A Swansea-based charity is urging businesses to rethink how they handle surplus stock, following a UK Budget change that makes it cheaper to donate goods than destroy them.
Since 26 November, companies no longer have to pay VAT when donating eligible items to registered charities — a move that removes a long-standing financial barrier to giving.
Local charity Faith in Families, which runs Wales’s first Multibank, Cwtch Mawr, says the change could unlock thousands of items for families in need across South Wales.
To mark the shift, the charity has launched a new campaign: “Surplus stock? Cwtch it, don’t crush it.”
Cwtch Mawr redistributes brand-new items including clothing, bedding, toiletries, baby supplies and school essentials to families facing poverty, crisis or hardship.
Speaking after the VAT change came into effect, Jon Waite, Warehouse and Facilities Manager at Cwtch Mawr, said:
“Companies tell us they want to donate more, but VAT made it harder than disposing of stock. This change removes that barrier completely. Surplus stock can now flow straight into Welsh homes instead of waste streams.”
Cwtch Mawr says it already works with major brands including Amazon, Sofidel, Unilever and L’Oréal, and is now looking to expand its network of partners.
In the past year, the charity says it has distributed more than one million brand-new items through 127 partner organisations. An independent evaluation commissioned by Faith in Families estimates that every £1 invested generates £5.90 in social value, with the Swansea contribution alone valued at £27.7 million.
Faith in Families says the new VAT rule makes donation the most cost-effective option for businesses holding stock due to returns, overproduction, discontinued lines or damaged packaging.
Businesses interested in donating can contact the charity via:
📧 cwtchmawr@faithinfamilies.wales
🌐 faithinfamilies.wales
Discover more from Swansea Bay News
Subscribe to get the latest posts sent to your email.
