A leading youth charity in Scotland, Young Enterprise (YE) Scotland, has been forced to make 17 staff redundant after a failure to secure funding from the Scottish government.
While emergency funding has helped the organisation stave off closure, the staffing cuts come as a significant blow, particularly in the run-up to Christmas.
For over three decades, YE Scotland has provided enterprise education to young people, relying on support from the Scottish government, trusts, and foundations.
However, a shift in the government’s funding process left the charity unable to secure vital grants.
The organisation’s chief executive, Emma Soanes, expressed mixed emotions about the emergency funding, acknowledging the relief of avoiding closure while lamenting the redundancies.
She described the loss of the charity’s primary income stream as “enormously unsettling and upsetting” and noted that the charity now faces the challenge of refocusing its programmes with a reduced team.
The funding gap arose in July when the Scottish government replaced its existing grant process with a competitive bidding system.
This new scheme allocated £829,346 among seven organisations, but YE Scotland was unsuccessful in its application. Instead, the charity was granted £285,000 in emergency funds to cover its immediate costs.
Delays in the government’s grant payments over the past two financial years exacerbated the situation. These delays impacted YE Scotland’s ability to submit timely audited accounts, which in turn hindered its chances of securing additional funding.
Despite the financial strain, YE Scotland has continued to deliver impactful programmes. In the past year, the charity supported over 18,000 students in schools and colleges, offering enterprise education to prepare young people for the workforce or further education.
Additionally, more than 1,000 students have earned an SCQF Level 6 qualification in enterprise over the last three years, equipping them with critical skills for their future careers.
A spokesperson for the Scottish government acknowledged the challenging situation faced by YE Scotland and its employees. The statement highlighted efforts to mitigate the financial crisis by providing £285,000 for two key projects, ensuring the charity’s immediate survival.
YE Scotland now faces a period of adjustment as it works to prioritise programmes within its reduced capacity. While the charity’s survival offers hope, the redundancies underscore the precarious funding landscape for organisations delivering vital services to young people in Scotland.
