Charity bosses warn delays to probate are causing them to cut back services

The research found that almost all charities are affected by hold-ups in probate and that over a quarter of charity bosses have had to cut jobs as probate delays have affected their finances

Charities are being forced to cut back on vital services as probate delays squeeze their finances, new research reveals.

A study by wealth manager Rathbones shows that more than a quarter of charity leaders have had to make job cuts due to the impact on their funds. The research showed that 99%, are feeling the effects of probate hold-ups. Andy Pitt, head of charities at Rathbones, said: "Significant delays with probate are causing charities to miss out on millions of pounds of income, which they need to be able to fund vital services and life-saving research".

UK charities typically receive about £4bn each year from legacies. However, families are now waiting over 11 months on average for probate, following recent increases in wait times. Rathbones, managing £9.4bn for over 3,000 charities, reports that around 14% of charity income is tied up due to probate issues. This has led to tough choices for charity bosses to bridge the financial shortfall.

Eight out of 10 senior charity executives admit recruitment plans are taking a hit, while over half have reduced their services. Additionally, 43% have sold assets like property, and 27% have been forced into redundancies to manage the situation.

Mr Pitt said: "The logjam is not only adding to the financial stress of grieving families, with property sales falling through or having to pay interest payments on inheritance tax – but is also resulting in many senior charity executives having to make difficult decisions on how to cope with hindered cash flow."

He added: "They don’t know how long they could be waiting to receive these much-needed funds and it’s impossible to budget or plan for the future."