The education and training charity Catch22 is exploring a merger with the youth work charity Redthread, the organisations have announced.

Redthread, which works with children and young people in hospitals and other health settings who have been affected by violence and exploitation, is considering merging into Catch22.

The charities said the move would ensure Redthread’s services could stabilise and grow, with the charity’s commitment to children and young people remaining the primary focus.

Redthread employees are expected to transfer into Catch22 and deliver its programmes as a branded service, the charities said.

Redthread said it had been experiencing “major financial challenges” because of the external funding landscape.

Decisions about people and premises will be made during a consultation period, the charities said, adding that more updates would be provided by mid-August.

The charities said they were “fully confident” that working together would achieve a greater impact for vulnerable young people.

Redthread had an income of £3.7m in its latest accounts for the financial year ending 31 March 2023, down from £4.1m the previous year.

Catch22 recorded an income of £53.5m in its latest financial year ending 31 August 2023.

Redthread and Catch22 declined to provide latest employee numbers but they have 70 and 1,120 employees respectively according to their entries on the Charity Commission’s online register.

The charities said no decisions had been made on any potential job losses.

“The two organisations have strongly aligned missions and values,” they said.

“Catch22’s work focuses on children's social care and child exploitation, employment and training, criminal justice, and education and health, making them a strong partner for Redthread.

“The two organisations also already work in partnership, influencing policy and co-delivering The Social Switch Programme, which helps protect young people from online harms.”

Lucie Russell, chief executive of Redthread, said: “Catch22’s values are closely aligned with our own and therefore the proposal to merge adds so much value and stability to our services and our ability to evolve and grow them. 

“Redthread and Catch22 are absolutely committed to ensuring frontline services continue with minimal disruption while the transition is taking place and beyond.

“What matters more than anything is that we’re here for our beneficiaries, supporting them with our high-quality service that transforms lives.”

Naomi Hulston, chief executive of Catch22, said: “We’ve worked closely with Redthread for a long time and know how well respected they are within the sector and how impactful – and much-needed – their services are.

“Levels of youth violence continue to rise and there are many young people who are reliant on the vital support that Redthread provides.

“We’re excited about Redthread becoming part of Catch22 and using our collective strength to support even more vulnerable children and young people. 

“The motivation for merging is to make sure this vital work doesn’t stop; and it is that motivation that will ensure it’s a success.”