Ninety-seven jobs are at risk after an Age UK charity announced that it will close at the end of this month due to “severe financial challenges”.

Age UK Herefordshire & Worcestershire, which supports older people in the area, will close on 30 September.

The charity told Third Sector that its 97 staff members are at risk of redundancy, but approximately 20 of them could be eligible for Transfer of Undertakings (Protection of Employment) transfer, pending agreement to transfer contracts.

In a statement, the charity said: “Regretfully, due to severe financial challenges, including rising operating costs and diminishing funding opportunities, it is no longer viable for the charity to continue offering services.”

The news comes after Third Sector learned last week that an Age UK charity in York is having to close its day club services at the end of the month, due to a council contract coming to an end.

Julia Neal, chief executive of Age UK Herefordshire & Worcestershire, said: “As a charity which makes a significant contribution to the work of the wider health and care system, we have continued to support some of the most vulnerable older people at a time when they most need that support. 

“However, this commitment has meant that we have become increasingly vulnerable to the challenges faced by providers delivering commissioned services.”

She told Third Sector that some contract funding had been cut despite increased demand for services, adding: “Contracts that have been in place for a number of years with a very small annual uplift meant that they had been cut in real terms, which was challenging.”

Neal said the charity had also experienced short-term extensions with late notice rather than retendering for the service, which “meant limited confidence in future funding and difficulty planning”.

According to its latest accounts, the charity recorded a total income of £1.6m and expenditure of £1.7m in the financial year to the end of March 2023.  

Last year the charity supported more than 15,000 older people across its two counties and helped older people access £1.4m in previously unclaimed benefits. It also conducted 371 free home energy checks and assisted 1,086 people in returning home safely after a hospital stay.

Neal said: “Our number-one priority is ensuring that older people in the area are supported in the best way possible, and we are working hard to facilitate a smooth transition to alternative support.”

The charity is in the process of contacting the people it supports to provide guidance and alternative arrangements.

It said that it is working with Age UK brand partners, other local charities and the national Age UK charity to make sure its clients can still receive the support they need.

Neal said: “There are two other Age UK brand partners operating within Herefordshire and Worcestershire and, where appropriate, we are redirecting clients. We are hoping that our two main contracts will also be transferred.”