SUMMARY: For immediate release
Charity energy bills surge 12% since Iran war, with impact locked in for half a decade - Electricity bills for charities and small businesses rise 12% in just four months, as US military attacks on Iran drive up costs. - Prices not forecast to return to pre-war levels until 2032, finds new analysis from Cornwall Insight. - More than one in five (23%) community spaces now face difficulties paying for energy and utility bills, finds the Warm Welcome Campaign, a network of nearly 6,000 community spaces. - New analysis from charity funder, Social Investment Business, reveals energy efficiency in shops and offices is improving twice as fast as community buildings – leaving charities disproportionately exposed.
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Charity electricity bills surge 12% since Iran war, with impact locked in for half a decade
Community centre solar installation at Higher Folds Community Centre in Greater Manchester "Targeted funding from the Warm Homes Plan could transform the charity sector argue funders."
Electricity bills for charities and small businesses have surged 12% since the start of USA attacks on Iran, with market analysts Cornwall Insight not forecasting a return to pre-war levels before 2032, more than half a decade.
The pressure of soaring bills comes at a time when charities are struggling to keep pace with rising demand, with new data released today by the Warm Welcome Campaign revealing that more than one in five community spaces have already faced difficulties paying for rising energy bills.
But charity funder, Social Investment Business, warn that there is a chronic lack of investment reaching these charities and community groups, despite the mounting pressure from rising energy costs. Further research published today finds that over the past five years properties such as offices and shops have improved their energy efficiency at twice the rate of community buildings.
Social Investment Business warn this will only compound the impacts of rising electricity costs and the strain on services for vulnerable people across the country, including youth work, neighbourhood health, nurseries, hospice care and food banks.
A window of opportunity
The analysis arrives as government decides how it will deploy £3.3 billion of unallocated investment announced in the Warm Homes Plan.
Genevieve Maitland Hudson, Deputy Chief Executive at Social Investment Business, said: "The volatility and rising costs of electricity is creating an acute crisis for many charitable organisations; a crisis amplified by a chronic lack of investment to futureproof the sector. "The Warm Homes Fund presents a unique opportunity to support these crucial community spaces, bringing down bills for the buildings at the heart of our most deprived communities, but only if the Plan brings targeted support. That opportunity must be grasped with urgency to meet the pressures faced by the charity and voluntary sector. "This is a significant opportunity for the government to join up its missions by strengthening the infrastructure communities depend on, and which government has pinned its vision for a decade of national renewal."
Social Investment Business, a non-profit which is already investing £15m to support energy resilience for charities, is urging the government to recognise the opportunity presented by the Warm Homes Fund to transform community buildings. Their work to finance solar PV and battery storage has seen bills for some charities reduce by more than 80%, something they argue could be rolled out across the country with government support.
The Warm Welcome Campaign echo this urgency, telling us that communities continue to show extraordinary resourcefulness in keeping spaces open throughout the cost-of-living crisis, but that goodwill and volunteer energy could not be a substitute for fit-for-purpose buildings.
David Barclay, Campaign Director at Warm Welcome Campaign said: “Warm spaces are not a nice extra, they are where people go when they are lonely, cold or in a crisis. Over 14.4 million people live in poverty in the UK and 7% of people experience chronic loneliness. As energy bills continue to rise, the window for intervention is narrowing. Without action, we risk losing the services and spaces communities depend on, and which cannot easily be rebuilt.”
Cornwall Insight’s analysis suggests that a moderate solar PV installation on a charity building such as a hospice could reduce their electricity bills by thousands each year.
Jacob Briggs, Energy Users Lead at Cornwall Insight, says: “Business electricity bills have risen by 12% in just 4 months, and our forecasts suggest they are unlikely to return to pre-war levels this decade, so this is far more than a short-term squeeze. The burden is falling on some of the most resource constrained organisations in the country and, without intervention, charities and community groups could face years of sustained high electricity costs. At the same time, demand for their services only continues to grow, placing further strain on already stretched budgets. "With more than one in five community spaces already struggling to pay their energy bills, according to the Warm Welcome Campaign, some charities are facing the very real prospect of closure. The good news is there are ways to cut costs. Our data shows a solar PV installation could save a typical charity building around £6,000 a year on electricity costs, money that could be reinvested directly into frontline services. Expanding access to these technologies would not only improve energy resilience and cut costs but will help safeguard the vital community spaces that so many rely on.”
Seeing the potential
While charities argue government funding could unlock the pace and scale needed for the charity sector, a growing number of community buildings are installing solar PV and batteries, thanks to investment from Social Investment Business.
Nottingham Mencap seized this, installing solar panels and a battery system, alongside upgrades to lighting, glazing and blinds. A self-funded organisation, they have supported people with learning disabilities in their community for over 70 years and the impact on their costs has been dramatic: bills have reduced by more than 80%, with improvements also improving efficiency and creating a more welcoming environment.
Danny Hewis, CEO of Nottingham Mencap, said: “When we had the opportunity to secure funding for building upgrades, we knew we had to take advantage of it. The upgrades would also help us futureproof the building, shield it from volatile energy prices and create a more welcoming space. Since the work has been completed, we’ve seen an 82% decrease in our energy bills. “Overall, it’s not surprising to hear that the sector is falling behind, and it’s easy to see why, there is less support and funding available. With less to invest, we don’t have the same ability to make savings as others do, and it can often feel like a postcode lottery when it comes to the support on offer.”
Higher Folds Community Centre and Nursery in Leigh, Greater Manchester, provides work-related training, childcare, social activities for children and young people, as well as an in-house grocery shop to help residents access affordable food. It remains a trusted hub for local families, supporting both day-to-day needs and longer-term wellbeing.
With soaring energy prices placing the organisation under significant strain, they applied for funding to install solar panels, LED lighting and other energy efficiency improvements.
Centre manager David Rainford recalls the urgency of the situation: “In 2017 we were looking at £12,000 a year for our energy costs, but by 2022 when it was time to choose another tariff, we were looking at approximately £40,000 per year. I knew we were in big trouble. If costs stayed that high, we were going to be out of business, so we needed to get costs down, and protect ourselves against future price increases. Although the savings weren’t instant we’re now looking at saving just over £1,000 per month. “I think it’s vital that central Government, local authorities and community organisations work together as equals towards this shared goal of supporting the sector, otherwise it won’t work”
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NOTES TO THE EDITOR:
## Photos available here ## (https://drive.google.com/drive/folders/1BYspHoZ9v-V5kR59CeopCMT8b8YyDzRl?usp=sharing)
About Social Investment Business At Social Investment Business we finance social change. Through a mix of funding, investment and innovation, we back the organisations that make up the social economy – those tackling inequality, improving lives, and driving positive change every day. As one of the UK’s largest social investors, we’ve deployed over £0.8bn in loans and grants since 2002. We’ve supported more than 6,000 charities and social enterprises, while using our expertise to research, innovate and advocate for the sector. Driving our work are three core priorities: unlocking energy resilience, transforming public services, and strengthening community assets like housing, community buildings and land. ## https://www.sibgroup.org.uk/ ## (https://www.sibgroup.org.uk/)
About Warm Welcome Campaign The Warm Welcome Campaign wants everyone in the UK to find a place of belonging and reconnection. We resource, connect and champion a network of Warm Welcome Spaces and bring together a growing coalition of local, regional, and national partners representing the worlds of charity, faith, business, government, and philanthropy. Last winter, Warm Welcome Spaces hosted 2.6 million visits across more than 5,300 spaces. There were more than 58,200 visits to the Warm Welcome map. 70% of people say that since coming to a Warm Welcome Space they now never or rarely feel isolated. With disconnected communities costing the UK economy almost £32 billion a year, this is clear evidence that Warm Welcome is changing lives. By working together, we can unlock the power of community spaces made by and for everyone, creating a thriving network of hope and reconnection fuelled by human warmth. ## https://www.warmwelcome.uk/ ## (https://www.warmwelcome.uk/)
About Cornwall Insight Cornwall Insight is a leading provider of research, analysis, consulting and training to businesses and stakeholders engaged in the Great British and Irish energy markets. To support our customers, we leverage a powerful combination of analytical capability, a detailed appreciation of regulation codes and policy frameworks, and a practical understanding of how markets function. ## https://www.cornwall-insight.com/ ## (https://www.cornwall-insight.com/)
Notes on the data: 1. Electricity costs forecasting was developed in partnership with leading market analysts at Cornwall Insight, utilising their business energy forecasting tools to assess SME and VCSE energy bills over the next fifteen years and the potential of a large-scale solar and battery programme for the VCSE sector. 2. Analysis of the energy efficiency gap between community buildings and other non-domestic buildings, such as shops and offices, was conducted by Social Investment Business' data team. It is an update to our 2024 research and shows the gap is widening as other non-domestic buildings improve at twice the pace of community buildings. 3. Warm Welcome conducted a survey with their 6,000 spaces in April 2026, which highlighted the range of challenges they face in continuing to serve their communities. More than one in five responding spaces (23%) reported facing difficulties paying for energy and utility bills in the past year, and in a separate question, more than half (53%) were worried about the impact of rising energy costs (22% 'very worried, 31% 'moderately worried').
The full research will be live on our website later this morning.
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