Chief Executives and company directors may be at greater risk of facing sudden and unexpected poverty, according to surprising new figures from welfare charity Elizabeth Finn Care.
The organisation, which offers financial and emotional help to those whose careers have been interrupted or ended by personal tragedy, reports that people who are, or were formerly, Chief Executives or company directors make up the 5th largest group they help.
Elizabeth Finn Care currently helps around 5,000 people in the UK each year whose working lives have been interrupted or ended by physical or mental illness, family breakdown or job loss, or who are struggling to survive on a low income in retirement. Where possible, their aim is to help people get back on their feet and to help them return their valuable skills to the workplace.
Former CEOs and company directors make up a high proportion of this number – people who’ve found themselves living below the breadline after things like injury, sickness or depression have forced them to leave work. Economic factors also play their part.
A downturn in the economy can force a small business to fail and if that business is secured on the family home, that too can be lost.
Small businesses - sole proprietors and partnerships - make up just under half of all businesses in the UK. But their numbers are falling, by over 5 per cent last year alone, leaving many families vulnerable to poverty and unemployment .
These business people are among the UK’s four million ‘hidden poor’ who don’t fit the traditional stereotypes of poverty. More than half of all those in poverty are homeowners, who often keep their money problems hidden from those around them. While the numbers of children and the elderly living in poverty have fallen with the help of long-standing Government and public focus, the ‘hidden poor’ remain largely unrecognised as they make up an increasing proportion of those living in poverty.
Many of those finding themselves in such circumstances will have the support of friends and family, but there are many without that network behind them, and that’s where Elizabeth Finn Care steps in.
Marianne ten Kate, spokesperson for the charity, believes there could be thousands more formerly successful CEOs and company directors in need of support, but many are reluctant to come forward, or simply don’t realise there’s any help out there for them. “We’re working hard to reach those who have found themselves in financial and emotional difficulties, but understandably people are often too embarrassed to ask for help,” she said. “It’s important for us to raise awareness of the services we provide, so people know there is somebody they can turn to.”
The help provided by Elizabeth Finn Care is there to fill the gaps left by statutory benefits. After making sure an applicant is receiving his or her full entitlement of state benefits, the charity will help to identify areas that aren’t covered. Their financial support varies depending on individual needs from single gifts for essentials, like a replacement fridge, or household repairs, to longer-term allowances, helping them to rebuild their lives. As well as helping financially, the organisation’s work also gives emotional support.
“Living in poverty isn’t just about money,” Marianne ten Kate explains. “Suddenly struggling to make ends meet can leave a former breadwinner feeling worthless and rejected. When we offer our support we are saying to that person, perhaps for the first time in a long while, “we value you and we want to hear what you have to say”. That in itself can bring about a profound change in a person’s life.”
Alex, 47 from London, was a Chief Executive of a charity, but a breakdown brought on by years of overwork, plus severe sight loss caused by untreated glaucoma, having always put his career first, left him suddenly unable to work and on the breadline.
“People don’t ever think it will happen to them,” Alex explains. “When you’re working and living on a reasonable salary you don’t really worry about the electricity bill or seeking out reduced bargains in the supermarket. But when you literally have to count every penny, it gets incredibly frightening. Elizabeth Finn provides me with a monthly allowance; this helps me to meet everyday costs as well as unexpected expenses – things like the boiler breaking down, or a new pair of spectacles.”
Alex’s old confidence is now returning, and he is beginning to rebuild his life in several ways, one of which is helping to raise awareness of the work of Elizabeth Finn Care.
For more information about Elizabeth Finn Care, and to find out how you can support the charity’s work, visit www.elizabethfinncare.org.uk
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Notes to editors:
· Elizabeth Finn Care is here to help the four million adults in the UK who suddenly and unexpectedly find themselves living in poverty who may qualify for their help
· Support varies from single gifts to fund essentials like a fridge or household repairs (items not covered by statutory benefits), to ongoing financial support to help people start rebuilding their lives, or get the care they need
· People in poverty have an income that is less than 60% of the national average, so, for example, a single working age adult would be considered to be poor if she or he was living on £100 per week once council tax, water charges and rent or mortgage have been deducted. This means £100 for everything else including, food, clothing, fuel, transport costs, household items and saving for the future.
· Recent research commissioned by Elizabeth Finn Care, and conducted by Harris Interactive, showed that while nearly one in five people in the UK are living in poverty, three quarters of the population say they don’t know anybody in need
· In addition to Chief Executives and company directors, the list of those helped by Elizabeth Finn Care is long and varied and includes:
o Nurses
o Teachers
o Social workers
o Engineers
o PA/administrators
o Farmers
· For more information, please contact Anna Mayall or Kirsty Lee on 020 7700 6952 or email anna@amazonpr.co.uk
