Insurance Industry’s £104 Million Covid-19 Fund Leaves Lasting Impact on UK Charities and Communities
Five years after the onset of the pandemic, a new report reveals the significant and enduring impact of the insurance and long-term savings industry’s collective response to the crisis. The Association of British Insurers’ (ABI) report, “From Crisis to Impact: What the Covid-19 Support Fund Delivered,” details how the £104 million Covid-19 Support Fund provided a vital lifeline to charities and individuals across the UK.
The Fund, established in May 2020 by the ABI on behalf of the sector, swiftly mobilized £84 million in donations, supplemented by a further £20 million from the Department of Culture, Media and Sport. This substantial sum has bolstered the work of 17 national charities and over 100 smaller organizations over the past five years.
Charities Faced Unprecedented Challenges
As the pandemic took hold, charities experienced a dramatic decline in income due to the closure of shops and the cancellation of fundraising events. Simultaneously, demand for their services surged. The Fund initially prioritized immediate crisis response, allocating £20 million to the National Emergencies Trust (NET). The NET collaborated with local Community Foundations to identify those most in need and deliver targeted assistance. A primary focus was providing essential resources, including hot meals for vulnerable individuals. Crucially, the Fund also addressed the growing issues of social isolation and mental health, offering emergency counseling services.
Beyond immediate relief, £2.5 million was directed to Business in the Community’s National Business Response Network, facilitating connections between businesses and local charities, community groups, and schools. This network provided critical support, including IT devices for students struggling with remote learning, assistance for organizations supporting victims of domestic abuse, and accommodation for individuals experiencing homelessness.
Targeted Support for Vulnerable Populations
Throughout the summer of 2020, the Fund shifted its focus to longer-term needs, making 15 significant donations aimed at supporting those disproportionately affected by the pandemic. These donations specifically benefited individuals with dementia, unpaid carers, disabled people, those impacted by domestic abuse and mental health conditions, and vulnerable populations requiring retraining.
The impact of the Fund has been far-reaching, touching the lives of millions. Many of the services it supported continue to operate today. Action for Children, for example, utilized funding to develop “Sidekick,” a unique digital advice service designed for young carers. Similarly, the Alzheimer’s Society launched ‘Companion Calls,’ a groundbreaking volunteer service for individuals affected by dementia that remains active.
Recognizing the ongoing financial strain caused by the pandemic and the subsequent cost-of-living crisis, the Fund also contributed to the Financial Times’ Financial Literacy & Inclusion Campaign (FLIC). This donation facilitated the creation of accessible learning resources aimed at improving financial literacy among low-income workers, carers, service personnel, and NHS staff, reaching millions through social media.
“The pandemic galvanized the entire industry to work together to create the Covid-19 Support Fund,” stated a senior official with the ABI. “This sector-wide response grew into one of the UK’s largest private-sector pandemic relief initiatives, and provided a vital lifeline for charities facing huge drops in income and skyrocketing demand. From delivering hot meals to vulnerable people and providing IT devices to children struggling to join on-line lessons, to launching innovative volunteer services and new digital support, the Fund supported hundreds of projects across the UK whose benefits continue to be felt today. It is an inspiring example of the power of our industry when it pulls together to drive change.”
Graeme Trudgill, Chief Executive of the British Insurance Brokers’ Association, emphasized the collaborative spirit of the initiative, noting, “This was a great example of the insurance sector coming together to support those in need. It is right to set out how the numerous charities and support organisations as well as individuals affected by the pandemic were helped by the Covid 19 Fund.”
Christopher Jones, Chief Executive of the International Underwriting Association, added, “The IUA and its member companies were keen to support the insurance industry’s funding of charitable initiatives as the Covid-19 pandemic hit. It is good to see that these efforts have had a long-term impact and are continuing to provide care and assistance for those in need.”
The Covid-19 Support Fund stands as a testament to the power of collective action, demonstrating the insurance industry’s commitment to supporting communities during times of unprecedented challenge and leaving a legacy of lasting positive change.
