Changes to make sure the Waste & Resources Action Programme – WRAP – can remain financially stable and meet its future tasks are to see a number of staff made redundant.
The charity said today (17 January) that it needed to cut fixed costs to offset a significant drop in income it has faced since 2015, and also in light of anticipated government funding cuts next year (2018/19).
WRAP’s latest figures showed an increase in income but Defra funding has been falling
Subject to consultation with staff which is now underway, this is anticipated to lead to about 25 job losses.
At present the charity employs around 180 people and chief executive Marcus Gover said the move to cut staff had been “a difficult decision”.
Staffing figures in the past have been higher at around the 200 mark – in 2008 WRAP made 38 people redundant but started increasing staffing numbers almost immediately.
Diversifying
The organisation put the need for the current changes down to “successive cuts in government funding along with challenges in diversifying its revenue streams” which “mean WRAP needs to cut fixed costs to offset the significant drop in income it has faced since 2015. Subject to consultation with staff that is now underway, this is anticipated to lead regrettably to the loss of around 25 members of staff.”
However, WRAP’s income during 2016/17 was actually higher than the previous year at £27.2 million up by £400,000 compared to £26.8 million 2015/16. And, WRAP cut its spending on waste and resource management during the year by more than £1 million to £10.7 million. On the income side it is developing new revenue streams including £650,000 from the Costcutter chain under producer responsibility rules and also cash from the carrier bag 5p donation to charity scheme.
Long-term trend
WRAP told letsrecycle.com that it accepted that last year’s income was higher although this “was up year-on-year because of some material one off items but the core Defra grant decreased”. And, it emphasised that this “doesn’t change the long-term trend or the real decrease we expect for next year”.
Marcus Gover: “We will need to focus on the areas where we can make the biggest impact”.
Since 2015, the charity explained, Defra funding for WRAP had fallen from nearly £14m in 2015/16 to under £10m in 2017/18.
Chief executive, Mr Gover who besides being involved in the resource sector has experience as a commercial director and in general management, said today: “We are in an environment where there is continued pressure on public spending, as well as ongoing economic uncertainty, and WRAP is not immune to that.
“We have been able to achieve great results by combining our resources with others to achieve impact with less funding, and that approach will continue. But we have now reached a point where we also need to make significant costs savings.”
Compassionate
Mr Gover continued: “Sadly, we cannot achieve the scale of savings we need without losing staff. This has been a difficult decision and is always a last resort. I am determined that the process of redundancy will be as fair and as compassionate as possible.
“The redesign will enable WRAP to accelerate its transition to an organisation which catalyses change through partnership. We will need to focus on the areas where we can make the biggest impact. We will also need increased support, including financial, from existing and future business partners.”
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Source: letsrecycle.com Waste Managment
