An award-winning Sheffield training provider, which has upskilled over 10,000 people and countless local businesses over 20 years, has warned its 23 staff they are facing redundancy.
The Source Skills Academy is fighting to find a solution to save as many jobs as possible and ensure its current training of 169 apprentices and 23 learners on Study Programmes can continue.
The ongoing impact of the pandemic, including a long-winded and drastically reduced ‘loss of income’ settlement from its Business Interruption insurers, the economic downturn, which has resulted in a reduction in apprenticeship starts, and the cost of living crisis have hit the business hard.
CEO Tricia Smith said: “After considering all options, it is with great sadness we have concluded there is a risk we will be unable to continue to provide work for our employees and may have to make compulsory redundancies across all departments, with everyone likely to be at risk.
“Having to give this news to our talented and hardworking team, and be considering the closure of a charity which has transformed thousands of people’s futures is devastating and we are exploring ways of saving as many employees as we can.”
The registered charity which launched in 2003 reinvests its profits to create a self-sustaining organisation which supports local communities.
The Source has helped 5,642 apprentices gain qualifications, changed the lives of 531 NEETs who didn’t achieve at school or college and upskilled 4,099 workers at local businesses, including award-winning AESSEAL in Rotherham and B.Braun Medical in Chapeltown.
In 2022 it achieved its best-ever apprenticeship success rate, an 11% increase on the previous year and, in 2023 was voted Training Provider of the Year in the South Yorkshire Apprenticeship Awards.
A Business Interruption Insurance policy was in place to protect the work of the Source and its staff.
Tricia added: “It should have mitigated losses we sustained during the Covid pandemic, but frustratingly it took insurers over three years to settle our claim and the amount received was less than 20 per cent of the income lost. It has left a huge hole in our finances.
“We know many other businesses have been similarly affected by the insurance industry. Sadly for our charity this has led us to an unsustainable position ”
A staff consultation process will run during December with representatives of all affected employees.
