Report of Trustees and Annual Accounts 2010–2011 Improving later life. Every day. Age UK has a vision of a world in which older people flourish. We aim to enrich the lives of people in later life by bringing together our talents, services and solutions to do more. We are one organisation ready to help. Every day. Chairman’s message 04
Chief Executive’s message 08
Our strategy and plans for 2010–11 13
Social impact statements 22
01 Information and advice 22 02 Independence at home 25 03 Have fun and stay well 31 04 Campaign for change and public affairs 38 05 International 45 06 Research 50 07 Supporting local communities 53
Public benefit reporting 59
Social enterprise 60
Planning for 2011–12 and beyond 70
Financial review 73
Corporate governance 83
Independent auditor’s report to the members of Age UK 92
Age UK 121 Chairman’s message
In its second year, Age UK has firmly established our new identity, letting the world know that we have arrived and that we are intent upon changing later life for the better. Age UK stands up for the 14 million people in the UK who have now reached later life, and also speaks for the long-term interests of every one of us so that experiences of ageing grow better for each passing generation. We work to make a difference in five key areas: Money Matters, Health & Wellbeing, Home & Care, Travel & Lifestyle and Work & Learning. We also aim to help improve later life around the world through our international work and close to home through our support for local charities across the UK. A first year of hard work transformed our organisation post-merger. We then launched as Age UK in April 2010, with our first television advertising campaign featuring distinguished actors Eleanor Bron, Brian Cox and Ian McKellen. All three waived their fees because they felt so strongly about the importance of our cause. The launch also featured extensive media coverage of Age UK, and a direct marketing campaign to tell 2.3 million supporters and customers about our work. We succeeded in our aim of making the name of Age UK known – by the end of the year our research showed that two-thirds of people in Britain said that they had heard of Age UK. The launch of Age UK was accompanied by the launch of Age Scotland, Age Cymru and Age NI, supported by events, media coverage, and campaigns in each country. By the end of the year more than 130 local organisations in England and six in Wales had decided to adopt the new brand, beating our target by more than 30 per cent. Throughout the year, local partners organised launch activities generating publicity, calling attention to the services they provide and highlighting local issues. Age UK also rebranded more than 440 shops, meaning that up to 20 million people across the UK walk past a shop bearing our name each week.
Age UK stands up for the 14 million people in the UK who have now reached later life, and also speaks for the long-term interests of every one of us.
04 This year, we also launched our new website. This is a platform that 2m brings together all the separate parts of our Group – which were individuals have visited previously represented by numerous different websites – and allows the Age UK website our users to find what they need. since its launch in 2010 Our website unites the national and local, with a map on the front page of the site showing what Age UK does in your area. Local Age UK organisations’ sites are now hosted within the overall site, enabling users to find us all in one place online for the first time. The Age UK website (www.ageuk.org.uk) has been a huge success – since launch in May 2010 more than 2 million individuals have visited the site. In the autumn, we celebrated the relaunch of Age UK Enterprises, our financial services business, under the new brand. It was marked by the launch of new equity release and annuity products – both areas in which the financial services industry needs to provide more and better products for later life. We hope not only to provide good value for money but to stimulate others to improve what they have to offer. The financial year 2010–11 saw an expected fall in fundraising income as we continued to hold back spend on fundraising to enable us to invest once the new brand was in place. As the year progressed we began to redevelop our fundraising to reflect the new organisation’s ethos and priorities, and to revitalise fundraising activities using our new identity and brand. Next year one of our major challenges is to stabilise Age UK’s income from voluntary activities and set it on course for future growth. All these achievements took place against an economic and political background that required us to campaign strongly throughout the year, to protect existing services and benefits for older people and to press the case for the new coalition Government to tackle the long-term challenges of an ageing society. As this Report of Trustees demonstrates, we certainly succeeded in making Age UK’s presence felt at Westminster, in Whitehall, in the media and around the country at grassroots level. This year we celebrated the final victory in our long battle to end forced retirement.
05 Age UK is determined to change later life for the better Age UK also increased its charitable expenditure this year, in particular by putting more funds into the pockets of local Age UK and Age Concern charities who faced an exceptionally difficult and uncertain environment. We also gave more to our international work, funding our partner HelpAge International to give more help to older people dealing with the consequences of the disasters in Pakistan and Haiti. We continued to grow and improve our flagship charitable service, Information and Advice. As we report, this year Age UK’s services reached 6 million people, through our free telephone and other information services. We are working more closely than ever with our local partners to deliver a service that combines the expertise of our national charity with the local knowledge and personal approach of local charities. This year, we will be building on our existing track record to start to grow the reach of our other services to match the impact of Information and Advice. Age UK is determined to change later life for the better. This year Age UK has demonstrated its energy and its commitment by maintaining the pace of change inside the organisation, while making a positive difference to the lives of so many older people. There is much more to come and I look forward with confidence to the next few years. I would like to thank my fellow Trustees, Tom Wright and his team, all our staff, volunteers, and supporters for their contribution this year.
Dianne Jeffrey Age UK is determined Chairman to change later life for the better 07 Chief Executive’s message
Age UK works to improve later life as a charity and social enterprise. The charity does this by addressing health inequality, reducing loneliness and isolation, improving retirement incomes and tackling poverty and discrimination against those in later life in all its forms. Our social enterprise addresses market failure and customer needs with a broad portfolio of market leading products and services. Together, our mission is to improve later life, and throughout the year we focused on how we could make a difference to the lives of older people locally, nationally and internationally. Last year, our first as Age UK, we delivered on several fronts and reaffirmed our resolve to be ever more ambitious for the future. Since the formation of the coalition Government in 2010, we have played a leading role in debates about the future of our health and care systems. In May 2011 we were voted Dod’s Charity of the Year by parliamentarians in recognition of our strong parliamentary campaigning work. By summer 2011, we also saw more than 160 local partners become Age UKs, covering well over 90 per cent of the country. We are proud to work with this uniquely important network of local charities that makes a huge difference to the lives of so many older people and that is not sufficiently recognised for its role. In 2011–12, working side by side with our local partners, we are extending our partnership to involve hundreds more smaller groups who help provide a web of friendship, support and practical help for older people in local communities.
Age UK works to improve later life… by addressing health inequality, reducing loneliness and isolation, improving retirement incomes and tackling poverty and discrimination against those in later life in all its forms.
08 Last year we strengthened the delivery of our flagship service, 160 Information and Advice. This year we are working with our partners local partners became to expand our services to help people to stay independent at home Age UKs, covering and to maintain their health and wellbeing. We continue to be very well over 90 per cent active in digital inclusion, and as a partner in the Race Online initiative of the country for 2012, we hope to bring online more of the 6 million older people who are currently digitally excluded. We continue to build our support for international work. In summer 2011, we relaunched our flagship Sponsor a Grandparent programme, along with its new offshoot, Raise a Grandchild, which will bring help to grandchildren being brought up by grandparents in some of the poorest countries in the world. In summer 2011, we joined the appeal to help older people engulfed in the developing famine in Ethiopia, Sudan and Somalia, as part of our work as a member of the Disasters Emergency Committee (DEC). We are continuing to support those affected by the disasters in Pakistan and Haiti. This year we will focus on ensuring that our fundraising is set to grow, now that it has a firm foundation on which to build. Growing public recognition of Age UK will provide a strong platform for our future income generation. We saw a solid performance in our social enterprises in the year, as we restructured our businesses and brought them all under the Age UK banner. A net contribution of £69.4 million from voluntary income and social enterprise, the same as the previous year, has held. We completed the sale of those businesses inherited from the merger that did not fit with Age UK’s strategy while investing in the future success of our core products. Already we are beginning to see positive signs of stronger performance through our social enterprise activities. The year saw an improvement in our balance sheet, with an overall increase in our reserves of £7.4 million, despite an operating deficit of £1.2 million, which was primarily due to one-off factors and support for our new partners. As this report shows, we have maintained and increased the efficiency savings that we made post-merger and have invested in our charitable expenditure and in our plans for future growth.
09 Throughout the year we focused on how we could make a difference to the lives of older people locally, nationally and internationally.
A major project last year resulted in our move in April 2011 to our new base at Tavis House, a hub for many organisations working with older people, including HelpAge International and Age UK Camden, and our London-based staff. Our move to Tavis House will deliver savings of £1 million a year on rent and operating costs, as well as bringing together staff from the two main London sites we inherited from the merger. Throughout 2010–11, in preparation for the move, we undertook basic maintenance work to prepare this sadly neglected building to be re-occupied. We have created a wonderful working environment and a welcoming centre to show our visitors what we and our partners have to offer. I would like to take this opportunity to thank our Chairman, Dianne Jeffrey, for her unwavering commitment to ensuring that Age UK maximises its social impact for older people. Dianne and her fellow Trustees have provided strong support over our first two years and have worked to ensure that Age UK is well positioned for the future. Thank you also to our staff and volunteers for their invaluable work.
Tom Wright CBE Chief Executive
10 Our mission is to improve later life We want to ensure that we can all look forward to getting older Our strategy and plans for 2010–11
Age UK’s mission is to improve later life. We want to ensure that we can all look forward to getting older. The merger of Age Concern England and Help the Aged in 2009 created a new organisation to make a practical difference to the lives of older people both now and in the future. The objectives for the Age UK Group Business Plan 2010–11 were to: • achieve our charitable purpose, to improve the quality of life for older people • invest in our long-term future, taking new directions to guarantee sustainable income streams • transform our organisation and culture to maximise our performance across the whole of the Age UK Group. In an uncertain economic environment, all parts of the Age UK Group worked together to deliver these objectives as a united organisation.
Our charitable objectives in 2010–11 For the charity, we again set seven objectives to improve the lives of older people:
01 Information and Advice 02 Independence at home 03 Have fun and stay well 04 Campaign for change and public affairs 05 International 06 Research 07 Supporting local communities.
We achieved strong results against these charitable objectives, which are shown on the following pages. We want to ensure that we can all look forward to getting older 13 Our strategy and plans for 2010–11 01
Deliver trusted Information and Advice (I&A) to millions of people
Target Achievement
Reaching 6 million by April 2011. We reached 6.4 million.
Piloting integrated models of national/ We piloted integrated national and local local working. telephone I&A services.
Producing 45 new information guides. We produced 42 new information guides and updated and developed 72 factsheets.
Running Planning for Retirement projects We delivered the Planning for Retirement and Benefits Advice Programmes with local Programme and the Benefits Advice Age UKs and Age Concerns. Programme, and with our local partners identified over £124 million in potential financial gain for older people.
14 Our strategy and plans for 2010–11 02
Provide practical services to help people stay independent at home
Target Achievement
Carrying out more than 15,000 visits Our HandyVan service visited 15,414 homes to older people by our HandyVan service. with more than two tasks completed each visit.
Supporting more people through Last year we supported 48 donors in their our Gifted Housing service. own homes through our Gifted Housing service. This year we supported 49 people and received six new donations.
Providing grants to local Age UKs and We provided grants to local partners for Age Concerns to assist them to help Handyperson Schemes, Winter Warmth people to stay independent at home. and Winter Emergency grants and the E.ON-funded EnergyRight grants programme.
15 Our strategy and plans for 2010–11 03
Create local opportunities for people to have fun and stay well
Target Achievement
Developing services to support healthy More than 1,200 events, reaching an ageing through a range of activities to estimated 60,000 older people, were suit different abilities and needs. held throughout the UK during Falls Awareness Week.
Engaging more than 30,000 people in More than 33,000 people participated every region in England in healthy ageing in Fit as a Fiddle in 2010–11. activities through Fit as a Fiddle.
Tackling isolation and loneliness by – Our Call in Time telephone friendship service developing and testing services that delivered partnerships with local Age UKs. have a focus on friendship with local – We supported Connect with IT programmes Age UKs and Age Concerns and by and the Digital Inclusion Network. providing telephone befriending services. – 85 men in later life became members of our Men in Sheds project. – 38 Tackling Isolation and Loneliness grants awarded to local Age UKs, Age Concerns, forums and friendship centres.
16 Our strategy and plans for 2010–11 04
Campaign for change and public affairs
Target Achievement
Securing entitlements for older people The State Pension was indexed to earnings in set out in the 2010 coalition agreement April 2011 for the first time for 30 years, and in the face of spending cuts. further enhancements to the State Pension were proposed in a Green Paper. The Winter Fuel Payment, free bus passes and Attendance Allowance were all protected in the Autumn 2010 Spending Review.
Building momentum towards radical In 2010 the Dilnot Commission on care reform of social care and the State Pension funding was set up and we argued for extra in this parliament. spending for care in the Spending Review. In 2011 our Care in Crisis report made the case for extra public spending and we campaigned to ensure a favourable reception for the Dilnot report.
Supporting local Age UKs and Age Concerns We provided advice and materials to local and other local organisations to campaign Age UKs arguing against budget cuts during against local cuts that harm the most the winter, especially to care services. vulnerable older people. Numerous local authorities reversed initial decisions on cutting older people’s services.
17 Our strategy and plans for 2010–11 05
Work globally through our partner, HelpAge International
Target Achievement
Increasing the number of people we help Through our partnership with HelpAge to 1.3 million, through development projects International we reached 1.3 million older and emergency relief. people and their families.
Retaining and strengthening our position We participated in the DEC appeal on the Disasters Emergency Committee (DEC). following the devastating floods in Pakistan and continued our support for older people in Haiti. We agreed a joint plan with HelpAge International to scale up our work to support older people in countries where the need is most pressing.
Building the Age UK brand and influence We received approval for two projects globally. from the European Commission and raised our profile in the European Parliament and at the UN.
18 Our strategy and plans for 2010–11 06
Carry out vital research, investing in solutions for later life that will improve ill health and boost quality of life
Target Achievement
Influencing the direction of UK scientific We have agreed our new research strategy research into ageing through a new Age UK and priorities increasing our focus on social research strategy. and applied research.
Encouraging the best scientific researchers to We have awarded 13 new Research into focus on ageing research, through mentoring Ageing grants, totalling £971,857. and developing promising scientists.
Positioning Age UK as research expert We have created a ‘For professionals’ on ageing and older people’s issues section on the Age UK website and published through the creation of a centre for a new range of materials aimed at experts knowledge on ageing. and practitioners.
Maximising Age UK’s impact in the field We have supported various research of research, through partnerships with partnerships with the European Commission, others domestically and internationally. Department of Health, Met Office, British Geriatrics Society, British Society of Gerontology.
19 Our strategy and plans for 2010–11 07
Support local communities
Target Achievement
Achieving 100 Brand Partnerships More than 130 Brand Partnerships with coverage in all English regions. agreed at 1 April 2011, covering over 90 per cent of England.
Rolling out Brand Partnership to We worked with our national partners Age Concerns in Wales and developing to support continued development a strategy for local presence in Scotland of local services in Scotland, Wales and and Northern Ireland. Northern Ireland. There are six local Age Cymru partners.
Offering ‘Friends’ relationships to the We prepared our Friends partnership, remaining Age Concerns in England. which will be offered to more than 200 local groups in 2011.
20 Making a practical difference to the lives of older people both now and in the future Social impact statements Information and advice
We will deliver trusted information and advice 01 to millions of people.
Quality information and advice assists those in later life to access entitlements and services, make informed choices about public services and play a full role in their communities and society. Age UK Information and Advice helps with information about benefit entitlements and how to claim them, finding a care home for a loved one, how to stay living independently at home, staying fit and healthy and accessing health services.
22 Social impact statements Information and advice
Providing essential information and advice 4.8m In 2010–11 we touched the lives of over 6.4 million people with Age UK’s first flagship service, Information and Advice (I&A). This is printed and online an increase of more than 1 million people from last year. This includes information resources the distribution of over 4.8 million printed and online information were distributed in the last year resources. Age UK Advice, our free-to-call information service open 8am–7pm, 365 days per year, answered more than 317,000 enquiries and Age Concern Legal Services received more than 5,600 enquiries. Our retail stores also supported the dissemination of Age UK Information and Advice guides and factsheets. Our most popular resources were our Winter Wrapped Up guide, with the support of British Gas, with 337,385 copies distributed, and Staying Steady, with 265,280 copies distributed. Both of these titles were linked to Age UK campaigns – Spread the Warmth and Falls Awareness. Over 91,000 healthy living resources, over 370,000 More Money in Your Pocket campaign resources and 53,000 LifeBooks were also distributed. We piloted integrated national and local telephone I&A services and will roll this out with local Age UKs in 2011–12. We supported local Age UK I&A delivery by providing £513,308 in I&A grants to 28 local Age UKs, delivering 35 I&A training sessions, producing three I&A Training Packs (I&A Skills, Welfare Benefits, Community Care), a toolkit on user involvement, Involve, Engage, Empower, and comprehensive I&A service-delivery guidance, Delivering Quality I&A Services. Age UK Advice provided out-of-hours telephone Information and Advice services for Age Northern Ireland and launched integrated delivery of advice for callers in Wales with Age Cymru. With our local partners, Age UK Information and Advice identified over £124 million potential financial gain for older people, including through our Benefits Advice and Planning for Retirement programmes.
23 Social impact statements Information and advice
Our More Money in Your Pocket campaign also helped hundreds of thousands of older people to claim benefits to which they were entitled – 250 local partners took part in the campaign; we distributed more than 200,000 leaflets and other materials; and we engaged private-sector partners, including the Coventry Building Society, which promoted the campaign for a fortnight. We also helped to create the Combining to Care partnership in Manchester with the Department for Work and Pensions and the Pension, Disability and Carers Service to provide integrated information, advice, products and services to older people. There was extensive engagement by private- and public-sector partners, including utility companies, police, fire brigade, NHS organisations and Manchester Council. We entered into a three-year partnership with Action for Employment (A4E) to deliver a Money Advice Service and delivered the Elder Abuse and Domestic Violence Programme. This year, we produced 42 information guides and updated or developed 72 factsheets. New resources are being planned for 2011–12 to help people affected by dementia and carers. In addition we agreed a strategic partnership with the organisation TaxHelp for Older People. Supporting our Information and Advice flagship service is also a key focus for our grant-giving. In 2010–11 we ran five information and advice grant programmes, totalling over £700,000 and benefiting more than 380,000 people in later life.
317,000 enquiries were answered by Age UK Advice, our free- to-call information service
24 Social impact statements Independence at home
We will provide practical services to help people 02 stay independent at home.
We know that, given the choice, most people in later life wish to remain living independently in their own homes for as long as possible. Sometimes this can be achieved with just a small amount of practical help which some of our services provide.
25 Social impact statements Independence at home
HandyVan service Our HandyVan service, available in 22 locations across England, helps to improve older people’s lives by making their homes more safe and secure. In 2010–11 our team of 27 fitters visited 15,414 homes and completed more than two tasks on each visit. In a survey of recent HandyVan service clients, 98 per cent of respondents said the service they received was excellent (85 per cent) or good (13 per cent). Ninety per cent said that it made a positive difference in their ability to live at home confidently, and 92 per cent said that it made a positive difference to their wellbeing and peace 15,414 of mind. homes visited by our HandyVan services ‘Your fitter is a very good worker and explains clearly how the things he is fitting work. I would like to thank Age UK for the HandyVan service. When you get old you often hesitate in choosing a suitable service for repairs, etc.’ HandyVan service recipient, Shoreham-by-Sea
In 2010–11 we gave grants to nine existing Handyperson schemes run by local Age UKs and Age Concerns, supporting an additional 1,500 people in later life. Funding for this grant programme is from Wilkinson, which has committed to supporting this work through to 2014.
26 Social impact statements Independence at home
Keeping warm at home Age UK’s Winter Warmth and Winter Emergency grants have helped local Age UKs and Age Concerns to provide more services to help people in later life to stay warm and well during winter. The Winter Warmth grant programme helped 59 organisations to prepare for what proved to be a very long, severe winter. This benefited more than 21,000 older people. The Winter Emergency grant, launched when the weather was at its worst, provided additional funds for a further 21 organisations, benefiting a further 2,000 people in later life. Winter grants were funded by the Spread the Warmth fundraising campaign. Spread the Warmth was launched in October 2010 and 21,000 culminated on 11 February 2011 with Bobble Day, Age UK’s first older people benefited national day of action for older people. from Age UK’s Winter Case study Warmth and Winter Emergency grants An older couple who were confined to their home in a rural village due to the snow called their local Age UK. Although they had adequate provisions in the home their central heating had broken down and they had no relatives living nearby either to help them fix the heating or to take them to their own home while the heating was repaired. The local Age UK sourced a portable heater that could be loaned out for a short time, took it to the couple’s home and checked on their wellbeing. They also contacted a local heating engineer, who was able to repair the boiler the next day. The couple’s daughter later rang the local Age UK to say thank you and that Age UK was the only agency that responded to the problem and resolved all the issues.
Grants funded by E.ON as part of the EnergyRight programme have enabled 17 local Age UKs and Age Concerns to reach 15,000 people in later life, to help them to stay warm at home. The programme, which ended in December 2010, provided information and advice on energy efficiency. Over three-quarters of those programme users surveyed said that they will do something differently to improve the energy efficiency in their home as a result of the information they received through EnergyRight.
27 Improving how older people are supported at a local level Social impact statements Improving how older Independence at home people are supported Gifted Housing Donors to the Gifted Housing service donate their property to Age UK in return for an agreement that we will then make any necessary at a local level repairs and pay for Council Tax, water rates and building insurance. Donors receive personalised support, such as help in arranging care and support and receiving contributions toward care costs. The Gifted Housing service managed 80 properties this year, 49 of which involved supporting donors in their own homes. During the year we received six new donations of properties to the value of £1.05 million.
Helping people to stay at home right to the end of their lives With funding over three years from the Department of Health, Age UK worked this year to develop potential models to support carers in later life to enable their loved ones to die with dignity at home. This unique project, involving six local Age UKs and Age Concerns, focuses on the practical and emotional needs of carers and helping them to support their loved one right to the end of their lives.
Neighbourhood Wardens Programme This programme builds on the success of the seven specialist Older People’s Warden Projects funded by Age UK between 2005 and 2010. Securing a further £89,000 from the Redfern Foundation in 2010 enabled us to develop a two-year project to improve how older people are supported in their neighbourhoods. In 2010–11, we developed a programme of support for neighbourhood and community wardens across England and disseminated 17 small grants towards local events, involving more than 1,000 older residents. We also co-designed a bespoke training package with Age UK Training for roll-out in 2011–12. An evaluation report entitled Going the Extra Mile found that community wardens are well placed to respond to the needs and issues affecting older people at a local level. Older people have reported that, thanks to wardens’ presence and support, they feel safer, more involved in their community, and most of all, more valued.
29 Social impact statements Independence at home
Reducing the risk and fear of crime 7,500 Following last year’s successful Action Against Burglary initiative, the Home Office awarded us further funding in 2010–11. With this older people benefited from our Action Against funding, we carried out research, which involved asking more than Burglary initiative 300 vulnerable people about how to improve consumer markets in home security. The key feedback to the Home Office was that vulnerable older people prefer a trusted expert to survey their home- security needs and give independent advice on products, suppliers and fitters of security products. We trained and supported more than 260 volunteer mentors, who in turn helped 7,500 older people to be more aware of, and better able to guard against, bogus callers, internet scams and distraction burglary.
30 Social impact statements Have fun and stay well
We will create local opportunities for people 03 to have fun and stay well.
We want to ensure that people in later life have opportunities to enjoy life and have fun. We are all living longer, meaning that healthy ageing is a priority for all of us, so that we can stay well and independent and have a healthier later life.
31 Social impact statements Have fun and stay well
Fit as a Fiddle Our nationwide programme supports people aged over 50 with initiatives to promote physical activity‚ healthy eating and mental wellbeing. Fit as a Fiddle is a five-year project funded by a £15.1 million grant from the Big Lottery Fund Well-Being Programme. Fit as a Fiddle programmes are run in partnership with local, regional and national organisations and many projects are delivered locally by local Age UKs and Age Concerns. Since April 2010, more than 33,000 people in later life have participated in Fit as a Fiddle activities and more than 2,000 older volunteers have been recruited and trained. Through the programme, Age UK was able to distribute over 33,000 £3 million in 2010–11 to around 100 local Age UKs and Age Concerns, people in later life helping them to deliver services to improve the wellbeing of older have participated in people in their areas. We also have several national projects focusing Fit as a Fiddle activities. on groups of older people who are harder to reach, including people who are housebound or otherwise physically isolated, people in residential care, older men, and particular community groups such as faith groups.
Digital inclusion Age UK’s Digital Inclusion Network comprises more than 200 organisations, including many local Age UKs and Age Concerns that are involved in helping people in later life get to grips with different technologies. Through the Network, 135,000 people attended a course in 2010–11 and Age UK managed the Silver Surfer grant programme, sponsored by BT, which reached 4,000 extra people.
32
Social impact statements Have fun and stay well
Connect with IT There are three UK-wide annual campaigns under the Connect with IT programme. All have seen significant growth in the numbers of individuals reached as well as the number of partner organisations taking part. Itea and Biscuits week provides taster sessions for all sorts of technology, from texting using a mobile phone, from the basics of using a computer to uploading photos from a digital camera. No question is too simple in these sessions and of the 9,000 people in later life who took part in September 2010, 97 per cent then wished to enrol in formal classes to learn more. 9,000 Myfriends Online week focused on the range of social benefits people in later life of using the internet for people in later life. took part in itea and biscuits week Twenty-one grants of between £500 and £3,000 were distributed to local Age UKs to help them promote activities during Myfriends Online week. ‘The laptops have really excited the lunch club members. We often have queues waiting to have a look on some days. The grant was an amazing gift that will benefit many people for a long time. Thank you.’ Age UK Winchester, Myfriends Online week grant recipients
Our Internet Champion of the Year Competition, judged in January, continued to attract more applicants from around the UK. Joint winners Margaret Goodwin and Dave Howe are inspirational ambassadors for older people and online technology.
34 Social impact statements Have fun and stay well
These three campaigns were ‘highly commended’ at the National eWell-being awards in June 2010. That year also saw the launch of our Reach for IT pilot, which aims to develop a volunteer-led approach to reach some of the most digitally excluded people in later life living in care homes. The project uses technology to improve confidence and wellbeing and helps to reduce social isolation by encouraging contact with family and friends through the use of email, Skype and other social media.
Tackling isolation and loneliness Many local Age UKs provide befriending or home-visiting services and other initiatives that help to tackle isolation and loneliness. Age UK also provides a telephone friendship service, Call in Time, in which corporate volunteers are matched with an older person and call on a weekly basis. The service is made possible through funding from Zurich Community Trust and Prudential. The Tackling Isolation and Loneliness Grant Programme was designed to help Age UK develop more ways of tackling isolation and loneliness among people in later life. A total of 38 Age UKs, Age Concerns, forums and friendship centres across England and Wales were awarded a small grant of up to £2,000. Successful applicants were asked to carry out a survey to find out what might help older people to get involved. They were also asked to trial a new initiative that would address isolation and loneliness, such as a new weekly lunch club or an arts and crafts group. We are also working with three local Age UKs to deliver Men in Sheds, an innovative approach to engaging with older men, with the aim of reducing isolation. Funded by the Sir Jules Thorn Trust and based on a concept originally developed in Australia, Men in Sheds involves providing a workshop, tools and equipment so that men in later life can enjoy the benefits of working in a social group and in an environment they feel comfortable with. The project also provides an opportunity for men in later life to access information, advice and other services that they might not otherwise seek out. During 2010–11, 85 men in later life became members of the three Sheds.
35 Social impact statements Have fun and stay well
Falls Awareness Week 1,200 More than 1,200 events, reaching an estimated 60,000 older people, were held throughout the UK for Falls Awareness Week, 21–25 June events were held throughout the UK for 2010, including exercise sessions, health checks and even a record Falls Awareness Week attempt at chair-based exercise. This was an increase of 17 per cent from 2009. In support of the Falls Awareness Week we also ran our Stop Falling campaign that highlighted the huge impact that falls have on people’s lives and on the health service, and promoted support and interventions that could prevent up to 1 million falls. Around 50 per cent of those who responded to a survey of participants said they had learned how to reduce their risk of falls after attending an event, for example, wearing the right footwear, getting an eye test, or joining an exercise class. ‘People really enjoyed getting out and the venue provided a much more accessible and interesting way of learning about falls than the usual healthcare setting.’ Falls co-ordinator at Bradford and Airedale NHS
‘The webinar was fantastic and very informative… there was a lot of new information in terms of the factual background to falls, how to conduct assessments, and understanding when and where to signpost patients on. A lot of patients knew about the risk of falls but had to be reminded about what to do, where to get help and some of the contributing risk factors.’ Pharmacist, Lewisham
36 Social impact statements Have fun and stay well
Training Age UK Training carries out both charitable and commercial training. This year we spent £4.03 million on charitable training activities. Through this training we improved the quality of health and social care for vulnerable older people by public, private and voluntary sector care providers.
Friendship centres Age UK supports more than 85 friendship centres throughout England independently run by local older people. They provide a range of activities from arts and crafts to tenpin bowling. Centres meet on a monthly basis and offer regular outings and trips. There are also 20 special-interest Age UK friendship centres bringing together people from a wider area, who share interests ranging from sailing and caravanning to theatre and reading.
37 Social impact statements Campaign for change and public affairs
We will make the powers that be listen and act, 04 campaigning for changes in legislation, policy and practice to ensure that they improve older people’s lives. We will raise awareness and understanding of the challenges of later life and change public attitudes to older people.
We campaign on a wide variety of issues that matter to people in later life. We do this through work at an international and a national level, as well as in partnership with local Age UKs and older people’s forums. We also promote well-informed press coverage of issues that affect older people, and create informative PR and mailings to attract the attention of the public and win support for our cause.
38 Social impact statements Campaign for change and public affairs
How we work – Westminster and Whitehall Age UK is the most active voice for people in later life in national debates in Westminster. During the year we had direct contact with more than 250 MPs and meetings with 85, including many of the new 2010 parliamentary intake. We also provided the secretariat for the All Party Parliamentary Group on Ageing and Older People, whose programme this year covered social-care funding and legislation, ageing with HIV, localism and older people, and age equality. During the year we had 16 meetings with ministers. Our wider political work included an exhibition and events programme at the party conferences, with 36 separate events. We also briefed the new opposition frontbench team, with 15 individual meetings, and gave advice to relevant Labour Party policy commission chairs. We significantly increased our local government influencing, publishing a report on Local Action for Later Life and launching our Pride of Place campaign targeting local councillors. Behind the scenes, our policy specialists maintained close contact with dozens of civil servants and political advisers, made submissions to 43 consultations or inquiries, and published seven reports. During the year, we organised a varied programme of 45 events, including our annual Agenda for Later Life conference. We exhibited at eight external conferences and provided speakers for more than 50 external events. We worked with think-tanks to broaden the range of debate on ageing issues and engage with emerging policy thinking, carrying out projects with the Centre for Social Justice, the Fabian Society, Strategic Society Centre, International Longevity Centre UK, and the Local Government Information Unit. We extended our communications, with the launch of the For professionals’ section of the Age UK website, a monthly Policy and Research Update and the Age UK blog, which attracted 27,000 viewings in six months.
39 Social impact statements Campaign for change and public affairs
Spreading the word During the year we sent out a large number of mailings and newsletters to our supporters and other members of the public, helping to raise awareness and to publicise our work, as well as asking the public to support us and our partners through donations, volunteering, campaigning, or getting involved in activities and events. We also used our website and social networking sites, such as Facebook and the Age UK blog, to inform and engage with our supporters. Our new brand helped to ensure that our policy concerns and Information and Advice guides were presented in a striking and 78m attractive way. reached through coverage generated How we work – Age UK in the media by Age UK’s Spread During 2010–11 we issued more than 230 press releases and the Warmth campaign statements, maintaining a high profile for older people’s issues with agenda-setting coverage in national newspapers, TV and radio. In April 2010 we marked the public launch of Age UK with a media campaign highlighting the significance of older voters in the General Election 2010. Age UK commissioned quantitative and qualitative research and used the hard-hitting statistics showing the significance of older voters to launch the Our Power Is Our Number campaign in the media. This was reinforced by a grassroots campaign that saw older people lobbying their local candidates to improve later life by committing to five key election pledges. Starting in November, Age UK’s Spread the Warmth campaign profiled all aspects of Age UK’s vital work to help people in later life during cold weather. Media coverage was achieved consistently throughout the campaign, ranging from articles giving practical advice to campaigning calls on government. More than 240 pieces of coverage generated a reach of over 78 million.
40 Social impact statements Campaign for change and public affairs
Other media campaigns that received extensive media coverage included our: • work to end forced retirement, where a sustained media campaign over five years was key in garnering strong public support • 2011 State Pension Age campaign, maintaining a high political profile • work to support the Hungry to Be Heard campaign to increase awareness of the issue of malnutrition in hospital • Care in Crisis campaign on the funding of social care.
Money matters Our most important financial achievement of the year came to fruition in April, when the Government restored the link between State Pension increases and earnings for the first time since 1980. This implemented the coalition agreement promise of a ‘triple guarantee’ for the State Pension to match the highest of inflation, earnings or 2.5 per cent, extending Labour’s previous plans for re-indexation. Other positive achievements over the year included securing commitments in the Spending Review to maintain retirement entitlements in the face of continuing pressure. Our research on public attitudes to benefits such as Winter Fuel Payment and free bus passes showed strong cross-generational support for the entitlements. There was also less positive news during the year. The decision to link most benefits and many occupational pensions to the Consumer Price Index, rather than the Retail Price Index, will have a long-term impact on retirement incomes. More immediately, the Government’s announcement that the State Pension age will be increased to 66 by 2020 will have a severe impact on people in their late 50s today. During spring 2011 we led campaigning to delay the plans, especially for women, whose pension age is already rising from 60 to 65 during the current decade. More than 2,500 older campaigners supported the campaign. We also looked at how the private sector affects the finances of people in later life. We carried out a research programme into payment mechanisms, which led us to launch a ‘better banking’ campaign to prevent the abolition of cheques before safe alternatives are in place.
41 Social impact statements Campaign for change and public affairs
Health & wellbeing The Government’s proposals for NHS reform were the backdrop to our campaigning on health during the year. Working with leading health charities, we successfully persuaded the Government to improve its plans for patient and local authority involvement in commissioning, and for the co-ordination of care for people with long-term health conditions. We influenced new outcome frameworks for the NHS and public health, which initially discriminated against older people. Alongside this, the Government pledged to implement the Equality Act 2010 by outlawing age discrimination in goods and services, with no exemptions for health services. For many years we have campaigned for dignity and fundamental rights in health services. In August we launched a new phase of our Hungry to Be Heard campaign on malnutrition in hospitals. This exposed the patchy progress made by hospitals and called on the Care Quality Commission to take action to address the issue. In the winter we were delighted when the Rt Hon. Andrew Lansley MP asked the commission to carry out a wave of 100 unannounced inspections on nutrition and dignity, leading to a series of concerning reports in spring 2011 that gained significant media coverage. Our campaigning helped ensure that the Government recognised the importance of depression in later life in the White Paper on public health.
Travel & lifestyle Our work on consumer affairs centred on the publication of The Golden Economy, a major report for Age UK by the International Longevity Centre UK. This led to a wide range of contacts and events with the private sector, as well as a special session at our Agenda for Later Life conference. In the winter there was confirmation that the Government will exempt the insurance industry from the age discrimination provisions of the Equality Act 2010. This came as a huge disappointment, following years of campaigning on the issue. We will continue to mount pressure for insurance to be more widely available and seek an early review of the workings of the industry.
42 Social impact statements Campaign for change and public affairs
Home & care The future of England’s care system continued to be among our greatest concerns. Our top priority for the 2010 Spending Review was to safeguard spending on care and we were delighted by the Government’s decision to allocate £2 billion, which was intended to offset wider cuts to local government budgets. This was the result of our Cut Cake Not Care campaign – the evidence that we submitted to policy-makers included financial modelling on the impacts of care cuts. Unfortunately, not all this extra money ended up reaching frontline care services and many localities were forced to make cuts. We are continuing to put pressure on the Government to prevent devastating cutbacks in future years. The Dilnot commission on the funding of care was launched in summer 2010. Age UK submitted detailed evidence and published key reports making the case for disability benefits and setting out the depth of the funding crisis today. In the autumn, we also launched a photographic exhibition and campaign to highlight the vital role of older carers. The exhibition, Invisible but Invaluable, initially on display at St Martin-in-the-Fields Church in London’s Trafalgar Square, was then displayed by the corporate sponsors for the campaign, British Gas, and by several local Age UKs. We launched two major campaigns to support older people to take action to improve their neighbourhoods. Change One Thing is an initiative to help independent groups work on local issues, while Pride of Place is a campaign that encourages ward councillors to work as community champions with local older people. Alongside this we were successful in amending the Localism Bill to require councils to help disadvantaged groups to make the most of new community powers.
43 Social impact statements Campaign for change and public affairs
Work & learning Work, learning and discrimination are critical issues to help people remain fit and active as we live longer. Our work in this area was dominated by the conclusion of our successful fight to end forced retirement. The Government announced its intention to end forced retirement in summer 2010 and introduced legislation the following spring. From April 2011, employers were no longer able to issue notification of compulsory retirement. This marked the end of a six-year campaign to end the injustice of being forced to stop working on grounds of age alone. Age UK’s role in bringing this reform about has been widely recognised, and in the spring our campaign to end forced retirement was commended as a finalist in the 2011 CIPR Public Affairs Campaign award.
44 Social impact statements International
We will act internationally working with our global 05 partners including HelpAge International. We will help up to 5 million people in developing countries through development projects and emergency relief.
Age UK works with HelpAge International to support local organisations and deliver programmes in more than 40 developing countries. We believe that our partners know best about what must be done in their own countries to tackle poverty, isolation and neglect among older people. We also work to influence legislation and policy at a European level and globally in areas that matter to people in later life.
45 Social impact statements International
HelpAge International £5.4m Age UK continues to support the work of our sister organisation, HelpAge International, which implements long-term development grant provided to HelpAge International and short-term emergency relief work in more than 40 developing countries around the world. In 2010–11 we provided a £5.4 million grant to HelpAge International. Through this grant we have reached 1.3 million older people and their families, taking us further towards our target of reaching 5 million people. The core element of Age UK’s international fundraising is its long-running and very successful Sponsor a Grandparent programme. Launched over 20 years ago, the programme currently has more than 12,000 sponsors, yielding on average £200 a year to help give older people in some of the poorest countries in the world a more stable future. This year we reached 49,000 older people. The scheme will be relaunched alongside Raise a Grandchild in 2011 to bring in more funds and reach more people, especially those who are bringing up their grandchildren. We have also worked with HelpAge International on long-term development programmes supporting older people to build livelihoods and improve their income. As well as responding to disasters and emergencies, we have enabled HelpAge International to continue its work in places that are still trying to recover from conflict or disaster, including the Democratic Republic of Congo, Gaza and Haiti. We are also delivering services and training in countries where there are complex political emergencies, such as Myanmar (Burma), Colombia and Sudan.
Towards a UN convention Age UK is a leading member of a coalition working towards the creation of a new United Nations convention on the rights of older people. With the support of Age UK, the coalition has promoted awareness of older people’s rights at the UN in New York and with civil society globally. Through this coalition we have stimulated national-level dialogue on older people’s rights in most regions of the world and will help develop a consensus view on how older people’s rights should be strengthened.
46 Helping up to 5 million people in more than 40 developing countries Social impact statements International
Disasters Emergency Committee £380,000 As a Disasters Emergency Committee (DEC) member, Age UK raises funds in support of DEC appeals and we receive an allocation raised for the relief effort in Pakistan as part of the total funds raised during an appeal to support our response of the DEC’s appeal to the emergency. We participated in the DEC Appeal following the devastating floods in Pakistan. Age UK raised £380,000 for the relief effort in Pakistan as part of the DEC’s appeal that received over £71 million in public donations. Age UK’s programme reached 24,000 households to support water sanitation, nutrition and medical needs of older people affected by the floods. We continue to work in Pakistan and are now in the second phase of establishing older people’s associations. Over the next two years we will be scaling up the level of resources committed to our international work, especially for countries where there are complex political emergencies.
European influencing Age UK remains a key member of AGE Platform Europe, co-ordinating UK members’ activities in this Brussels-based network of 150 European organisations working with and for older people. This year we also stepped up our direct influencing work in Europe, responding to key EU consultations on innovation for active healthy ageing, the EU single market, and collective redress for consumers. In a tribunal hearing supported by Age UK and the Child Poverty Action Group, the Department for Work and Pensions conceded that British nationals living in other European countries can claim disability benefits. Thousands of British people in ill health who were previously denied benefits are now entitled to ‘exportable’ benefits including Disability Living Allowance, Attendance Allowance and Carer’s Allowance. Age UK also hosted a successful lunch briefing at the European Parliament in Brussels. We used the event to launch Grey Matters – A survey of ageism across Europe to a group of MEPs, European Commission officials, NGOs, industry, think-tanks and media. We proposed 20 EU policy recommendations with the survey findings, to combat discrimination and promote employment and active ageing, and will campaign for EU action on these recommendations in the context of the 2012 European Year for Active Ageing and Solidarity between Generations.
48 Social impact statements International
Sharing our good practice abroad We continue to use Age UK’s knowledge and expertise to help organisations overseas to improve their support to older people. This year, Age UK celebrated the approval of two proposals, together worth 480,000 euros, from the European Commission (EC) – one project focuses on elder abuse in the Ukraine, the other on the rights of older people in the Balkans. This is a ringing endorsement of Age UK’s work over many years in former communist countries. We continue to support a new national casework service for British pensioners who experience difficulties in Spain, in partnership with the Foreign & Commonwealth Office and Age Concern España. This partnership and the British community in Spain’s efforts were recently recognised by a Royal Reception with HRH Prince Charles and the Duchess of Cornwall at the British Ambassador’s Residence in Madrid. We are also working with HelpAge International’s network members to improve their access to Age UK’s resources.
49 Social impact statements Research
We will carry out vital research, investing in 06 solutions for later life that will improve ill health and boost quality of life.
Research is central to Age UK’s commitment to look for and support solutions for health problems associated with later life. Successful research into ageing and age-related conditions helps us to recognise and respond to our ageing society through a greater understanding of social and economic impact. Age UK believes that research is key to enabling full and healthy lives as we grow older and we seek to harness the best in UK and international research to deliver tangible benefits for older people and to support the work of Age UK.
50 Social impact statements Research
Research partnerships £500,000 Age UK seeks to work with leading experts and policy-makers to ensure that we harness the best UK and international research funding secured for a programme for chronic on ageing and age-related conditions. obstructive pulmonary In 2010–11 we achieved the following. disease (COPD) patients • We secured £500,000 funding from the Department of Health in partnership with the Met Office to participate in the delivery of a programme of anticipatory care for chronic obstructive pulmonary disease (COPD) patients. • We continued our long-standing partnership with the British Geriatrics Society to co-fund clinical geriatric research through a new joint Clinical Fellowship award. • We participated in the Ministerial Advisory Group for Dementia Research, the findings of which will enable the best research to inform policy and practice for dementia sufferers and their carers. • We reached agreement with the New Dynamics of Ageing, the biggest funding programme of ageing research in the UK, and with the British Society of Gerontology to enable us to translate their research findings into beneficial outcomes for older people. • We agreed a partnership with the World Health Organization to form a knowledge-transfer steering group for their new global initiative, Ageing and Health.
The Disconnected Mind The Disconnected Mind is a major research programme, conducted by Edinburgh University with the support of Age UK, that is examining vascular and cognitive health through the Lothian Birth Cohort. The first phase of this project has now ended and an external peer review concluded that the project has been successful in meeting its objectives in the first two years. As a result, Age UK this year committed to funding the next phase of the project. The aim of the partnership between Age UK and The Disconnected Mind team is to translate the findings into powerful social impact for older people today and for future generations. This programme is being funded by a special fundraising appeal to trusts, foundations and major donors. Phase two of the appeal will be launched in 2011–12.
51 Social impact statements Research
Social research As part of our programme of support for public policy development, we commissioned social research worth over £200,000 and published substantial research findings, including: • commissioning a Social Research Fellowship on flexible working and older workers, awarded to Dr Elaine Alden at the University of Kent, who is examining the effects of the recession on older people • two chapters in the FUTURAGE Road Map • the reports on the Golden Economy (see page 42) and European Social Survey module on ageism.
Research into Ageing We completed a grant round, awarding 13 new Research into Ageing grants, to be carried out over three years beginning in 2010. The total grant value is £971,857 and will support our work and understanding of health and wellbeing for those in later life. These new projects address a range of age-related health problems, including urinary incontinence, falls, dementia and cognitive impairment, age-related loss of vision, wound-healing and cardiovascular disease.
Research for Later Life Conference In September 2010, we held the inaugural Research for Later Life Conference. This conference brought together researchers with an interest in ageing, research users, older people and members of local Age UK committees.
Age UK’s Knowledge Hub We have continued to develop the ways we share our information and research across Age UK and with our partners through our Knowledge Hub. We produced six Evidence Reviews, 12 Research Briefings, a monthly Factsheet (with both UK and international data), three Expert Series publications and the Demographic Chart – the first of a series of statistics on ageing. We launched the ‘For professionals’ area of the Age UK website, which includes access to these reports and documents.
52 Social impact statements Supporting local communities
We will reach into communities in the UK, 07 with and through our partners and volunteers in every area.
Through our partners and volunteers we will ensure that local communities have access to services that take account of local knowledge and expertise. Older people value good-quality services and advice provided by local organisations they trust. We work with our local partners, as we know that together we can achieve more for people in later life. This is what drives us, and is at the heart of the partnerships we are developing.
53 Social impact statements Supporting local communities
Building partnerships Local Age UKs Last year we set a target of achieving partnerships with 100 local Age UKs across England. By year end, we were well on course to have more than 160, which, between them, cover over 90 per cent of the 65+ population in England. Across the country the new name and brand have brought colour and a fresh look to local partners. These partnerships are bringing vital services to local communities, delivered by thousands of local staff and volunteers, and improving the lives of older people throughout the country, from local lunch clubs in Cornwall to home support services in Northumberland, from befriending services in Norfolk to activity roadshows in the Lake District.
National partners Another key objective for the year was the further strengthening of our relations with our national partners – Age Scotland, Age Cymru and Age NI. We worked closely together in developing new models of working to better meet the needs of older people across the UK. The work of Age Cymru has included directly influencing the content of the political party manifestos for the National Assembly elections, working with older people to launch the Wales Senate of Older People, encouraging and supporting 8,000 older people taking part in a range of arts and creative activities during their Gwanwyn festival and developing local partnerships and information structures that will provide services and support to over 1 million people a year. Age NI provided a range of services across Northern Ireland in 2010–11, with strong policy and political impact, developed effective partnerships across the age sector and with local stakeholders and provided a positive impact on the lives of thousands of older people through direct services and programmes.
54 Social impact statements Supporting local communities
Age Scotland grew its membership base by more than 100 new member groups, secured the Age Scotland Helpline for older people, achieved record media coverage on older people issues, engaged older people in regional assemblies, focus work and opinion polls and achieved significant changes in Scottish law and policy to benefit older people. Age UK’s support included strong financial agreements that resulted in a contribution of over £2 million of our funds being transferred to our national partners, towards their continued development of local and national services in each country.
Friends We believe that through building strong local relationships between local Age UKs and other local older people’s groups, people in later life will have improved opportunities and will more easily find the services and support they need. To achieve this we have developed the Friends partnership, which has a strong focus on local relationships and support, and this will be offered to more than 200 local groups and 500 local older people’s forums during 2011. The role of local Age UKs is vital to achieving success with the Friends partnership, and during last year we made grants totalling £262,000 to 160 local Age UKs to help them in their support for local groups in their areas.
Supporting our partners Public spending cuts support The Public Spending Cuts Support Programme aimed to protect the network of older people’s services run by Age UK’s partners and friends in the face of severe public spending cuts. We provided influencing support, grants and services support, working across the Age UK Group. We started with three mini-conferences for Age UKs and Age Concerns and a set of resources for partners to use in challenging cuts decisions, and restructuring their own services and funding. A total of £900,000 has been committed to this work, including over £500,000 in grants to local partners to support them through the transition. Information gathered is helping Age UK to develop a national picture of services affected by the cuts and to increase our evidence about the ways local organisations can adapt, survive and thrive in these challenging times. The cuts support programme will continue into next year.
55 Social impact statements Supporting local communities
Income to local Age Concerns In addition to the wide range of grant projects that have been identified throughout the earlier social impact statements, this year income continued to flow from our social enterprise and fundraising activities to our local partners. This included £11 million generated by local Age UKs and Age Concerns through their work as members of the Trading Alliance, in collaboration with Age Concern Enterprises (now Age UK Enterprises). It also included £1.8 million of the profits from shops, which was shared with the local Age UK or Age Concern where the shop is located. Age UK also paid £683,000 of unrestricted income generated through fundraising campaigns to local partners and set aside £2.4 million for commitments made to fund partners in 2011–12. With respect to the income from the Trading Alliance activities, local organisations also incurred costs, but overall this unrestricted income to local organisations enables many to meet the gap between restricted income and their overall expenditure. It is also used to fund services valued by local communities but for which our partners are not able to attract support from other funders. Age UK works with partners where possible on fundraising activities. Our voluntary income includes donations and gifts, legacies and grants. In 2010, over £1.2 million in legacy income to Age UK was distributed to our local partners in recognition of their strong relationship with the legacy-giver. We work with our local partners to ensure that the wishes of the giver are reflected in the distribution of legacy income. During the year we made available over £600,000 to local Age UKs to support them in adopting the Age UK brand, including through the rebranding of local Age UK shops, offices, centres and vehicles.
56 Social impact statements Supporting local communities
Organisational support Our regionally based staff delivered a range of support to local Age UKs to help to continue our vital work in local communities. A growing trend through the year was the number of organisations actively considering or concluding merger discussions. This was sometimes prompted by local funders, but was more often the result of a strategy to reduce administration costs to enable the delivery of more services. Other support activities included: • regional support programmes of staff training and capacity building • Trustee training days • CEO recruitment and induction • developing work with older prisoners • fundraising development • support in times of challenge and change. Throughout the year we provided timely, relevant and helpful information to our partners.
57 With our partners, we can achieve more for people in later life Public benefit reporting
In setting plans and priorities for areas of work, the Trustees of Age UK have had regard to the guidance from the Charity Commission on the provision of public benefit. In particular, the Trustees consider how planned activities contribute to meeting the objectives set. How Age UK delivers its principal charitable objectives – as set out in its Memorandum and Articles of Association, and which may be summarised as improving the lives of older people – is demonstrated in the social impact statements above. The public benefit arising from Age UK’s work is therefore implicit in the charitable services delivered and assistance given to older people.
59 Social enterprise
Age UK’s social enterprise activities continue to contribute about £30 million to the Group’s charitable purposes of supporting older people, while benefiting the customers (who are mainly older people) receiving these services. Age UK knows that its social enterprises make up an important contribution to its social impact, by delivering needed products and services that provide good value to people in later life, tackling market failure, showing the private sector how it can better provide for consumers, and offering a gateway through our retail shops to enable the public to find out about the services and help that we and our partners provide. Age UK’s social enterprise operates through two principal trading subsidiaries: Age UK Enterprises Limited and Age UK Trading Limited.
Age UK Enterprises Ltd Age UK Enterprises Ltd (Enterprises) is registered under the Financial Services Authority for the regulated part of its business, namely the provision of insurance services. Its objective is to be the preferred provider of affordable tailored products that contribute to an enhanced quality of life for older people, while delivering substantial revenue for the Charity. It is one of a small number of organisations that continue to provide face-to-face services for older people across the country. The Enterprise group of companies is made up of Age UK Enterprises Ltd, Intune Group and Aid-Call Ltd. During the year, Enterprises won three awards: • the Social Enterprise Mark for trading in a way that benefits society and the environment • the British Insurance Customer Care Award jointly with its partner, Ageas Insurance Ltd • the Financial World Excellence in Customer Service Award at the Financial World Innovation Awards.
60 Enterprises continues with its goal of becoming an expert commentator on products for older people, with interviews taking place with national press and television media. Which? magazine offered Enterprises the opportunity to engage with them for the first time ever. Enterprises’ motor insurance is now on the Which? recommended provider list since January 2011. The launch of Silver RPI has been an outstanding success in terms of the amount of media coverage generated. Silver RPI is a comprehensive measure of how inflation affects those at five-year age bands over 55. See www.ageuk.org.uk/silver-rpi for full details. All the products have been designed to meet either market failure or provide value for money for comprehensive cover. These products include the following. • Home, travel and car insurance with its partner Ageas Insurance Ltd, enabling older people to benefit from cover that might not otherwise be available in the market. During 2010–11, Enterprises sold about 470,000 (460,000 in 2009–10) insurance policies. • Energy services to 450,000 (420,000 in 2009–10) customers through Age UK Energy in collaboration with E.ON, providing a tariff that minimises fluctuations in price and provides for additional cold- weather payments. During the year, Enterprises, together with the Charity, renegotiated a further ten-year contract with E.ON to provide specific Age UK tariffs with additional cold-weather payments and to enable E.ON to make available significant funds through an Engage Fund, to help more vulnerable people with energy efficiency measures. • Funeral plans in collaboration with Dignity, selling about 21,000 (16,500 in 2009–10) plans in 2010–11. • The management of the largest social lottery in the UK, with an average of 125,000 (109,000 in 2009–10) customers, as well as lotteries and raffles carried out within the Charity.
61 Social enterprise
• The provision of personal alarm systems to more than 45,000 customers through its subsidiary Aid-Call Ltd. • The introduction at the end of 2010–11 of two new products, Annuities and Equity Release, which are generating significant interest. Enterprises successfully completed the sale of its healthcare business to Tynetec in July 2010. This business did not fit with the aims and wider objectives of Age UK. Continuity of care to the end customer has been maintained throughout the sale process. Intune Group also disposed of its 50 per cent share in SeniorLink Eldercare as part of the rationalisation of its alarms business, in order to remove the duplication of service offerings. There are now about 100 Age UKs in England and Wales that work collaboratively with Enterprises to sell its products and services. These Trading Alliance Members (TAMs) provide a valuable face-to-face service for older people in their local area, enabling those not able to use the phone or the internet to access such products. All the TAMs sign a Trading Alliance Agreement to formalise the working relationship and this agreement is regularly reviewed. Under the current agreement, relevant net profits are shared 55:45 between the TAMs and Enterprises. Enterprises also has joint venture businesses with Age Scotland and Age Northern Ireland. During the year, Enterprises restructured its sales and training teams in order to enhance sales by delivering more focused coaching, training and support to staff and volunteers in the TAM offices. Enterprises further developed the Worksmart system to streamline the training process, while still delivering quality online learning, in addition to face-to-face coaching and training. A total of 531 staff and volunteers were trained across more than 200 TAM offices. Age UK brand training was delivered to all suppliers operating call centres on Enterprises’ behalf.
62 Social enterprise
During 2010–11, TAMs received over £9.5 million (£8 million in 2009–10) of income in commission from sales made by them and from their territory, excluding joint ventures. Turnover from all Enterprises activities amounted to £49 million (£52.1 million in 2009–10).
Turnover from Enterprises activities: total income split
Insurance (£20.42m) Lottery (£6.43m) Alarms (£7.34m) Funerals (£8.47m) Energy (£4.1m) Raffles (£2.27m)
Overall, excluding raffles administered by the Charity, the business revenue was flat at £46.7 million (£46.8 million in 2009–10), reflecting the impact of rebranding and the development of a new strategy for the Enterprises business, and it was recognised that this would potentially keep growth flat in the first two years. The total surplus for the year was £22.6 million (£21.1 million in 2009–10) before gift aid payments to Age UK and commission payments to TAMs. Excluding raffles, the surplus of £21.6 million (£19.8 million in 2009–10) represented an increase by 9 per cent, thanks to the impact of the strong focus on overhead reduction, particularly in marketing spend.
63 Social enterprise
Age UK Enterprises 2011–12 objectives • Continue to deliver value-for-money tailored products to our customers to support the overall strategy of Age UK. • Continue to provide access to our customers through their preferred channel of choice (including face to face) by understanding what our customers want from us and exceeding their expectations every time. • Be the first-choice brand for all people in later life. • Continue to deliver substantial, sustainable revenue for Age UK. • Continue to support the overall ambitions of Age UK and its partners while ensuring that strategies are in place to deliver the future ambitions of the Enterprise businesses. • Deliver, through our people, a single culture, vision, mission and business plan. • Manage external partnerships, suppliers and internal resources in order to support policy and strategy and effective operation of processes to support the current and future needs of the organisation. • Act as a gateway to Age UK and its partners, allowing access via its contact centres and information and advice lines to its charitable and commercial activities.
64 Social enterprise
Age UK Trading Limited Age UK Trading Limited manages Age UK’s retail, affinity/licensing and training operations. As at 31 March 2011, Age UK Trading provided staff and management for 459 high-street shops (owned by Age UK, Age NI and Age Scotland) that sell donated goods (accounted for through the Charity) and bought-in goods. Age UK Trading also generates income from affinity or agency sales of products, such as stairlifts, chairs and bathroom adaptations, as well as commission from the sale and marketing of other third- party products, including daily living aids. Through its profit-share arrangement, it also contributes funds directly to local Age UKs. In addition, Age UK Trading manages Age UK Training, which provides training for people of all ages to work with and for older people, chiefly via government-funded routes and commercial training courses. Age UK Trading benefits from the support of more than 7,300 (7,000 in 2009–10) volunteers. During the year, Age UK Trading continued the process of consolidating the benefits of the merger through rebranding and improved management and cost control. Within the retail business this process included: the review and extension of opening hours, the growth of the use of gift aid, the introduction of improved management information systems (including in-store point of sale) and the closure of 31 unprofitable shops. Retail sales were relatively flat and only slightly higher than the previous year at £41.9 million for donated goods (£41.8 million in 2009–10) and £2.8 million for bought-in goods (£2.5 million in 2009–10). Retail profits of £5.7 million (£6.6 million in 2009–10) reflect the impact of the release of provisions in the prior year – discounting this, profits rose by £0.4 million.
65 Social enterprise
Age UK Trading won a national award for its recycling work and commenced a staff development programme to support group awareness and individual development. The profit share to partners has increased to £2 million (£1.6 million in 2009–10) and partners can now promote their activities through the information hubs in all shops. The retail teams fully supported Age UK’s fundraising initiative, Bobble Day, organising over 100 events and selling more than 30,000 bobbles. A new shop format was introduced in ten stores, which both created an enhanced retail environment and actively promoted the charitable and commercial activities of all parts of Age UK and of local partners. Plans are in place to roll out the new format more widely. A number of other partners have also shared in this success by adopting this model for their own independent shops. Activity has commenced to support partners further, through releasing retail space where profitability is not affected, to enable our partners to promote their information and advice and commercial activity through our shops. Affinity income has remained relatively flat. Affinity products can now be accessed through the media, internet, shops and TAMs. Stairlifts continue to be the primary offer, supported by bathing solutions, chairs and other independent-living products. The extensive marketing of these products also supports Age UK’s charitable activities because over 20 per cent of all calls received are for information and advice. Mystery shopping research was run independently and ranked Age UK as number one in stairlift sales, with customer satisfaction ranking at above 90 per cent. The introduction of daily living aids as a retail offer has enabled Age UK Trading to extend brand reach via other retailers. Daily living aids have been promoted through QVC (a TV shopping channel) and are now on sale in Halfords and Boots stores across the UK and will shortly be available through Age UK Trading’s own retail outlets.
66 Social enterprise
The Group carries out training both within the Charity, where training is specifically related to older people, and within Age UK Trading. The total income and profit was as follows.
Income Profit £m 2010–11 2009–10 2010–11 2009–10 Charity* 4.2 3.9 0.2 (0.1) Age UK Trading 5.2 4.7 0.2 0.1 Total training 9.4 8.6 0.4 0.0
(*Included within Incoming resources from charitable activities: Have Fun and Stay Well)
The Training operation turnover grew to £5.2 million (£4.7 million in 2009–10) and profit has grown to £0.2 million (£0.1 million in 2009–10). A total of 136 open short courses were run through training centres, which were attended by 1,720 delegates. Age UK Trading had another successful year delivering the Apprenticeship and Train to Gain programmes, engaging 2,191 learners, with 1,024 achieving a qualification in 2009–10. The division was nominated for a national award for its work. Three loss-making training centres were closed. Commercial training activity continued to grow. The Others’ Eyes Programme was adopted by a major retailer to enable their staff teams to fully understand the impact of later life on both the work force and consumers, enabling a greater focus on how they best operate in this arena. New training activity includes a partnership with Age UK Northumberland, which is now delivering government-funded contracts on Age UK’s behalf.
67 Social enterprise
Overall income from Trading, including both the sale of donated goods, which are accounted for in the Charity, and the sales of bought-in goods, together with income from training and work and other activities, amounted to £52.9 million (£51.9 million in 2009–10).
Turnover from Trading activities: total income split
Retail donated goods (£41.93m) Training and work (£5.23m) Retail bought-in goods (£2.79m) Corporate sponsorship and events (£2.05m) Retail affinity income (£0.8m) Other (£0.11m)
68 Social enterprise
Age UK Trading 2011–12 objectives • Drive profit growth to match market best performance. • Support the overall ambitions of Age UK and its partners while ensuring that strategies are in place to deliver the future ambitions of the retail, affinity and training businesses. • Develop, through its people, high-performance teams who have the skills and competencies to drive the business forward, ensuring that they are engaged in the work and ambitions of Age UK locally, nationally and internationally, and who feel rewarded and recognised. • Further develop the retail model that delivers profitable expectation. • Act as a gateway to Age UK and its partners, allowing access via its high-street presence to its charitable and commercial activities, as well as providing a distinctive retail experience. • Extend Age UK Trading’s affinity and licensing programmes with a range of quality products to help keep people independent and live a better later life; to become sector leaders, promoting solutions that many people face in later life and helping to change the sector for the better, and to extend the Age UK brand and reach. • Provide effective support to partners via the distribution of funds through a profit-share arrangement and/or the local shop supporters’ scheme and to share in affinity success, as well as sharing Age UK Trading’s expertise and offering the promotion of local activity and services. • Develop Age UK Training into a flagship for Age UK, focusing its activities in providing training and support for later life and ensuring that it is less reliant on government funding through a more commercial approach, and hence less vulnerable to cuts in public expenditure.
69 Planning for 2011–12 and beyond
The business plan for the Age UK Group for 2011–12 reaffirms our key objectives to: • achieve our charitable purpose, to improve the quality of life for older people by steadily increasing our charitable expenditure and ensuring value for money in terms of the social impact created • invest in our long-term future, taking new directions to guarantee sustainable income streams • transform our organisation, systems and culture to maximise performance across the Age UK Group.
The Age UK Group – working together to improve later life The shared purpose of Age UK’s charitable and commercial activities is to improve later life. Together, the Charity and its trading subsidiaries aim to make a difference in the areas of life that older people tell us are most important to them. These include the areas of Money Matters, Health & Wellbeing, Home & Care, Travel & Lifestyle, and Work & Learning. In 2011–12 Age UK will do the following.
Money matters • Help older people, together with our partners, to identify £120 million in benefits for older people to claim. • Campaign to end pensioner poverty and maximise income in retirement. • Extend Age UK Advice to cover debt advice. • Let people know how we can help through our Let’s Talk Money campaign, which will reach an audience of over 1 million. • Ensure that our information is available in our shops and that we direct people to local services for assistance.
70 Health & wellbeing • Fund research into age-related conditions. • Publish new information guides to help carers and people with dementia. • Carry out training, publicity and practical action to prevent falls. • Develop work with local Age UKs to tackle isolation and loneliness and promote health, independence and wellbeing in later life. • Help more than 40,000 people to improve their physical and mental wellbeing through Fit as a Fiddle.
Home & care • Help more than 15,000 people through our HandyVan schemes. • Help more than 50,000 older people through our Spread the Warmth grant programmes. • Campaign to protect existing care services and for a better system for the future. • Provide 44,000 personal alarms through Age UK Personal Alarms to give people in later life and their families peace of mind in their homes.* • Provide quality training through Age UK Training and increase our market share in health and social care training by 1 per cent.*
Travel & lifestyle • Help 10,000 people to participate in social and leisure activities through Age UK friendship centres. • Encourage the private sector to meet the needs of people in later life. • Through Myfriends Online week, encourage older people to benefit from the social side of the internet. • Provide 99,000 travel insurance policies through Ageas Insurance Ltd to people in later life, irrespective of age.*
*Social enterprise objective rather than charitable objective.
71 Planning for 2011–12 and beyond
Work & learning • Involve 15,000 older people in our Connect with IT activities and training, including supporting 1,000 organisations to provide IT taster courses and awareness through Itea and Biscuits. • Recruit 20,000 Digital Champions. • With our partners, enhance the experience of the 70,000 people who volunteer their time with us. • Promote age equality and opportunities to work and learn. • Through our training programmes, ensure that more than 2,400 people are helped to gain or progress into a work placement or job.*
Around the world • Reach up to 2 million people in developing countries through development projects and emergency relief programmes. • Influence the UK government and other NGOs to respond better to the needs of older people in their international development and humanitarian work. • Strengthen the global age sector to develop greater capacity for reaching and influencing for, and with, older people.
Closer to home • Provide £7.7 million in grant and development funding to local Age UKs, friends and forums to support their organisations and their service development and provision. • Provide over £1.25 million funding plus practical support to Age Cymru, Age NI and Age Scotland to support their organisations and their service development and provision. • Roll out an integrated national and local telephone Information and Advice service with 50 local Age UKs. • Bring more than 200 smaller groups and 400 forums into a new relationship with Age UK and its brand partners in England. • Support local Age UKs and Age Concerns and other local organisations to campaign against local cuts that harm the most vulnerable older people.
*Social enterprise objective rather than charitable objective.
72 Financial statement
Financial review
This review covers the second year of operations of the Age UK Group, in which we report a net expenditure of £1.2 million against a net income of £1.3 million for the previous year. After including gains on investment assets and actuarial gains on defined-benefit pension schemes, the net movement of funds was an increase of £7.4 million (increase of £3 million in 2009–10).
73 Financial statement
Incoming resources Overall total incoming resources were £4.3 million less than the prior year at £156.4 million (£160.7 million in 2009–10). Age UK’s main income streams are voluntary income £46.9 million (£48.3 million in 2009–10), retail £44.7 million (£44.3 million in 2009–10) and insurance and other commission £33.8 million (£33.5 million in 2009–10). There are also other trading activities, which comprise raffles and lotteries, personal alarms, training activities and corporate sponsorship and fundraising events. These activities generated an income of £23.3 million (£26.2 million in 2009–10).
Income by source
Voluntary income (£46.87m) Retail (£44.73m) Insurance and other commissions (£33.82m) Other trading (£23.33m) Income from charitable activities (£6.72m) Other (£0.9m)
Voluntary income of £46.9 million was a reduction of £1.4 million from the previous year. Donations increased by £1 million reflecting the impact of a £3.7 million increase in donations for international emergencies. Legacies fell by £0.7 million and grants income also fell by £1.7 million owing to projects ending. Costs of fundraising also reduced, reflecting a continued and planned slow-down in activity as the new brand and fundraising team were established.
74 Financial statement
Income from activities for generating funds, referred to as Age UK’s social enterprise activities, reduced by £2.1 million from the previous year (£101.9 million compared to £104 million in 2009–10). In the year, there was an increase in income totalling £1.3 million from insurance and other commission, retail and training activities, corporate sponsorship, energy and funeral plans. These increases were offset by reductions in income from raffles and lotteries by £2.2 million and also a £1.2 million income reduction from alarm sales owing to disposal of part of the alarm business. Net contribution has remained the same as the prior year at £69.4 million, as set out below.
2010–11 2009–10 £m £m
Voluntary income 46.9 48.3 Cost of generating voluntary income (7.8) (8.5) Net contribution from voluntary income 39.1 39.8 Income from Social Enterprises 101.9 104.0 Cost of Social Enterprises activities (71.6) (74.4) Net contribution from 30.3 29.6 Social Enterprises activities Net contribution 69.4 69.4
Details of trading and commercial activities are set out under the ‘Social enterprise’ section (see page 60).
75 Financial statement
Charitable activities Charitable expenditure amounted to £72.5 million (£68.1 million in 2009–10) – an increase of £4.4 million. Grants given rose by £2.4 million to £24.2 million (£21.8 million in 2009–10). Grants to international projects have increased by £1.6 million. These were mainly for relief activities in Haiti and Pakistan. Other grants included a one-off additional grant of £1.4 million to assist local partners facing current challenging circumstances. These grants’ increases have been partially offset, as some grants have ceased as a result of projects ending. Direct charitable activities have also increased by £2.5 million and allocated support costs have stayed in line with last year’s levels.
Charitable expenditure (£72.5 million)
Information and advice (11%) Independence at home (6%) Have fun and stay well (16%) Campaign for change and public affairs (11%) International (13%) Research (3%) Supporting local communities (40%)
Details of the services provided within these seven charitable objectives are set out in the ‘Social impact statements’ on pages 22 to 57. In addition, income generated from charitable activities that support charitable spend reduced slightly to £6.7 million (£7.3 million in 2009–10) mainly as a result of cuts in public expenditure.
76 Financial statement
Total charitable expenditure in the year of £72.5 million (68.1 million in 2009–10) is higher than total voluntary income of £46.9 million (£48.3 million in 2009–10), showing that all money received through donations in both years has been spent directly on charitable activities.
All voluntary income goes to front-line charitable activities
Voluntary income Charitable activities – direct costs Charitable activities – grants Charitable activities – support costs
£100m
£80m
£60m
£40m
£20m
£0m 2011 2010
Integration costs and investments for the future One-off integration costs of £5.5 million (£8.1 million in 2009–10) take into account costs of £2.3 million in relation to the development of Age UK, including new websites and £1.8 million on property. Age UK has closed the four London offices inherited from the merger and relocated to a new central hub. This property consolidation is expected to save £1 million per annum in future years. The reduction in headcount has continued from the previous year and there were further redundancy costs of £0.7 million. Since the merger on 1 April 2009, headcount has reduced by a total of 671 (395 in 2009–10 and a further 276 in 2010–11), generating a salary saving of £11.4 million per annum (£6.6 million in 2009–10 and a further £4.8 million in 2010–11).
77 Financial statement
This saving, together with other efficiency savings, has enabled Age UK to finance its integration costs and investments in group activities, such as: • investment in, and launch of, Age UK • the rebranding of all FSA-regulated products and more than 400 retail shops • the creation of new fundraising activities under the new Age UK name • rationalising the legacy charities’ multiple internet sites through rebuilding an integrated single-web presence that will be used by Age UK and its local partners • additional support for our local partners.
Balance sheet Owing mainly to a reduction of £8.6 million in defined pensions schemes liability, explained below, total balance sheet funds increased by 59 per cent, from £12.6 million to £20.1 million. Fixed assets have increased by £4.9 million. This increase is mainly due to additions of £3.8 million in relation to Tavis House, Age UK’s new central hub. The cost of these additions is being financed by future rent free periods. Net current assets have reduced by £5.4 million, to a net liability of £0.5 million, reflecting the fixed-asset additions. Short-term investments of £1.2 million have been liquidated and creditors due within one year have increased by £3.7 million. This increase is mainly owing to increased levels of trade creditors. Provisions have also increased by £2.1 million owing to future grant commitments and additional one-off property costs resulting from the closure of old London offices. There was a net cash inflow from operating activities of £4.5 million reflecting creditors and provisions increases in the year. In 2009–10 there was a net cash outflow from operating activities as significant cash was expended in settling creditors, which were unusually high, from the legacy charities.
78 Financial statement
Pension deficit The defined pension schemes’ deficits of £15.9 million (£24.5 million in 2009–10) is explained in detail in note 21 of the financial statements (see page 112) and represents the deficits of the two final salary schemes of Age Concern England (ACRBS) and Help the Aged (HTAFSS). Both schemes are closed to new entrants and future accruals. As at 31 March 2011, the deficit of the ACRBS scheme was £4.9 million (£9.1 million in 2009–10) and the HTAFSS scheme was £11.0 million (£15.2 million in 2009–10). Both schemes are valued and reported in accordance with FRS17 and advised by respective scheme actuaries. The schemes both showed an overall reduction in deficits as a result of a combination of: • the deficit reduction contributions of £2.4 million (£2.5 million 2009–10) paid into both schemes during the year • higher than expected returns achieved on the ACRBS invested assets • the favourable impact from changes to the assumptions adopted to value both schemes’ liabilities, principally: – the introduction and use of CPI alongside RPI in calculating future revaluation for deferred pensions or payment increases, following the Government’s announcement relating to statutory pension increases – the elimination of the 1 per cent mortality underpin that is considered an unnecessary inclusion in arriving at a ‘best estimate’ valuation as required under FRS17, as reported in note 21.
79 Financial statement
Reserves policy The Trustees of Age UK have a liquidity-based approach to reserves, which requires the Charity to hold reserves in cash and realisable investments (total liquid investments) equivalent to the sum of: • 15 per cent of budgeted general income net of costs of generating funds • 15 per cent of budgeted general expenditure other than that spent on income generation • restricted reserves as at the year end • the capital budget for the forthcoming year • a working cash flow balance of £5 million (£5 million in 2009–10) to take account of uneven cash flows during the year. This figure was calculated as £26.3 million (£26.7 million in 2009–10) and compares to actual liquid investments (excluding investment properties) of £32.2 million at 31 March 2011 (£31.8 million in 2009–10). This equates to cover of 123 per cent (115 per cent in 2009–10), which the Trustees consider satisfactory and that reserves levels are sufficient to enable the group to continue to operate on a going concern basis. Excluding restricted reserves, general liquid investments at 31 March 2011 amounted to £29.1 million (£29.9 million in 2009–10) shown in the table below.
Asset class 2010–11 2009–10 £m £m Unlisted investments 3.4 2.5 Listed investments 21.4 21.1 Short-term deposits – 1.2 Cash at bank and in hand 7.4 7.0 Total liquid investments 32.2 31.8 Less: restricted reserves (3.1) (1.9) General liquid investments 29.1 29.9
80 Financial statement
Investment policy The investment principles adopted by the Trustees are: • to maximise real returns over time, subject to holding a diversified portfolio in order to reduce risk • to hold at least £2 million in cash in order to provide flexibility. At 31 March 2011, investments were held by Sarasin & Partners, which took over as sole investment manager during the year. Previously investments were managed by Blackrock and Sarasin, being the fund managers used by the two legacy charities. As at 31 March 2011, Age UK holds two investment portfolios with Sarasin: one in long-term investments with a market value of £22.7 million and the other in short-term investments with a market value of £2.1 million. The largest holding at 31 March 2011 was an investment in the Sarasin Charity – Thematic UK Equity Fund, which accounted for 34 per cent of the long-term investment portfolio. This is a diversified UK equity fund in which Age UK invests the UK equity component of the portfolio. The fund seeks to beat the return from the FTSE All Share 5 per cent Capped Index. The table opposite shows the asset allocation and benchmark performance of the long-term investment fund. The short-term fund is invested in defensive and liquid assets, primarily bonds and cash deposits. The short-term fund made a return of 2.1 per cent for the year compared to the return on cash of 0.5 per cent. Age UK also holds endowed funds with a market value as at 31 March of £1.8 million (£1.7 million in 2009–10). These funds are managed by J. P. Morgan. The asset allocation and benchmark performance of these endowed funds is shown opposite. Age UK also holds 14 properties valued at £2.6 million (£2.8 million in 2010) as investments. These are residential properties originally donated under the Gifted Housing scheme or left as legacies. The lower gain on investments in 2010–11 of £1.3 million (£7.5 million in 2009–10) reported in the consolidated statement of financial activities reflects the modest increase in the FTSE All Share indices during the year. Dividend income showed a reduction from £0.7 million in 2009–2010 to £0.5 million in 2010–2011 and interest income reduced slightly, reflecting continued low interest rates.
81 Asset allocation and benchmark performance of the long-term investment fund
Total return Return Comparison against Asset allocation Asset class (12 months to 31 March 2011) per index benchmark at 31 March 2011 % % % %
Fixed interest 5.6 5.2 0.4 14.3
UK equities 15.1 9.6 5.5 34.0
Global equities 8.8 8.2 0.6 41.5
Hedge funds* n/a 3.9 n/a 1.9
Private equities 11.3 8.7 2.6 0.5
Commodities 18.8 24.4 (5.6) 1.5
Liquid assets ** n/a n/a n/a 6.3
Portfolio benchmarks: FTSE All Share 5 per cent Capped, FTSE Gilts All Stocks, MSCI World & LIBID 7 Day. *Hedge funds have been added to the investment portfolio in the latter part of the year. Therefore, there is no total return reported for the 12 months to end of March 2011. ** Liquid asset – Sarasin does not report the total return on liquid assets separately.
Asset allocation and benchmark performance of endowed funds
Total return Return Comparison against Asset allocation Asset class (12 months to 31 March 2011) per index benchmark at 31 March 2011 % % % %
Bond fund 5.3 5.16 0.14 61.4
UK equity fund 8.26 8.75 (0.5) 38.6
Portfolio benchmark: FTSE All Share, FTSE Gilts
82 Corporate governance
Age UK was formed by the merger of Age Concern England and Help the Aged on 1 April 2009. Age UK is a charity constituted as a company limited by guarantee (registered charity number 1128267 and registered company number 6825798) and therefore subject to charity, trust and company law and governed by a Memorandum and Articles of Association, which sets out its charitable objectives in the following terms: • preventing or relieving the poverty of older people • advancing education • preventing or relieving sickness, disease or suffering in older people • promoting equality and diversity and the human rights of older people • assisting older people in need by reason of ill health, disability, financial hardship, social exclusion or other disadvantage. Age UK is governed by a Board of Trustees, which comprises 15 members and meets eight times a year. The list of Trustees and directors is shown on page 121. Trustees are elected or appointed for an initial term of two years or three years, with a maximum period of service of two further terms of three years. There is a role description for all Trustees and the Remunerations and Nominations Committee makes recommendations for the appointment of new Trustees to the Board. Four Trustees are elected by the members of Age Concern, the federation. Three Trustees are appointed by the Boards of Age Scotland, Age Cymru and Age NI respectively. All candidates for these positions must be able to demonstrate that they can fulfil the requirements of the role description. The process for recruiting new Trustees is based on an evaluation of the balance of diverse skills and experience needed to govern the Charity in its breadth. Newly appointed Trustees receive a letter of appointment, an induction programme and ongoing updates during their term. Trustees are involved in appraisals with the Chairman, which enable the identification of any training needs. Where such needs are identified, appropriate training is provided.
83 Corporate governance
Age UK’s formally constituted sub-committees are as follows:
The Audit and Risk Committee reviews the audited annual financial statements of the Charity and recommends them to the Board. It also reviews the Charity’s annual statement on internal control and risk management and recommends it to the Board. It reviews reports from the internal and external auditors and monitors management actions to implement recommendations made in audit reports. It determines the frequency and process of tendering both external and internal audit services and considers their appointment, fees and independence and objectivity. The Chief Executive, the Group Finance Director, the Charity’s internal auditors and the external auditors attend meetings of the Audit and Risk Committee, with other directors attending as required.
The Remuneration and Nominations Committee reviews pension, employment and remuneration policies, determines the salary and appointment of the Chief Executive and the executive directors, and approves the annual employee percentage salary increase. It leads the process of trustee appointments, including the appointment of the Chairman of the Board of Trustees. The Chief Executive attends meetings of the Committee with other directors attending as required.
The Partners Sub-Committee was established in January 2011 to take decisions and enter into agreements on behalf of Age UK in respect of partner relations with Age UKs, Friends, Forums, Age Cymru, Age NI and Age Scotland and keep the Board of Trustees informed. Throughout the year, the Board was also advised by the following Committees.
The Commercial Strategy Board oversees the commercial side of the organisation, particularly those aspects that effectively sit outside the charitable environment for which the rest of the Trustees have oversight. The Chief Executive attends meetings of the Committee, with other directors attending as required. In May 2011, the Board of Trustees agreed to the creation of a Strategic Finance Committee and agreed that it would assume the responsibilities of the Commercial Strategy Board within its broader and amended Terms of Reference. The Strategic Finance Committee is a formally constituted sub-committee of the Board.
84 Corporate governance
The Fundraising Board considers and focuses on the Charity’s fundraising strategy and capabilities and acts as a sub-group of the main Board. The Chief Executive attends meetings of the Committee, with other directors attending as required.
The Age UK–HelpAge International Joint Board Committee approves and periodically reviews the Charity’s strategy for supporting older people overseas, ensuring its appropriateness alongside the work of other agencies and its consistency with the Charity’s strategy as a whole. It oversees and monitors the delivery of the international work programme and ensures that value for money and financial probity is achieved in all funded programmes of international work and operating overheads. The Chief Executive attends meetings of the Committee, with other directors attending as required. In 2011–12, the Age UK Board of Trustees will be reviewing Age UK’s governance arrangements.
Age UK and its partners During the year, Age UK continued to be the national member of Age Concern, the federation, an association of more than 300 independent charities in England operating locally under the Age UK or the Age Concern name and brand. In March 2011, the federation was re-formed as the Age England Association to which Age UK is a subscribing member. Age UK also works closely with Age Cymru, Age NI and Age Scotland to co-ordinate work at a national level in the UK.
Risk and internal control The Trustees have overall responsibility for ensuring that the Charity has an appropriate system of controls, financial and otherwise, across the entire organisation to provide reasonable assurance that: • its assets are safeguarded against unauthorised use or disposition • proper records are maintained and that financial information used within the Charity or for publication is reliable • the Charity complies with relevant laws and regulations.
85 Corporate governance
The Trustees have in place a risk-management process to assess risks and implement risk-management strategies. This process includes a review by Trustees, directors and other charity officers. The process identifies the types of risk that the Charity faces, which are recorded in a Corporate Risk Register, prioritises them in terms of likelihood of occurrence and potential impact, and identifies the means of mitigating these risks. Risk management is embedded in the day-to-day processes of the Charity and its trading subsidiaries and this has continued to evolve over the year. At the end of the first year of operation, the Audit and Risk Committee, working closely with its internal and external auditors, focused on assuring itself that all key controls were in place in the new organisation. The Committee considers that the Group is increasingly able to focus on taking a risk-based approach to the strategic challenges it faces. The Trustees consider that the principal risks and uncertainties that face Age UK during 2011–12 include: • increasing income from all activities, particularly fundraising, where there is a need to increase the number of regular givers • maintaining, controlling and protecting the confidentiality of customer and beneficiary data and information • failure of service delivery, including their risk of harm to vulnerable adults • managing the relationships with brand partners and addressing areas in which the new brand presence needs development • ineffective governance and risk management in the Charity, subsidiaries and other entities in which Age UK has a significant interest. There have been no serious incidents reported to the Charity Commission.
86 Corporate governance
Statement of responsibilities of the Trustees of Age UK in respect of the Trustees’ Annual Report and the financial statements The Trustees are responsible for preparing the Trustees’ 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. Under that law they are required to prepare the group and parent company financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice). 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 charitable company and of the group’s excess of income over expenditure for that period. In preparing each of the group and charitable company financial statements, the Trustees are required to: • select suitable accounting policies and then apply them consistently • make judgements and 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 • prepare the financial statements on the going-concern basis, unless it is inappropriate to presume that the group and the charitable company will continue its activities. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
87 Corporate governance
Disclosure of information to auditor Each of the persons who is a trustee at the date of approval of this report confirms that, so far as each trustee is aware, there is no relevant audit information of which the Charity’s auditor are unaware, and the Trustees have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the Charity’s auditor are aware of that information.
Auditor In accordance with section 485 of the Companies Act 2006, resolutions proposing the reappointment of KPMG LLP as auditor of Age UK and authorising the Board to set their remuneration will be put to the members at the annual general meeting.
Age UK Grant-making Policy Through its grant-giving programme Age UK supports local partners in delivering key services and developing them as sustainable organisations. It also supports local, national and international organisations to further its strategic objectives in working to improve the lives of older people. Age UK’s grant programme is funded by government, external trusts and foundations and from its own income. Each application received for grant aid is rigorously assessed by an Allocation Committee from a financial and project activity perspective. All grant recipients are required to submit progress reports (normally quarterly or as defined by the specific programme). Most grants are for less than 12 months; where for a longer period of time, a full mid-term review is undertaken. Age UK has produced an annual grants review, which is available from Age UK.
88 Corporate governance
Equalities, diversity and disability Equalities, diversity and disability are areas of great importance to Age UK. It is fundamental that people are treated fairly, with respect and dignity. Age UK will not tolerate any discrimination, victimisation or harassment on the grounds of age, disability, gender or gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, or sexual orientation. Age UK will strive to take all practical steps to prevent discrimination (on any basis) and promote equality during the course of its work, providing a supportive, challenging and empowering environment for all. We will monitor the conduct of actions taken under the framework of all our policies, including recruitment, in order to identify inequalities and formulate plans to address them, ensuring fairness of treatment at work under the 2010 Equality Act and our cultural values. Age UK recognises that every person has different needs, preferences and abilities and we must reflect this diversity in everything we do. This includes making our services and products inclusive and accessible to older people from all sections of the community and attracting and retaining a diverse workforce. By positively valuing these differences and harnessing different life experiences, attributes and contributions, Age UK will be a better place to work.
89 Environment Age UK is a professional and environmentally conscious organisation that acknowledges the impact that its operations may potentially have on the environment. As part of our commitment to maintaining the highest levels of environmental management, it is our intention to work towards environmental best practice. Our clear objective is to minimise any impact on the environment by: • preventing pollution, reducing waste and ensuring that wherever practicable, measures are taken to protect and preserve natural habitats, flora and fauna • considering the effect that our operations may have on the local and wider community • taking action to eliminate or reduce, as far as practicable, any potentially adverse environmental impacts • promoting environmental awareness among our suppliers, contractors and partners by implementing operational procedures • seeking to work in partnership with the community by behaving in a considerate and socially responsible manner • ensuring effective and expedient incident control, investigation and reporting. Age UK will comply fully with the duties placed upon it within the requirements of statutory legislation, while at all times complying with, as a matter of best practice, the requirements and duties set out within Approved Guidance as issued by the Environment Agency and other organisations. We will take all practical steps to ensure that potential hazards and risks to the environment are identified and that suitable and effective preventive and control measures are implemented. Approved by the Board and signed by its behalf on 24/11/2011 by:
Dianne Jeffrey CBE DL Chairman
90
Independent auditor’s report to the members of Age UK
We have audited the financial statements of Age UK for the year ended 31 March 2011 set out on pages 94 to 120. The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice). This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 and its members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees’ Responsibilities set out on page 87, 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. Our responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm
92 Opinion on financial statements In our opinion the financial statements: • give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 March 2011 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended • have been properly prepared in accordance with UK Generally Accepted Accounting Practice • have been prepared in accordance with the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: • the charitable company has not kept adequate accounting records or returns adequate for our audit have not been received from branches not visited by us; or • the charitable company financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit.
MG Fallon (Senior Statutory Auditor) 24 November 2011 for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 1 Forest Gate, Brighton Road, Crawley RH11 9PT
93 Consolidated statement of financial activities For the year ended 31 March 2011
Unrestricted Restricted & 2011 2010 Endowed Total Total Note £’000 £’000 £’000 £’000 Incoming resources Incoming resources from generated funds Voluntary income 2 29,956 16,916 46,872 48,294
Activities for generating funds Retail 44,728 – 44,728 44,325 Insurance and other commissions 33,794 28 33,822 33,484 Other trading income 3a 22,675 660 23,335 26,189 Sale of services by joint venture 874 - 874 2,619 Less share of joint ventures' turnover (874) - (874) (2,619) 101,197 688 101,885 103,998 Investment income 4 569 12 581 899
Incoming resources from charitable activities 5 6,137 585 6,722 7,276
Other incoming resources Gain on disposal of fixed assets 315 8 323 198
Total incoming resources 138,174 18,209 156,383 160,665
Resources expended Costs of generating funds Costs of generating voluntary income 6 (7,419) (352) (7,771) (8,506) Activities for generating funds Retail (38,989) (9) (38,998) (37,743) Insurance and other commissions (15,766) (54) (15,820) (14,671) Other trading costs 3b (16,679) (71) (16,750) (22,020) (71,434) (134) (71,568) (74,434) Investment management costs (67) - (67) (107)
Total costs of generating funds (78,920) (486) (79,406) (83,047)
Charitable activities Information and advice (7,168) (919) (8,087) (8,572) Independent at home (2,526) (1,613) (4,139) (5,611) Have fun and stay well (6,432) (4,858) (11,290) (11,519) Campaign for change and public affairs (7,535) (318) (7,853) (9,449) International (1,740) (7,705) (9,445) (7,350) Research (1,366) (1,102) (2,468) (2,134) Supporting local communities (26,531) (2,701) (29,232) (23,428) 6 (53,298) (19,216) (72,514) (68,063) Governance costs 7 (652) - (652) (713) One-off integration costs 28 (5,515) - (5,515) (8,073)
Total resources expended (138,385) (19,702) (158,087) (159,896)
Net incoming resources before joint ventures and transfers (211) (1,493) (1,704) 769
Share of operating profit of joint ventures 493 - 493 546 Gross transfers between funds 19 (2,664) 2,664 - -
Net income/(expenditure) for the year before other recognised gains and losses (2,382) 1,171 (1,211) 1,315
Gain on investment assets 1,263 64 1,327 7,515 Actuarial gains/(losses) on defined-benefit pension schemes 21 7,328 - 7,328 (5,840)
Net movement of funds in year 6,209 1,235 7,444 2,990
Reconciliation of funds Total funds at 1 April 8,975 3,632 12,607 9,617
Total funds at 31 March 19 15,184 4,867 20,051 12,607
All incoming resources and resources expended derive from continuing activities. The notes supporting the financial statements are on pages 97 to 120.
94 Balance Sheets As at 31 March 2011
Group Group Charity Charity 2011 2010 2011 2010 Note £’000 £’000 £’000 £’000
Fixed assets Intangible assets 11 - - - – Tangible assets 11 19,484 14,581 16,374 12,010
Investments Investments 12 29,171 28,136 30,249 31,214 Investments in joint venture: Share of gross assets 12 234 1,199 - – Share of gross liabilities 12 (64) (440) - – Share of net assets 170 759 - –
Total fixed assets 48,825 43,476 46,623 43,224
Current assets Stock 13 652 688 - 41 Debtors 14 18,997 20,484 30,353 27,467 Short-term investments 15 1 1,200 1 1,200 Cash at bank and in hand 7,996 6,982 - 2,151
Total current assets 27,646 29,354 30,354 30,859
Liabilities Creditors: amounts falling due within one year 16 (28,175) (24,430) (28,529) (29,194)
Net current (liabilities)/assets (529) 4,924 1,825 1,665
Creditors: amounts falling due after one year 17 (1,427) (2,469) (1,069) (1,976) Provisions for liabilities and charges 18 (10,937) (8,806) (10,807) (8,716)
Net assets excluding pension liability 35,932 37,125 36,572 34,197
Defined-benefit pension scheme liability 21 (15,881) (24,518) (15,783) (24,332)
Net assets including pension liability 20,051 12,607 20,789 9,865
Funds Endowment funds 19 1,798 1,722 1,798 1,722 Restricted funds 19 3,069 1,910 3,069 1,910
Endowed and Restricted funds 4,867 3,632 4,867 3,632
Fixed asset fund 19 14,873 9,995 14,873 9,995 General reserve 19 16,192 23,498 16,832 20,570
Unrestricted funds excluding pension liability 31,065 33,493 31,705 30,565
Pension liability 21 (15,881) (24,518) (15,783) (24,332)
Total funds 20,051 12,607 20,789 9,865
Company registration number 068257.
The financial statements on pages 94 to 120 were approved by the Board of Trustees on 24/11/2011 and signed on its behalf by:
Dianne Jeffrey Chairman
95 Consolidated cash flow statement For the year ended 31 March 2011
Group Group 2011 2010 £’000 £’000
Net cash inflow/(outflow) from operating activities 4,479 (4,235)
Returns on investment and servicing of finance Investment income and interest received 581 899 Investment management costs (67) (107) Distribution received from joint venture 1,082 344 Net cash inflow from returns on investments 1,596 1,136
Capital expenditure and financial investment Purchase of tangible and intangible fixed assets (7,536) (2,450) Sale of tangible and intangible fixed assets 603 625 Purchase of fixed assets unlisted investments (11,712) (2,288) Sale of fixed assets investment 12,004 4,046 Net cash (outflow) from capital expenditure and financial investment (6,641) (67)
Management of liquid resources and financing Repayment of bank loans (231) (217) Sale of current asset investments 1,199 5,213 Net cash inflow from management of liquid resources and financing 968 4,996
Increase in cash in the period 402 1,830
Reconciliation of net cash flow to movement in net funds Increase in cash in the period 402 1,830 Cash inflow from decrease in liquid resources (1,199) (5,213) Cash outflow from decrease in debt 231 217 Movement in net funds in the period (566) (3,166)
Net funds at 1 April 7,481 10,647 Net funds at 31 March 6,915 7,481
Reconciliation of net (outgoing)/incoming resources to net cash inflow/(outflow) from operating activities Net (outgoing)/incoming resources (1,704) 769 Investment income and interest received (581) (899) Investment management costs 67 107 Impairment of intangible and tangible assets (72) 211 Depreciation and amortisation charge 2,425 2,983 (Profit) on sale of fixed assets (323) (198) Decrease in stocks 36 500 Decrease/(increase) in debtors 1,487 (533) Increase/(decrease) in creditors, excluding overdrafts and loans 2,322 (8,813) Increase in provisions 2,131 2,137 Difference between pension charge and cash contribution (1,309) (499) Net cash inflow/(outflow) from operating activities 4,479 (4,235)
Analysis of changes in net funds Group at Cash Group at 1 April 2010 flows 31 March 2011
Cash at bank and in hand 6,982 1,014 7,996 Overdrafts (223) (612) (835) 6,759 402 7,161 Short-term deposits 1,200 (1,199) 1 Loans due after one year (478) 231 (247) 7,481 (566) 6,915
96 Notes to the financial statements For the year ended 31 March 2011
1. Accounting policies
The Charity is a company limited by guarantee. The members of • Investment income is accounted for when receivable and the company are the Trustees, who are also ordinary members includes the related tax recoverable. and named on page 121. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per • Shop sales are accounted for as income on a receipts basis. member of the Charity. • Trading income is accounted for on an invoiced basis. Income The principal accounting policies are summarised below. from insurance activities is accounted for when the insurance policy is sold or renewed. The upfront payment arising from the Basis of preparation sale of emergency alarm products through an Age UK subsidiary The financial statements have been prepared under the historical (Aid-Call Limited) is accounted on an invoiced basis. cost convention, with the exception of investments, which are included at market value. The financial statements have been • Sales from Training are accounted for either where income is prepared in accordance with the Statement of Recommended received in advance of delivery of the training its recognition Practice (SORP) Accounting and Reporting by Charities, published is deferred and included in creditors until the contract is in March 2005, and applicable Accounting Standards. performed, or where the income is received after the delivery the income is accounted for on an invoiced basis. The Trustees have reviewed Age UK’s financial position considering impact of future activities to ensure it is appropriate Resources expended to produce the accounts on a going-concern basis. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related Basis of consolidation to that category. Where costs cannot be directly attributed to The consolidated accounts of the Group incorporate the accounts particular headings they have been allocated to activities on of the Charity, its subsidiary undertakings and its share in its Joint a basis consistent with use of resources. Ventures. Joint Ventures are accounted for using the gross equity method of accounting. The Trustees have taken the exemption • Grants payable are charged in the year when the offer is conferred by S408(3) Companies Act 2006, accordingly the conveyed to the recipient, except in cases where the offer is accounts present a consolidated Statement of Financial Activities conditional, such grants being recognised as expenditure when (SOFA) only. In order to comply with the Charities SORP the gross the conditions are fulfilled. Offers subject to conditions which income and net income for the Charity for the year to have not been met at the year end are noted as a commitment, 31 March 2011 are disclosed in note 19. but not accrued as expenditure.
Incoming resources • Fundraising costs are those incurred in seeking voluntary Income is accounted for as the Charity earns the right to donations and do not include the costs of disseminating consideration by its performance. All income is derived from information in support of charitable objectives. services and activities carried out in the UK. • Governance costs are the costs associated with the running All incoming resources are included in the SOFA when the of the Charity, as opposed to the direct management functions Charity is legally entitled to the income and the amount can inherent in generating funds, service delivery and programme be quantified with reasonable accuracy. The following specific or project work. This includes such items as internal and policies apply to categories of income. external audit, legal advice for Trustees and costs associated with constitutional and statutory requirements. • Donations and all other receipts generated from fundraising are reported gross on a receivable basis. • Support costs, which include office functions such as general management, payroll administration, budgeting and • Legacies are accounted for as incoming resources once accounting, information technology, human resources and the receipt of the legacy becomes reasonably certain and financing, are allocated across the categories of charitable quantifiable. For pecuniary legacies this will generally be at expenditure, governance costs and the costs of generating the point probate is granted. For residuary legacies this will funds. The basis of the cost allocation has been explained generally be on the earlier of cash receipt or once confirmation in note 7 to the accounts. has been received from the representatives of the estates that payment of the legacy will be made or property transferred and • Where information about the aims, objectives and projects once all conditions attached to the legacy have been fulfilled. of the charity is provided in the content of fundraising material in an educational manner in the furtherance of • Grants receivable, where related to performance and specific the Charity’s objectives, those costs are apportioned to deliverables, income is accounted for as the Charity earns the charitable expenditure. right to consideration by its performance. Where income is received in advance of performance, its recognition is deferred • A percentage of the cost of selling donated goods has been and included in creditors. Where entitlement occurs before allocated to charitable activities. The percentage allocation income is received, the income is accrued. is based on the number of hours per week spent by full-time equivalent staff in promoting the Charity’s activities. • Gifts in Kind, where donated for distribution, these are included at the value to the Charity and recognised as income when • Irrecoverable VAT is charged as a cost to the statement they are distributed to the projects. Gifts donated for resale are of financial activities. included as income when they are sold, at the price they are sold.
• Where donated services and facilities are provided they are included at the value to the Charity where they can be quantified. An equivalent item has been recognised in costs. The value placed on them has been the value to the Charity (i.e. the price the Charity would have paid on the open market). No amounts are included in the financial statements for services donated by volunteers.
97 Notes to the financial statements For the year ended 31 March 2011
Intangible fixed assets Pensions Development costs are capitalised when they are expected to For defined-benefit schemes the amounts charged in resources generate future revenue streams. Such costs are amortised over expended are the current service costs and gains and losses on a period no longer than three years commencing in the year settlements and curtailments. They are included as part of staff in which sales of the product are first made. Impairments are costs. Past service costs are recognised immediately in the profit recognised when events or changes in circumstances indicate and loss account if the benefits have vested. If the benefits have that the carrying amount may not be recoverable. not vested immediately, the costs are recognised over the period until vesting occurs. The interest cost and the expected return on Tangible fixed assets assets are shown as a net amount of other finance costs or credits Tangible fixed assets costing more than £5,000 are capitalised and adjacent to interest. Actuarial gains and losses are recognised included at cost including any incidental expenses of acquisition. immediately in the other recognised gains and losses. Depreciation and any impairment is provided on all tangible fixed assets at rates calculated to write off the cost on a straight-line Defined-benefit schemes are funded, with the assets of the basis over their expected useful economic lives as follows: scheme held separately from those of the group, in separate trustee administered funds. Pension scheme assets are measured Freehold land nil at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate Freehold and equivalent to the current rate of return on a high-quality corporate long-leasehold properties over 40 or 50 years bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are Gifted housing over 50 years updated at each balance sheet date. The resulting defined-benefit asset or liability is presented separately after other net assets Short-leasehold properties over 5 years on the face of the balance sheet.
Fixtures and fittings over a period ranging The Charity contributes to two closed defined-benefits scheme. from 3 to 10 years For defined contribution schemes the amount charged to the SOFA Motor vehicles over 4 years in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between Computer equipment over 3 years contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet. Investments Listed investments are stated at market value at the balance The Charity contributes to a group personal pension plan operated sheet date. The SOFA includes the net gains and losses arising on by Zurich as well as an occupational money-purchase scheme. revaluations and disposals throughout the year. Investments in A pension plan is available to all employees over the age of 18. subsidiaries are held at cost less provision for impairment if any. The assets of the scheme are held separately from those of the Charity. The annual contribution payments are charged to the SOFA. It is the Charity’s policy to keep valuations up to date such that when investments are sold there is no realised gain or loss Funds arising. As a result the Statement of Financial Activities does not Endowment funds distinguish between the valuation adjustments relating to sales Investment income and gains/losses are allocated to the and those relating to continued holdings as they are together appropriate fund, all income from endowed funds currently treated as changes in the investment portfolio throughout the held are accounted for as unrestricted. year. Movements in value arising from investment changes or revaluation and the profit on disposal of investments have been Restricted funds charged or credited to the funds to which they relate. Restricted funds are funds subjects to special conditions imposed by the donor, or with their authority (e.g. through a public appeal) Investment properties are stated at market value at balance or created through a legal process. The funds are not therefore sheet date. The SOFA includes the net gains and losses arising available for work performed by Age UK other than that specified on revaluations throughout the year. by the donor.
Gifted Housing scheme Unrestricted funds Gifted houses are accounted for as income when donated at Unrestricted funds are available for use at the discretion of the market value. A qualified surveyor carries out the valuations. Trustees in furtherance of the general objectives of the Charity When an individual donates a house to the Charity, the Charity and include the following. is committed to caring for that individual. An actuarial valuation Fixed asset funds: This fund represents amounts invested in fixed of the total cost of care for individuals who have gifted their house assets used by the charity, including gifted houses less the related is made and the sum is included within provision for liabilities and care provision. charges. Costs of care are charged to the provision as incurred General reserves: This represents funds that are expendable at (note 18). the discretion of the Trustees in the furtherance of the objects of the Charity. Leases The Charity has no finance leases. All operating leases and rental Pension reserve expenses are charged to the SOFA on a straight-line basis. In accordance with FRS17 - Retirement benefits, the liability attributable to the pension schemes as set out in note 21 is Stock shown as a reduction of total funds. No designation of funds to Purchased stock is valued at the lower of cost and net realisable meet future pension commitments at the balance sheet date is value. Items donated for resale or distribution are not included in place as Age UK anticipates that these commitments will be in the financial statements until they are sold or distributed. met through future cash flows and this is subject to regular review in conjunction with actuarial valuations and related professional advice.
98 Notes to the financial statements For the year ended 31 March 2011
2. Voluntary Income
Unrestricted Restricted 2011 2010 & Endowed Total Total £’000 £’000 £’000 £’000
Donations and gifts 8,540 9,916 18,456 17,412 Legacies 20,860 696 21,556 22,258 Grants 556 6,304 6,860 8,624 29,956 16,916 46,872 48,294
An amount of £11,033,123 has not been accrued for legacy income because it did not meet all the conditions for recognition. This is a combination of amounts received after the year end and residuary legacies where final estate accounts are not yet received.
3. Other trading income and costs
Raffles and Alarm Training Corporate 2011 2010 lotteries services sponsorship Total Total and events £’000 £’000 £’000 £’000 £’000 £’000
3a. Other trading income 8,712 7,341 5,230 2,052 23,335 26,189
3b. Other trading costs (4,027) (6,844) (4,984) (895) (16,750) (22,020)
4. Investment Income
Unrestricted Restricted 2011 2010 & Endowed Total Total £’000 £’000 £’000 £’000
Dividend income 448 12 460 710 Bank interest receivable 121 – 121 189 569 12 581 899
5. Charitable Income
Unrestricted Restricted 2011 2010 & Endowed Total Total £’000 £’000 £’000 £’000
Information and advice 115 (11) 104 587 Independent at home 1,364 388 1,752 2,427 Have fun and stay well 4,193 159 4,352 3,879 Campaign for change and public affairs – – – 56 International 171 – 171 170 Research 3 – 3 3 Supporting local communities 291 49 340 154 6,137 585 6,722 7,276
Information and advice restricted income includes the reversal of prior year income written off in current year.
99 Notes to the financial statements For the year ended 31 March 2011
6. Resources Expended
Activities Grant Allocation 2011 2010 undertaken funding of of support Total Total directly activities costs £’000 £’000 £’000 £’000 £’000
Costs of generating funds Costs of generating voluntary income Donations and gifts 5,102 – 970 6,072 7,079 Legacies 657 – 551 1,208 1,026 Grants 292 – 199 491 401 6,051 – 1,720 7,771 8,506
Activities for generating funds Retail 36,020 – 2,978 38,998 37,743 Insurance and other commissions 14,803 – 1,017 15,820 14,671 Other trading costs 16,075 – 675 16,750 22,020 66,898 – 4,670 71,568 74,434
Investment management costs 67 – – 67 107 73,016 – 6,390 79,406 83,047
Charitable activities Information and advice 6,612 682 793 8,087 8,572 Independent at home 3,489 (7) 657 4,139 5,611 Have fun and stay well 7,382 2,781 1,127 11,290 11,519 Campaign for change and public affairs 6,954 14 885 7,853 9,449 International 1,021 7,860 564 9,445 7,350 Research 876 1,430 162 2,468 2,134 Supporting local communities 16,356 11,149 1,727 29,232 23,428 42,690 23,909 5,915 72,514 68,063
Governance costs 365 – 287 652 713
One-off Integration costs 5,201 314 – 5,515 8,073
Total resources expended 121,272 24,223 12,592 158,087 159,896
Independent at home grant funding includes the reversal of an over-accrual in the prior year.
100 Notes to the financial statements For the year ended 31 March 2011
Analysis for grants 2011 2010 £’000 £’000
UK Grants
Research 1,491 1,665 Home Services 92 39 Wellbeing Services 2,495 2,875 Digital Inclusion 122 32 Engagement – 6 Information & Advice 677 1,862 Support of organisations working for people in later life 11,395 8,343 Services Development Programmes 28 680
Total UK grants 16,300 15,502
International Grants
HelpAge International 1,834 2,584 Sponsor a Grandparent 2,297 2,466 Disasters Emergency Committee (DEC) 3,153 1,134 Emergency Appeals 251 (183) Other International Projects 388 301
Total International Grants 7,923 6,302
Total Grants 24,223 21,804
All international grants were made in sterling and therefore there were no transactions in foreign currencies. Over 1,500 grants were awarded to organisations during the year ending 31 March 2011; no grants were made to individuals. A full list is available on request.
101 Notes to the financial statements For the year ended 31 March 2011
7. Support Costs
Directorate Finance Office IT Human Property 2011 2010 & Legal Management resources Total Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Costs of generating funds Costs of generating voluntary income Donations and gifts 31 175 370 261 86 47 970 1,488 Legacies 17 99 210 149 49 27 551 283 Grants 6 36 76 53 18 10 199 113
Cost of activities for generating funds Retail 63 524 225 646 1,509 11 2,978 2,159 Insurance and 31 166 371 160 289 – 1,017 646 other commissions Other trading costs 18 107 115 212 209 14 675 657
Charitable activities Information and advice 19 89 201 388 72 24 793 885 Independent at home 16 74 166 321 60 20 657 717 Have fun and stay well 27 137 206 504 229 24 1,127 1,057 Campaign for change 70 131 285 264 98 37 885 1,202 and public affairs International 44 84 181 168 63 24 564 526 Research 13 24 52 48 18 7 162 145 Supporting local communities 156 213 461 637 210 50 1,727 1,558 345 752 1,552 2,330 750 186 5,915 6,090
Governance costs 133 154 – – – – 287 184
Total support costs 644 2,013 2,919 3,811 2,910 295 12,592 11,620
Cost allocation includes an element of judgement and the charity has had to consider the cost benefit of detailed calculations and record keeping. To ensure full cost recovery on projects the Charity adopts a policy of allocating costs to the respective cost headings through the year. This allocation includes support costs where they are directly attributable. Therefore the support costs shown are a best estimate of the cost that have been so allocated.
The central support costs are allocated as follows. • Directorate, estimate staff time used to calculate weighted percentage. • Finance, estimate staff time used to calculate weighted percentage. • Legal, estimate staff time used to calculate weighted percentage. • Office management, headcount based in offices. • IT, number of devices used by division. • Human resources, headcount and estimated time spent on each operational division as appropriate. • Property, floor space used by each division.
Governance costs are made up of the following 2011 2010 £’000 £’000
Internal audit 165 167 External audit 162 310 Trustees’ expenses 13 29 Trustees’ indemnity insurance 6 9 Trustees’ conference and meeting costs 19 14 Apportionment of Directors’ costs (based on time spent) 133 78 Company secretariat 154 106 652 713
102 Notes to the financial statements For the year ended 31 March 2011
8. Staff costs and numbers
Group 2011 Group 2010 Charity 2011 Charity 2010 £’000 £’000 £’000 £’000
Salaries and wages 42,529 46,483 8,842 9,841 Social security costs 3,847 4,346 925 1,082 Pension costs 1,967 2,281 588 663 48,343 53,110 10,355 11,586
Total redundancy cost for 2011 was £691 thousand for the group (2010: £4,201 thousand) and £210 thousand for the Charity (2010: £1,538 thousand).
The average number of employees, calculated on a full-time basis, was as follows.
Group 2011 Group 2010 Charity 2011 Charity 2010 £’000 £’000 £’000 £’000
Retail activities 1,207 1,186 – – Other trading activities 485 731 – – Other 253 304 253 304 1,945 2,221 253 304
Group 2011 Group 2010 Charity 2011 Charity 2010 £’000 £’000 £’000 £’000
£60,000–£70,000 8 14 3 3 £70,001–£80,000 9 5 – – £80,001–£90,000 4 7 – 2 £90,001–£100,000 4 4 2 1 £100,001–£110,000 5 4 – – £110,001–£120,000 1 1 – – £120,001–£130,000 – – – – £130,001–£140,000 – – – – £140,001–£150,000 – – – – £150,001–£160,000 – – – – £160,001–£170,000 – – – – £170,001–£180,000 2 1 – – £180,001–£190,000 – 1 – – Total banded employees 33 37 5 6
Contributions of £210,314 have been paid into pension schemes on behalf of 31 of the above employees (2010: £207,014). The Group salary bands include employees in both the Charity and trading subsidiaries. At 31 March 2011 there are 890 staff members in the defined contribution schemes.
9. Trustee emoluments
The Trustees received no remuneration for their services. The aggregated amount of expenses reimbursed to 15 Trustees during the year was £13,015 (2010: £28,825, to 15 Trustees). The nature of Trustees’ expenses incurred were travel, accommodation and subsistence. Indemnity insurance is provided for Trustees, premiums paid during the year totalled £6,038 (2010: £9,174).
During the year ended 31 March 2011 the Charity awarded grants of £270,230 (2010: £172,146) for projects to which members of the Advisory Council of Research into Ageing, a special trust of the Charity, were connected. These members of the Research Advisory Council did not participate in the decision to award the respective grants.
Research Advisory Council member Details of research grants £ Professor Christopher Fry, University of Surrey Accumulative oxidative stress and cardiovascular dysfunction in ageing 70,500 Professor Christopher Fry, University of Surrey Intercellular communication within the bladder wall of older overactive bladder patients 129,230 Professor Paul Hiscott, University of Liverpool Cystatin C in age-related macular degeneration: mechanism of action and consequences on cellular processes 70,500
103 Notes to the financial statements For the year ended 31 March 2011
10. Net income
This is stated after charging: 2011 2010 £’000 £’000
Depreciation and amortisation of tangible and intangible fixed assets 2,425 2,848 Trustees’ indemnity insurance 6 9 Trustees’ reimbursed expenses 13 29 Interest payable 51 58 External Auditors’ remuneration Audit of these financial statements 70 117 Audit of subsidiary companies 92 97 Other services relating to taxation 132 142 All other services 11 43 Other auditors – 96 Operating lease rentals – buildings 11,344 9,962 Operating lease rentals – other 64 30
11a. Intangible Fixed assets
The Group and Charity Development costs £’000
Cost As at 1 April 2010 385 Disposals in year (72) At 31 March 2011 313 Depreciation As at 1 April 2010 (385) Charge for the year – Write off due to impairment of assets 72 At 31 March 2011 (313)
Net book value at 31 March 2011 and 1 April 2010 –
Following the disposal of the Healthcare division, the value of the assets sold was reviewed and as a result the values of assets were written off. These adjustments are disclosed as write-off due to impairment.
11b. Tangible Fixed assets
The Group Freehold and Gifted Short Motor Equipment, Total long–leasehold Housing leasehold Vehicles fixtures and fittings £’000 £’000 £’000 £’000 £’000 £’000 Cost Balance brought forward 7,545 5,903 12,422 2,783 15,150 43,803 Additions in year – 1,050 4,590 215 1,681 7,536 Disposals in year (1) (105) (1,470) (356) (7,955) (9,887) Transfers to investment properties – (48) – – – (48) Transfers (202) 202 – – – –
At 31 March 2011 7,342 7,002 15,542 2,642 8,876 41,404
Depreciation Balance brought forward (2,354) (683) (11,682) (2,347) (12,156) (29,222) Charge for the year (161) (104) (440) (289) (1,431) (2,425) Impairment of assets – – – – 72 72 Disposals in year – 19 1,448 355 7,822 9,644 Transfers to investment properties – 11 – – – 11
At 31 March 2011 (2,515) (757) (10,674) (2,281) (5,693) (21,920)
Net book value At 31 March 2011 4,827 6,245 4,868 361 3,183 19,484
Net book value At 31 March 2010 5,191 5,220 740 436 2,994 14,581
104 Notes to the financial statements For the year ended 31 March 2011
11c. Tangible Fixed assets
The Charity Freehold and Gifted Short Motor Equipment, Total long–leasehold Housing leasehold Vehicles fixtures and fittings £’000 £’000 £’000 £’000 £’000 £’000 Cost Balance brought forward 6,864 5,903 12,253 2,783 2,008 29,811 Additions in year – 1,050 4,552 215 131 5,948 Disposals in year – (105) (1,369) (356) (130) (1,960) Transfers to investment properties – (48) – – – (48) Transfers (202) 202 – – – –
At 31 March 2011 6,662 7,002 15,436 2,642 2,009 33,751
Depreciation Balance brought forward (2,191) (683) (11,529) (2,347) (1,051) (17,801) Charge for the year (113) (104) (429) (289) (495) (1,430) Disposals in year – 19 1,348 355 121 1,843 Transfers to investment properties – 11 – – – 11
At 31 March 2011 (2,304) (757) (10,610) (2,281) (1,425) (17,377)
Net book value At 31 March 2011 4,358 6,245 4,826 361 584 16,374
Net book value At 31 March 2010 4,673 5,220 724 436 957 12,010
The net book value of freehold and long-leasehold properties comprises:
Fixed Assets building value Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000
Freehold interest, including gifted housing 7,565 7,151 7,565 7,151 Long leaseholds 279 285 279 285 7,844 7,436 7,844 7,436
Fixed Assets land value Group Group Charity Charity 2011 2010 2011 2010 £’000 £’000 £’000 £’000
Freehold interest, including gifted housing 3,228 2,975 2,759 2,457 3,228 2,975 2,759 2,457
105 Notes to the financial statements For the year ended 31 March 2011
12. Investments
Listed and Investment Group Shares in Charity Unlisted properties Subsidiary Investments undertaking £’000 £’000 £’000 £’000 £’000
Market value at 1 April 2010 25,310 2,826 28,136 3,078 31,214 Additions/Transfer from 11,674 38 11,712 – 11,712 Tangible fixed assets Disposals (11,619) (290) (11,909) (2,000) (13,909) Revaluation surplus 1,168 64 1,232 – 1,232 transfer to funds Market value at 31 March 2011 26,533 2,638 29,171 1,078 30,249
Historic value at 31 March 2011 24,404 – 24,404 1,078 25,482
Investment properties are properties acquired either through our Gifted Housing programme or received as Legacy income. When these properties are retained by Age UK instead of being sold they get classified as investment properties. As these properties are acquired at a nil cost to the organisation they do not carry a historic value. The investment properties of the Charity and Group were valued at 31 March 2011 and 31 March 2010 at open market value by Countrywide Surveyors.
Listed Investments comprise the following 2011 2010 £’000 £’000
BlackRock – Charishare Common Investment Fund: UK equities – 6,801 Barclays Global Investors – BGI North American Index Selection – 1,766 – BGI Japan Index Selection – 1,057 – BGI Europe Index Selection – 1,676 – BGI Pacific Rim Index Selection – 749 – Undispersed cash in investment account – 104 Sarasin & Partners LLP – Sterling Fixed Interest 3,752 859 – UK Equities 8,344 4,649 – Global Equities 8,304 3,037 – Property 85 96 – Alternative Assets 937 309 21,422 21,103
Other – Other 11 11
21,433 21,114
2011 2010 Endowed Funds £’000 £’000
J. P. Morgan – UK Equity Fund for Charities 1,045 995 – Bond Fund for Charities 656 646 Sarasin & Partners LLP – Sterling Fixed Interest 12 12 – UK Equities 54 52 1,767 1,705
Total value of Listed Investments 23,200 22,819
Total value of Unlisted Investments – Liquid Assets 3,333 2,491
Total value of Listed and Unlisted Investments 26,533 25,310
Joint Venture 2011 2010 £’000 £’000 Share of assets Share of fixed assets 9 91 Share of current assets 225 1,108 234 1,199 Share of liabilities Liabilities due within one year or less (64) (440) Share of net assets 170 759
In the year Intune Group Ltd, a member of the Age UK Group, has disposed of its interest in the joint venture SeniorLink Eldercare Ltd. The disposal realised a gain of £95 thousand.
106 Notes to the financial statements For the year ended 31 March 2011
Subsidiaries at 31 March 2011 The Group includes the following subsidiary trading companies.
Subsidiary undertaking Principal activities Ownership %
Active subsidiaries
Subsidiaries of Age UK Age UK Trading Ltd (formerly Age Concern Shops Ltd) Provision of staff and management of charity shops 100% Age UK Services Ltd Supply of services to Age UK 100% Age Concern Holdings Ltd Holding company for Age UK trading activities 100% Intune Group Ltd Arrangement of financial services 100% Charity Flowers Ltd Receive commission on sale of flowers 100%
Subsidiaries of Age Concern Holdings Ltd Age UK Enterprises Ltd Insurance and other services for older people 100% Aid-Call Ltd Personal emergency response systems 100% Age Concern Financial Solutions Ltd Provision of equity release products 100%
Subsidiaries Age UK Enterprises Ltd Interest in joint ventures: Age Scotland Enterprises Ltd Trading Age Concern Enterprises products in Scotland 50% Age NI Enterprises Ltd Trading Age Concern Enterprises products in Ireland 50%
Inactive subsidiaries:
Subsidiaries of Age UK Age Concern Trust Corporation N/A Age Care and Leisure Services Ltd 100% Help the Aged N/A Help the Aged Trading Ltd 100% Help the Aged Mail Order Ltd 100%
Subsidiaries of Age Concern Holdings Ltd Age Concern Ltd 100% Age Concern Trading Ltd 100%
Subsidiaries of Age UK Enterprises Ltd Age Concern Funeral Services Ltd 100% Age Concern Insurance Services Ltd 100% Age Concern Financial Partnerships Ltd 100% Age Concern Enterprises (Cymru) Ltd 100%
Subsidiaries of Intune Group Ltd Intune Services Ltd 100% Intune Financial Services Ltd 100% Ria Trading Ltd 100%
Subsidiaries of Help the Aged Mail Order Ltd HtA Solutions Ltd 100% Age UK Holidays Ltd 100%
All the subsidiary trading companies gift aid their taxable profits to the Charity. Charity Flowers Limited is registered in Guernsey, all other subsidiaries are registered in England and Wales.
107 Notes to the financial statements For the year ended 31 March 2011
13. Stock
Group 2011 Group 2010 Charity 2011 Charity 2010 £’000 £’000 £’000 £’000
Finished goods and goods for resale 652 688 – 41 652 688 – 41
14. Debtors
Group 2011 Group 2010 Charity 2011 Charity 2010 £’000 £’000 £’000 £’000
Trade debtors 7,181 7,444 820 1,107 Amounts due from group undertakings – – 5,375 2,740 Other debtors 3,555 4,361 2,855 4,038 Gift aid due from subsidiaries – – 13,607 11,520 Prepayments and accrued income 8,261 8,679 7,696 8,062 18,997 20,484 30,353 27,467
Included within other debtors is a £1,800 thousand (2010: £800 thousand) held in an Escrow account relating to the Charity’s defined- benefit schemes.
15. Short-term investments
Group 2011 Group 2010 Charity 2011 Charity 2010 £’000 £’000 £’000 £’000
Short-term deposits 1 1,200 1 1,200 1 1,200 1 1,200
Short-term deposits are held with major UK banks. They include Cater Allen, BlackRock (formerly Barclays Global Investors), Allied Irish and COIF.
16. Creditors: amounts falling due within one year
Group 2011 Group 2010 Charity 2011 Charity 2010 £’000 £’000 £’000 £’000
Trade creditors (5,041) (2,914) (2,039) (110) Amounts due to group undertakings (288) – (13,932) (14,509) Tax and social security payable (1,610) (1,478) (881) (899) Short-term grants (1,811) (1,574) (1,811) (1,574) Bank overdraft (835) (223) (604) – Other creditors (5,591) (6,857) (3,674) (5,588) Accruals and deferred income (12,999) (11,384) (5,588) (6,514) (28,175) (24,430) (28,529) (29,194)
Amounts due to group undertakings, includes amounts due to joint ventures of £302 thousand (2010: amounts due to joint ventures of £206 thousand were included in Other creditors).
The movements in deferred income are analysed as follows: Group 2011 Group 2010 Charity 2011 Charity 2010 £’000 £’000 £’000 £’000
Deferred income at 1 April (2,256) (2,836) (394) (836) Amounts released from previous years 2,256 2,795 394 795 Incoming resources deferred in the year (4,236) (2,215) – (353) Deferred income at 31 March (4,236) (2,256) – (394)
Deferred income as at 31 March 2011 is made up of following: sale of lottery tickets for future draws £1,709 thousand (2010: £730 thousand), deferred income for services in 2011–12 £1,750 thousand (2010: £nil) and prepaid alarm monitoring services £856 thousand (2010: £856 thousand). There is no further deferred income as at March 2011 (2010: £591 thousand, this was in relation to prepaid donations, sponsorship and subscriptions and £79 thousand for other miscellaneous income).
108 Notes to the financial statements For the year ended 31 March 2011
17. Creditors: amounts falling due after one year
Group 2011 Group 2010 Charity 2011 Charity 2010 £’000 £’000 £’000 £’000
Long-term grants (967) (1,954) (967) (1,954) Bank loans (247) (478) – – Interest-free loans from housing residents (15) (22) (15) (22) Operating lease incentives (119) – (87) – Deferred income (79) (15) – – (1,427) (2,469) (1,069) (1,976)
Group 2011 Group 2010 Charity 2011 Charity 2010 £’000 £’000 £’000 £’000 Creditors due after one year: One to two years (897) (1,445) (786) (1,199) Two to five years (515) (1,002) (268) (755) Over five years (15) (22) (15) (22) (1,427) (2,469) (1,069) (1,976)
The bank loans are secured by a debenture over the assets of Age UK Enterprises Limited, they are payable in quarterly instalments and carry a fixed interest rate of 6.54 per cent.
18. Provisions for liabilities and charges
Group 2011 Group 2010 Charity 2011 Charity 2010 £’000 £’000 £’000 £’000
Provisions at 1 April (8,806) (6,669) (8,716) (6,669) Utilised in the year 3,502 1,061 3,412 1,061 Charged to statement of financial activities (5,633) (3,198) (5,503) (3,108) Provisions at 31 March (10,937) (8,806) (10,807) (8,716)
Group 2011 Group 2010 Charity 2011 Charity 2010 £’000 £’000 £’000 £’000
Provisions due within one year (4,063) (1,702) (3,933) (1,612) Provisions due after more than one year (6,874) (7,104) (6,874) (7,104) (10,937) (8,806) (10,807) (8,716)
Provision for liabilities and charges at 31 March 2011 is predominantly made up of following: to cover Age UK’s commitment to provide care and property maintenance for beneficiaries who have donated real estate to the Charity £4,620 thousand (2010: £4,601 thousand), to provide for property maintenance and repairs where there is a current obligation £2,668 thousand (2010: £2,940 thousand), a commitment made to future grant payments £2,421 thousand (2010: £900 thousand) and obligations in relation to onerous leases £970 thousand (2010: £123 thousand). In the 2011 year-end balance there are also other miscellaneous obligations provided for £258 thousand (2010: £242 thousand) this is mainly made up of obligations in relation to Young People’s Learning Agency and insurance.
109 Notes to the financial statements For the year ended 31 March 2011
19. Movement in Funds
The Group 31 March Incoming Outgoing Unrealised/ Transfers 31 March 2010 resources resources realised gains 2011 and losses £’000 £’000 £’000 £’000 £’000 £’000
Endowed Funds Charity of C. E. Saunders 737 – – 29 – 766 Gillingham 815 – – 31 – 846 Miss E. Lipson Trust 120 12 – 4 – 136 ACE Legacy Endowment Fund 50 – – – – 50 1,722 12 – 64 – 1,798
Restricted Funds
United Kingdom Research 409 1,111 (1,210) – 21 331 Home Services 955 872 (1,475) – (2) 350 Wellbeing Services 405 3,288 (3,375) – 3 321 Digital Inclusion 112 366 (257) – (19) 202 Engagement 216 44 (147) – (33) 80 Information & Advice 2,074 701 (702) – (666) 1,407 Support of organisations working for people in later life 2,639 1,211 (1,149) – 552 3,253 Services Development Programmes 1,174 1,580 (1,389) – (317) 1,048 Others 432 1,647 (1,838) – (1) 240 Total United Kingdom 8,416 10,820 (11,542) – (462) 7,232
International HelpAge International (4,630) 641 (2,093) – 4,066 (2,016) Sponsor a Grandparent (2,745) 1,728 (2,410) – (848) (4,275) Disasters Emergency Committee (DEC) 401 4,193 (3,048) – 38 1,584 Emergency Appeals 190 508 (233) – (141) 324 Other International Projects 278 307 (376) – 11 220 Total International (6,506) 7,377 (8,160) – 3,126 (4,163)
Total Restricted Funds 1,910 18,197 (19,702) – 2,664 3,069
Total Restricted and Endowed Funds 3,632 18,209 (19,702) 64 2,664 4,867
Unrestricted Funds Fixed asset funds 9,995 – – – 4,878 14,873 Unrealised gains on investment assets 7,161 – – 1,168 – 8,329 General funds 13,591 85,364 (82,439) – (7,530) 8,986 Joint Venture 202 (587) – – 555 170 Non-Charitable Trading funds 2,544 53,890 (57,255) 95 (567) (1,293) Unrestricted Funds 33,493 138,667 (139,694) 1,263 (2,664) 31,065 excluding Pension Liability
Pension Reserve (24,518) – 1,309 7,328 – (15,881)
Total funds 12,607 156,876 (158,087) 8,655 – 20,051
The grant commitment to international aid programmes for 2010–11 has been treated as a liability and charged in these financial statements. This creates a negative balance on these funds that will be matched by anticipated restricted income or a transfer from general funds. In the year, transfers from general fund to international restricted funds have been made to cover deficit above future anticipated income levels. Transfers from general funds have also been made to the fixed asset fund as fixed assets have increased in the year. Transfers from UK restricted funds to general funds have been made to reimburse general funds, as activities financed through general funds meet restricted fund criteria. Transfers also include some reallocation of funds between different lines in the restricted fund section. These transfers are not transfers as such but a presentational change where funds have been included under a different category in current year compared to last year.
110 Notes to the financial statements For the year ended 31 March 2011
The Charity 31 March Incoming Outgoing Unrealised/ Transfers 31 March 2010 resources resources realised gains 2011 and losse £’000 £’000 £’000 £’000 £’000 £’000
Endowed Funds Charity of C. E. Saunders 737 – – 29 – 766 Gillingham 815 – – 31 – 846 Miss E. Lipson Trust 120 12 – 4 – 136 ACE Legacy Endowment Fund 50 – – – – 50 1,722 12 – 64 – 1,798
Restricted Funds
United Kingdom Research 409 1,111 (1,210) – 21 331 Home Services 955 872 (1,475) – (2) 350 Wellbeing Services 405 3,288 (3,375) – 3 321 Digital Inclusion 112 366 (257) – (19) 202 Engagement 216 44 (147) – (33) 80 Information & Advice 2,074 701 (702) – (666) 1,407 Support of organisations working for people in later life 2,639 1,211 (1,149) – 552 3,253 Services Development Programmes 1,174 1,580 (1,389) – (317) 1,048 Others 432 1,647 (1,838) – (1) 240 Total United Kingdom 8,416 10,820 (11,542) – (462) 7,232
International HelpAge International (4,630) 641 (2,093) – 4,066 (2,016) Sponsor a Grandparent (2,745) 1,728 (2,410) – (848) (4,275) Disasters Emergency Committee (DEC) 401 4,193 (3,048) – 38 1,584 Emergency Appeals 190 508 (233) – (141) 324 Other International Projects 278 307 (376) – 11 220 Total International (6,506) 7,377 (8,160) – 3,126 (4,163)
Total Restricted Funds 1,910 18,197 (19,702) – 2,664 3,069
Total Restricted and Endowed Funds 3,632 18,209 (19,702) 64 2,664 4,867
Unrestricted Funds Fixed asset funds 9,995 – – – 4,878 14,873 Unrealised gains on investment assets 7,161 – – 1,168 – 8,329 General funds 13,409 98,972 (96,336) – (7,542) 8,503 Unrestricted Funds 30,565 98,972 (96,336) 1,168 (2,664) 31,705 excluding Pension Liability
Pension Reserve (24,332) – 1,295 7,254 – (15,783)
Total Funds 9,865 117,181 (114,743) 8,486 – 20,789
The grant commitment to international aid programmes for 2010/11 has been treated as a liability and charged in these financial statements. This creates a negative balance on these funds that will be matched by anticipated restricted income or a transfer from general funds. In the year, transfers from general fund to international restricted funds have been made to cover deficit above future anticipated income levels. Transfers from general funds have also been made to the fixed asset fund as fixed assets have increased in the year. Transfers from UK restricted funds to general funds have been made to reimburse general funds, as activities financed through general funds meet restricted fund criteria. Transfers also includes some reallocation of funds between different lines in the restricted fund section. These transfers are not transfers as such but a presentational change where funds have been included under a different category in current year compared to last year.
111 Notes to the financial statements For the year ended 31 March 2011
20. Analysis of Group and Charity net assets between funds
The Group Unrestricted Restricted 2011 2010 & Endowed Total Total £’000 £’000 £’000 £’000 Fixed assets Intangible assets – – – – Tangible fixed assets 19,484 – 19,484 14,581 Investments 27,543 1,798 29,341 28,895
Current assets Stock 652 – 652 688 Debtors 18,997 – 18,997 20,484 Short-term investments – 1 1 1,200 Cash at bank and in hand 4,928 3,068 7,996 6,982
Liabilities Current liabilities (28,175) – (28,175) (24,430) Long-term liabilities (1,427) – (1,427) (2,469) Provisions for liabilities and charges (10,937) – (10,937) (8,806) Defined pension scheme liability (15,881) – (15,881) (24,518) 15,184 4,867 20,051 12,607
The Charity Unrestricted Restricted 2011 2010 & Endowed Total Total £’000 £’000 £’000 £’000 Fixed assets Tangible fixed assets 16,374 – 16,374 12,010 Investments 28,451 1,798 30,249 31,214
Current assets Stock – – – 41 Debtors 30,353 – 30,353 27,467 Short-term investments – 1 1 1,200 Cash at bank and in hand (3,068) 3,068 – 2,151
Liabilities Current liabilities (28,529) – (28,529) (29,194) Long-term liabilities (1,069) – (1,069) (1,976) Provisions for liabilities and charges (10,807) – (10,807) (8,716) Defined pension scheme liability (15,783) – (15,783) (24,332) 15,922 4,867 20,789 9,865
21. Pension schemes
Pension schemes – cost to the Group Group Charity Group Charity 2011 2011 2010 2010 Defined-benefit schemes Age Concern Retirement Benefits Scheme (ACRBS) 732 717 750 735 Help the Aged Final Salary Scheme (HtAFSS) 416 416 1,611 1,611 Total defined-benefit schemes costs 1,148 1,133 2,361 2,346
Defined contribution scheme Age UK Pension Plan 1,104 322 791 * Age Concern Pension and Life Assurance Scheme 849 238 925 * Total defined contribution schemes costs 1,953 560 1,716 569
Pensions cost 3,101 1,693 4,077 2,915
*Split between schemes not available.
112 Notes to the financial statements For the year ended 31 March 2011
During the year Age UK Group has operated four pensions schemes, two defined-benefit schemes and two defined-contribution schemes. The two defined-benefit schemes are legacy schemes from Age Concern England and Help the Aged. Both schemes are multi-employer schemes and they are both closed to new entrants and further accruals. For the year ending 31 March 2012 Age UK expects to pay contributions of £1,468,000 to the Age Concern Retirement Benefits Scheme and £1,375,000 to the Help the Aged Final Salary Scheme. The most recent full actuarial valuation for the Age Concern Retirement Benefit Scheme was April 2010 and for the Help the Aged Final Salary Scheme 30 September 2009. At the time of approving the accounts it was the Trustees’ intention to merge the pension schemes. There is no set date for when this is due to be completed. However, the terms of the merger have been agreed in principle. The amounts charged to the Statement of Financial Activities for the defined-contribution schemes are the contributions paid in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet. At 31 March 2011 included in liabilities due within on year there was an amount of £276,024 due to employers and employee contributions, this was paid across to respective pension scheme in April 2011. The employer contribution rate was 8 per cent for the Age UK Pension Plan and 7 per cent for the Age Concern Pension and Life Assurance Scheme, with life assurance and administration costs being additional. The Age Concern Pension and Life Assurance Scheme is being wound up as of 31 March 2011 and no further contributions are payable after this date. Active members have been transferred to the Age UK Pension Plan. All current pension provision is now under one arrangement. Employer contributions from April 1 2011 for the Age UK Pension Plan have been increased to 9 per cent for employees who make a pension contribution of 4 per cent or more. As required by FRS 17, the defined-benefit liabilities have been measured using the projected unit method. The tables below state the FRS 17 actuarial assumptions upon which the valuation of the scheme was based. Recent legislation relating to statutory pensions increases has resulted in the use of the Consumer Price Index (CPI) in place of the Retail Price Index (RPI). This has affected both Schemes but in different ways with pensions in payment continuing to increase in line with RPI under the ACRBS but deferred pensions revaluing in line with CPI. Under the HtAFSS deferred pensions will continue to be revalued in line with RPI but pensions in payment will be increased by CPI. The resulting actuarial gain is £900,000 under the ACRBS and £2,700,000 under the HtAFSS. The mortality assumptions for both Schemes are now on an identical basis and the decision was taken, following a review of assumptions, to remove the 1 per cent per annum underpin. The resulting actuarial gain is £981,000 under the ACRBS and £1,085,000 under the HtAFSS.
Principal actuarial assumptions at the balance sheet date 2011 2011 2010 2010 ACRBS HtAFSS ACRBS HtAFSS Years % Years % Years % Years %
Discount rate 5.50 5.50 5.70 5.70 Rate of increase in salaries N/A 3.20 N/A 3.50 Rate of increase in payment of pre-2005 pensions 3.20 2.70 3.40 3.40 Rate of increase in payment of post-2005 pensions 2.50 2.50 2.40 2.30 Rate of revaluation of deferred pensions in excess of the GMP 2.70 3.20 3.50 3.50 Inflation assumption (RPI) 3.20 3.20 3.50 3.50 Inflation assumption (CPI) 2.70 2.70 N/A N/A Expected returns on scheme assets 6.32 6.67 5.99 7.27
Allowance has been made for 80 per cent of members to take the maximum cash allowance available upon retirement. For 2011 the mortality assumptions for both schemes are S1 Normal base tables projected by year of birth assuming future improvements in line with medium cohort projections; 2010 mortality assumptions for the Age Concern England scheme were S1 Normal base tables projected by year of birth using the PA92 medium cohort with a 1 per cent per annum underpin and for the Help the Aged scheme were SAPS All Pensioners Year of Birth, Medium Cohort with a 1 per cent Minimum Improvement.
Assumed life expectancies on retirement at age 65 2011 2011 2010 2010 ACRBS HtAFSS ACRBS HtAFSS Years Years Years Years
Retiring Today – Males 85.7 85.7 86.0 86.0 Retiring Today – Females 88.3 88.3 88.8 89.1 Retiring in 20 years – Males 86.9 86.9 87.9 87.9 Retiring in 20 years – Females 89.3 89.3 90.7 90.7
Major categories of plan assets as a percentage of total assets The Group 2011 2011 2010 2010 ACRBS HtAFSS ACRBS HtAFSS % % % %
Equities 51.29 60.74 51.66 61.55 Gilts/Fixed-interest Gilts 27.72 15.78 26.69 27.03 Bonds/Fixed-interest Bonds 13.76 16.34 14.14 4.66 Property 7.18 6.66 7.08 6.48 Cash 0.05 0.48 0.43 0.28 100.00 100.00 100.00 100.00
The above figures have not been split out for the Charity because the percentages are the same. None of the scheme’s assets are invested in any property or other assets currently used by the Group.
113 Notes to the financial statements For the year ended 31 March 2011
Expected long-term rates of return on plan assets (per annum) The Group 2011 2011 2010 2010 ACRBS HtAFSS ACRBS HtAFSS % % % %
Equities 7.70 7.70 7.40 8.40 Gilts/Fixed-interest Gilts 4.20 4.20 3.90 5.20 Bonds/Fixed-interest Bonds 5.50 5.50 5.00 4.20 Property 6.20 6.20 5.90 7.40 Cash 4.20 4.20 – – 6.67 6.67 5.95 7.25
The above figures have not been split out for the charity because the percentages are the same.
Change in the fair value of Scheme assets The Group 2011 2011 2011 2010 2010 2010 ACRBS HtAFSS Total ACRBS HtAFSS Total £’000 £’000 £’000 £’000 £’000 £’000
Opening fair value of Scheme assets 34,127 38,529 72,656 26,027 29,876 55,903 Expected return on Scheme assets 2,018 2,772 4,790 1,550 2,150 3,700 Actuarial gains/(losses) 886 (41) 845 6,942 7,132 14,074 Employer contributions 1,468 989 2,457 1,467 1,393 2,860 Employee contributions – – – – 180 180 Benefits paid (including expenses) (2,333) (1,587) (3,920) (1,859) (2,202) (4,061)
Closing fair value of Scheme assets 36,166 40,662 76,828 34,127 38,529 72,656
Present value of scheme liabilities (41,083) (51,626) (92,709) (43,418) (53,756) (97,174)
Deficit in schemes (4,917) (10,964) (15,881) (9,291) (15,227) (24,518)
Related deferred tax liability – – – – – –
Net pension liability (4,917) (10,964) (15,881) (9,291) (15,227) (24,518)
Actual return on Scheme assets 2,904 2,731 5,635 8,492 9,282 17,774
Change in the fair value of Scheme asset The Charity 2011 2011 2011 2010 2010 2010 ACRBS HtAFSS Total ACRBS HtAFSS Total £’000 £’000 £’000 £’000 £’000 £’000
Opening fair value of Scheme assets 33,443 38,529 71,972 25,521 29,876 55,397 Expected return on Scheme assets 1,978 2,772 4,750 1,520 2,150 3,670 Actuarial gains/(losses) 876 (41) 835 6,786 7,132 13,918 Employer contributions 1,439 989 2,428 1,438 1,393 2,831 Employee contributions – – – – 180 180 Benefits paid (including expenses) (2,287) (1,587) (3,874) (1,822) (2,202) (4,024)
Closing fair value of Scheme assets 35,449 40,662 76,111 33,443 38,529 71,972
Present value of scheme liabilities (40,268) (51,626) (91,894) (42,548) (53,756) (96,304)
Deficit in schemes (4,819) (10,964) (15,783) (9,105) (15,227) (24,332)
Related deferred tax liability – – – – – –
Net pension liability (4,819) (10,964) (15,783) (9,105) (15,227) (24,332)
Actual return on Scheme assets 2,854 2,731 5,585 8,306 9,282 17,588
The cumulative amount of actuarial gains and (losses) recognised in the Statement of Financial Activities are as follows. For the Age Concern England Retirement Benefit Scheme since 1 April 2006 £4,736 thousand (2010: £1,098 thousand). For the Help the Aged Final Salary Scheme since 1 May 2003 £(5,887) thousand (2010: £(9,577) thousand).
114 Notes to the financial statements For the year ended 31 March 2011
Change in the present value of the defined-benefit obligation The Group 2011 2011 2011 2010 2010 2010 ACRBS HtAFSS Total ACRBS HtAFSS Total £’000 £’000 £’000 £’000 £’000 £’000
Opening defined-benefit obligation 43,418 53,756 97,174 35,261 39,819 75,080 Current service cost 333 164 497 – 364 364 Interest cost 2,417 3,024 5,441 2,300 2,612 4,912 Contributions by employees – – – – 180 180 Experience (gain)/loss arising on the scheme liabilities (122) 358 236 (195) (237) (432) Losses/(gains) on curtailments – – – – 785 785 Actuarial loss/(gains) (2,630) (4,089) (6,719) 7,911 12,435 20,346 Benefits paid (including expenses) (2,333) (1,587) (3,920) (1,859) (2,202) (4,061)
Liabilities in scheme at end of the year 41,083 51,626 92,709 43,418 53,756 97,174
Change in the present value of the defined-benefit obligation The Charity 2011 2011 2011 2010 2010 2010 ACRBS HtAFSS Total ACRBS HtAFSS Total £’000 £’000 £’000 £’000 £’000 £’000
Opening defined-benefit obligation 42,548 53,756 96,304 34,576 39,819 74,395 Current service cost 326 164 490 – 364 364 Interest cost 2,369 3,024 5,393 2,255 2,612 4,867 Contributions by employees – – – – 180 180 Experience (gain)/loss arising on the scheme liabilities (110) 358 248 (213) (237) (450) Losses/(gains) on curtailments – – – – 785 785 Actuarial loss/(gains) (2,578) (4,089) (6,667) 7,752 12,435 20,187 Benefits paid (including expenses) (2,287) (1,587) (3,874) (1,822) (2,202) (4,024)
Liabilities in scheme at end of the year 40,268 51,626 91,894 42,548 53,756 96,304
Amounts recognised in the Statement of Financial Activities The Group 2011 2011 2011 2010 2010 2010 ACRBS HtAFSS Total ACRBS HtAFSS Total £’000 £’000 £’000 £’000 £’000 £’000
Current service cost* 333 164 497 – 364 364 Interest on pension scheme liabilities 2,417 3,024 5,441 2,300 2,612 4,912 Expected return on scheme assets (2,018) (2,772) (4,790) (1,550) (2,150) (3,700) Losses/(gains) on settlements and curtailments** – – – – 785 785
Total 732 416 1,148 750 1,611 2,361
The Charity 2011 2011 2011 2010 2010 2010 ACRBS HtAFSS Total ACRBS HtAFSS Total £’000 £’000 £’000 £’000 £’000 £’000
Current service cost* 326 164 490 – 364 364 Interest on pension scheme liabilities 2,369 3,024 5,393 2,255 2,612 4,867 Expected return on scheme assets (1,978) (2,772) (4,750) (1,520) (2,150) (3,670) Losses/ (gains) on settlements and curtailments** – – – – 785 785
Total 717 416 1,133 735 1,611 2,346
*The current service cost includes the cost of administration expenses and PPF levies. **The loss relates to the cessation of future accrual and salary increases capped to inflation.
115 Notes to the financial statements For the year ended 31 March 2011
Analysis of actuarial loss recognised in the Statement of Financial Activities The Group 2011 2011 2011 2010 2010 2010 ACRBS HtAFSS Total ACRBS HtAFSS Total £’000 £’000 £’000 £’000 £’000 £’000
Actual return less expected return on pension scheme assets 886 (41) 845 6,942 7,132 14,074 Experience gain/(loss) arising on the scheme liabilities 122 (358) (236) 195 237 432 Gain/(loss) arising from changes in assumptions 2,630 4,089 6,719 (7,911) (12,435) (20,346) underlying the scheme liabilities
Gain/(loss) recognised in Statement of Financial Activities 3,638 3,690 7,328 (774) (5,066) (5,840)
The Charity 2011 2011 2011 2010 2010 2010 ACRBS HtAFSS Total ACRBS HtAFSS Total £’000 £’000 £’000 £’000 £’000 £’000
Actual return less expected return on pension scheme assets 876 (41) 835 6,786 7,132 13,918 Experience gain/(loss) arising on the scheme liabilities 110 (358) (248) 213 237 450 Gain/(loss) arising from changes in assumptions 2,578 4,089 6,667 (7,752) (12,435) (20,187) underlying the scheme liabilities
Gain/(loss) recognised in Statement of Financial Activities 3,564 3,690 7,254 (753) (5,066) (5,819)
History of experience gains and losses ACRBS The Group 2011 2010 2009 2008 2007 £’000 £’000 £’000 £’000 £’000
Present value of scheme liabilities (41,083) (43,418) (35,261) (35,455) (40,812) Fair value of scheme assets 36,166 34,127 26,027 29,760 30,345
Deficit (4,917) (9,291) (9,234) (5,695) (10,467)
Experience adjustments on scheme liabilities 122 195 (814) (933) 183 Experience adjustments on scheme assets 886 6,942 (5,787) (2,406) (77)
ACRBS The Charity 2011 2010 2009 2008 2007 £’000 £’000 £’000 £’000 £’000
Present value of scheme liabilities (40,268) (42,548) (34,576) (34,764) (40,017) Fair value of scheme assets 35,449 33,443 25,521 29,180 29,754
Deficit (4,819) (9,105) (9,055) (5,584) (10,263)
Experience adjustments on scheme liabilities 110 213 (842) (987) 87 Experience adjustments on scheme assets (876) 6,786 5,611 2,281 19
HtAFSS The Group and The Charity 2011 2010 2009 2008 2007 £’000 £’000 £’000 £’000 £’000
Present value of scheme liabilities (51,626) (53,756) (39,819) (44,169) (47,810) Fair value of scheme assets 40,662 38,529 29,876 38,190 38,052
(Deficit)/Surplus (10,964) (15,227) (9,943) (5,979) (9,758)
Experience adjustments on scheme liabilities (358) 237 (165) (62) (1,965) Experience adjustments on scheme assets (41) 7,132 (11,383) (3,566) 431
22. Taxation and charitable status
Age UK is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 part II Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. The Charity’s trading subsidiaries pay available profits to the Charity under gift aid. Its charge to corporation tax in the year is nil.
116 Notes to the financial statements For the year ended 31 March 2011
23. Company limited by guarantee
The liability of 19 members of the Charity is limited by guarantee to £1 each.
24. Operating lease commitments
Land & Buildings Other Land & Buildings Other 2011 2011 2010 2010 £’000 £’000 £’000 £’000
Within one year 859 20 747 30 Within two to five years 2,451 852 3,919 27 After five years 4,682 – 4,509 – 7,992 872 9,175 57
25. Contingent liabilities and Capital Commitments
The Charity had no contingent liability as at 31 March 2011. There were no capital commitments at 31 March 2011 (2010: £nil).
26. Holding Company
The ultimate controlling party of Age UK is the Board of Trustees collectively. Details of Age UK trustees are disclosed on page 121.
27. Related Party Transactions
Age UK has taken advantage of the exemption given by Financial Reporting Standard 8 from disclosing transactions with members of the same accounting group. All members of the Age UK Group are listed in note 12 (see page 107). Trustee emoluments and transactions are disclosed in note 9 (see page 103).
28. One-off integration costs
There were one-off non-recurring costs of £5,515 thousand (2010: £8,073 thousand) relating to activities required to create the new Age UK Group following the merger of Age Concern England and Help the Aged on 1 April 2009.
A summary of these costs were: 2011 2010 £’000 £’000
Redundancies 691 4,512 New website and brand creation 2,258 819 Property 1,838 – System integration 265 1,541 Legal and professional 137 791 Other 326 410 5,515 8,073
117 Notes to the financial statements For the year ended 31 March 2011
29. Subsidiary Undertakings
Through the year Age UK Group has carried out activities through five wholly owned trading subsidiaries. These five companies’ principal activities are detailed below. Age UK Enterprises Limited: Provide insurance services and other products predominantly aimed at older people. Aid-Call Limited: Provide personal alarm systems. Age UK Trading Limited: Provide Age UK with staffing and management for Age UK’s charity shops and the sale of bought-in goods. Also the provision of training courses that are sold either to companies, governmental bodies or general public. Age UK Services Limited: Provide Age UK with staffing for fundraising activities and supply of support services to Age UK. Intune Group Limited: To arrange insurance and other financial services predominantly aimed at older people.
Profit and loss account Age UK Age UK Age UK Aid-Call Intune Other Total Total Trading Services Enterprises Limited Group 2011 2010 Limited Limited Limited Limited £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Turnover 33,253 20,830 39,497 7,341 1,417 75 102,413 106,386
Expenditure (31,846) (18,795) (30,564) (7,121) (141) (130) (88,597) (93,939)
Profit (loss) for the year 1,407 2,035 8,933 220 1,276 (55) 13,816 12,447
Gift aid to parent (1,489) (2,041) (9,349) – (728) – (13,607) (11,520) Net inflow from merger: – – – – – – – 702 Age Concern England Net inflow from merger: – – – – – – – 36 Help the Aged
Profit (loss) retained and transferred to reserves (82) (6) (416) 220 548 (55) 209 1,665
Balance Sheet Age UK Age UK Age UK Aid-Call Intune Other Total Total Trading Services Enterprises Limited Group 2011 2010 Limited Limited Limited Limited £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Total fixed assets 109 – 1,968 2,377 – 651 5,105 4,565
Current assets 8,318 5,997 13,692 1,261 1,715 131 31,114 20,639
Total liabilities (7,859) (6,015) (14,951) (3,897) (859) (3,684)* (37,265) (25,284)
Net assets 568 (18) 709 (259) 856 (2,902) (1,046) (80)
*These liabilities are made up of intercompany debt that has been either written off or fully provided for elsewhere in the group prior to 1 April 2010.
118 Notes to the financial statements For the year ended 31 March 2011
30. Grants Receivable
The Charity received the following grants above £5,000 during the year:
Organisation Project Grant (£)
Advice Service Alliance Working Together for Advice 129,180
Austin and Hope Pilkington Trust Disconnected Mind 5,000
Balcombe Trust Project Kiran 32,721
Barking and Dagenham Council My Home Life 16,000
Big Lottery – Reaching Communities Essex Unite 213,529
Big Lottery – Wellbeing Fit as a Fiddle 3,081,219
Brighton and Hove County Council My Home Life 10,000
British Geriatrics Society Dr Barbara Rosario 13,061
British Geriatrics Society Dr Hall 40,486
British Geriatrics Society Dr Emma Fletcher 56,799
Cecil and Hilda and Lewis Charitable Trust Non-project specific 10,000
City Bridge Trust HandyVan Hackney 15,000
City Bridge Trust My Home Life 62,000
Civil facility Programme Civil Society Dialogue in the Western Balkans 105,083
Comic Relief Human Rights & Older People 27,162
Department for Communities and Local Government Tackling Race Inequalities 180,024
Department for International Development Engaging Older People in The Dev Debate 69,923
Department for International Development Strengthening Older People Advocacy in Russia 86,205
Department of Health Care Home Communities 22,235
Department of Health My Home Life 58,547
Department of Health Acorn – End of Life Care 83,028
Department of Health Strategic Partners 177,640
Department of Health Opportunity for Volunteering Programme 374,375
Derbyshire PCT My Home Life 7,777
Digital Outreach Limited Get Connected, Get Online 11,250
Dorset County Council My Home Life 5,089
East London PCT My Home Life 5,333
EIDHR Preventing Elder Abuse in Ukraine 36,639
Enfield County Council My Home Life 16,000
Essex County Council My Home Life 48,952
HMRC Planning for Retirement 124,999
Home Office Older People and Crime 202,583
ILC UK LGBT Intergenerational Volunteer Programme 50,000
Jane Hodge Foundation HandyVan Cardiff 6,000
Joseph Rowntree Foundation My Home Life 79,825
Kathleen Hannay Memorial Charity Disconnected Mind 20,000
Kent County Council My Home Life 38,241
119 Notes to the financial statements For the year ended 31 March 2011
Organisation Project Grant (£)
Leeds County Council My Home Life 5,000
Major Raymond Leslie Percy Charitable Trust Non-project specific 10,230
Medway County Council My Home Life 16,795
Mr P. V. Collings 1977 Settlement Non-project specific 94,683
Muslim Aid Winter Warmth Grants 20,000
Newham Council My Home Life 5,333
Newham PCT My Home Life 5,333
Nominet Trust Reach for IT 184,580
Peacock Charitable Trust Research into Ageing 10,000
Redbridge Council My Home Life 16,000
Redfern Charitable Trust Neighbourhood Wardens 86,500
Roger De Haan Research into Ageing 52,500
Sir Jules Thorn Charitable Trust Men in Sheds 155,000
Stobart Newlands Charitable Trust Non-project specific 8,000
The Adint Charitable Trust Seniorlink 10,000
The Catatania Trust Non-project specific 5,000
The Cheruby Trust Non-project specific 5,000
The Cotton Trust Pakistan Emergency Appeal 5,000
The D. G. Charitable Trust Non-project specific 20,000
The Edith Jamieson Charitable Trust Non-project specific 18,418
The Eveson Charitable Trust Good Day Service in Birmingham 10,000
The Exilarch's Foundation Non-project specific 150,000
The Foster Wood Foundation Non-project specific 10,000
The Hamer Charitable Trust Non-project specific 10,000
The John Coates Charitable Trust Non-project specific 5,000
The Jordan Foundation Non-project specific 5,000
The Kirby Laing Foundation Disconnected Mind 10,000
The Miss R. C. R. Angel Charitable Trust Non-project specific 9,405
The Mrs Joyce Lomax Bullock Charitable Trust Non-project specific 5,600
The Mulberry Trust Winter Warmth Grants 10,000
The Pearson Family Third Settlement Non-project specific 15,000
The Pearson Family Third Settlement Research into Ageing 15,000
The Rosetree Trust Dr Wenner 7,000
Tower Hamlets Council My Home Life 16,000
University of Edinburgh My Home Life 5,000
Vitol Charitable Foundation Winter Warmth Grants 8,780
V-match LGBT Intergenerational Volunteer Programme 23,142
Wolfson Foundation Capital grant – AC Lambeth 62,477
120 Age UK
Royal Patron His Royal Highness the Prince of Wales KG KT GCB
Trustees, Officers and Professional Advisers Dianne Jeffrey CBE DL (Chairman) Patrick Cusack Dr Bernadette Fuge Jeremy Greenhalgh Timothy Hammond Chris Hughes Glyn Kyle MBE Professor Brendan McCormack Jane Newell OBE JP Michael Vincent Pauline Walsh Jane Wesson Professor John Williams Hilary Wiseman RD JP James Wright CBE DL
Principal officers of Age UK Group Chief Executive Tom Wright CBE Fundraising Director Paul Farthing Managing Director of Retail, Trading and Training Hugh Forde People and Strategy Director Stephanie Harland Services Director Heléna Herklots Group Marketing Director Duncan Lewis Charity Director Michelle Mitchell Managing Director of Age UK Enterprises Gordon Morris Group Finance Director Charles Scott
121 Professional advisers Bankers Barclays Corporate 1 Churchill Place London E14 5HP
Internal auditors PricewaterhouseCoopers 80 Strand London WC2R 0AF
External auditors KPMG LLP 1 Forest Gate Brighton Road Crawley RH11 9PT
Solicitors Farrer & Co LLP 66 Lincoln’s Inn Fields London WC2A 3LH
Investment managers Sarasin & Partners LLP Juxon House 100 St Paul’s Churchyard London EC4M 8BU BlackRock (until October 2010) 33 King William Street London EC4R 9AS
Age UK registered office From 1 September 2011 Tavis House 1–6 Tavistock Square London WC1H 9NA
122
Tavis House 1–6 Tavistock Square London WC1H 9NA 0800 169 80 80 www.ageuk.org.uk
Age UK is a charitable company limited by guarantee and registered in England (registered charity number 1128267 and registered company number 6825798). The registered address is Tavis House, 1–6 Tavistock Square, London WC1H 9NA. Age Concern England (registered charity number 261794) and Help the Aged (registered charity number 272786), and their trading and other associated companies merged on 1 April 2009. Together they have formed the Age UK Group, dedicated to improving the lives of people in later life. The three national Age Concerns in Scotland, Northern Ireland and Wales have also merged with Help the Aged in these nations to form three registered charities: Age Scotland, Age NI and Age Cymru. ID10611 11/11