|
|Network Rail|Network Rail|sleeping rough around the rail network.|||||
|||To provide housing related and other social|||||
|||welfare advice to residents of London, to create|||||
|||links with other advice agencies and provide|1|53|(28)|**26**|
|ASG Foodbank|National Lottery|housing awareness workshops to upskill non|||||
|Outreach|Community Fund|specialists in the voluntary/third sector|||||



94 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

|**Restricted fund name**<br>**Funder**<br>**Purpose of funding**|**Balance at 1**<br>**April 2021**<br>**£'000**<br>**Income**<br>**£'000**<br>**Expenditure /**<br>**transfers**<br>**£'000**<br>**Balance at 31**<br>**March 2022**<br>**£'000**|
|---|---|
|Justice First<br>Fellowship<br>Legal Education<br>Foundation<br>Providing legal services across our Hubs in<br>Manchester and Plymouth, offering a range of<br>services to assist people facing homelessness or<br>housing issues, including litigation and specialist<br>advice.<br>Shelter’s Family<br>Services – Sheffield &<br>Bristol<br>Children in Need, The<br>Garfield Weston<br>Foundation and the Liz<br>and Terry Bramall<br>Foundation<br>Providing intensive support to families; going out<br>into the community to provide advice; training and<br>building capacity across the sector.<br>Emergency Appeal<br>Various<br>Emergency funding for the continuing telephone<br>and online advisory service.<br>Birmingham Families<br>Oak Foundation<br>To empower underserved communities in<br>Birmingham to fight homelessness through<br>advice, systemic change, and funding support for<br>grassroots community organisations.<br>Other funds: income<br><£60k<br>Various<br>Various|17<br>135<br>(111)<br>**41**<br>127<br>104<br>(191)<br>**40**<br>-<br>203<br>(178)<br>**25**<br>-<br>232<br>-<br>**232**<br>1,537<br>913<br>(1,476)<br>**974**|
|**Total**|**3,114**<br>**13,572**<br>**(12,878)**<br>**3,808**|



95 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

## **Included in the note is the following projects funded by the National Lottery Community Fund:** 

Our Journey Home Glasgow, for which Shelter received £140,465.04 and spent £122,328.75 in 21/22 

Time For Change Dundee, for which Shelter received £45,127 and spent £34,614.95 in 21/22 

ASG Foodbank Outreach, for which Shelter received £53,000 and spent £27,269.93 in 21/22 

Lancashire Building Better Opportunities, for which Shelter received £57,979 and spent £63,116 in 21/22 

## Included in the note is the following project funded by the National Lottery Community Fund: 

|Included in the note is the following project funded by the National Lottery Community Fund:|||||
|---|---|---|---|---|
||**Balance at 1**<br>**April 2021**<br>**£'000**|**Income**<br>**£'000**|**Expenditure /**<br>**transfers**<br>**£'000**|**Balance at 31**<br>**March 2022**<br>**£'000**|
|Inspiring Change Manchester (National Lottery Community Fund)|213|1,119|(1.060)|272|
|**Total**|**213**|**1,119**|**(1,060)**|**272**|



The values in the National Lottery Community Fund disclosure do not match up to those under Inspiring Change Manchester in the main table above, because the latter includes income from other sources utilised in this project. 

||**Deferred / (accrued) income brought**|**Cash received**|**2021-**|**Deferred / (accrued) income at**|**31**|**March**|
|---|---|---|---|---|---|---|
||**forward**||**22**|||**2022**|
||**£'000**||**£’000**|||**£’000**|
|Inspiring Change Manchester (National Lottery Community<br>Fund)|-||1,119|||-|
|**Total**|**-**||**1,119**|||**-**|



96 



DocuSign Envelope ID: F26F21D8-1C9B-46C3-8E0E-1B470F528322 

## **21(i) Analysis of net assets between funds (prior year)** 

|||||**Group**|
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Endowment**|**Total**|
||**funds**|**funds**|**funds**|**funds**|
||**£'000**|**£'000**|**£'000**|**£'000**|
|Fund balances as at 31 March 2022 are represented by:|||||
|Tangible fixed assets|12,457|-|-|12,457|
|Investments|6,568|-|39|6,607|
|Net current assets|13,780|3,808|-|17,588|
|Provisions|(3,296)|-|-|(3,296)|
|**Total net assets**|**29,509**|**3,808**|**39**|**33,356**|



97