30th May 2026
Prior to its cessation, Steps to Work supported thousands of individuals through employment, skills, training and community programmes over many years. The charity delivered significant social value across the region and played an important role in helping individuals access employment opportunities, develop skills and improve their life chances.
The Trustees remain proud of the positive impact the organisation had on individuals and communities and continue to support opportunities for the legacy of that work to be carried forward wherever possible. Whilst their immediate responsibility is to ensure the orderly conclusion of the liquidation process, they remain committed to the values and objectives that underpinned the charity’s work and would welcome the continuation of initiatives that promote employment, skills development and community benefit.
The organisation faced long-standing financial challenges that ultimately led to its cessation of trading. The charity’s operating model relied heavily on financial support from its trading subsidiary, Starting Point Recruitment (SPR), whose profits were used to offset annual operational deficits and support charitable activities. Whilst this arrangement enabled the charity to continue delivering services, it also masked underlying structural challenges, including a high fixed-cost base and losses arising from legacy contracts.
In September 2023, SPR were precluded from retendering for a Master Vendor contract with Walsall Council, a contract valued at approximately £14.5 million per annum and a significant source of revenue. The contract transferred to Opus People Solutions, a company owned by Suffolk County Council, together with the associated workforce under TUPE arrangements. The loss of this contract had a profound impact on the group’s financial position and significantly reduced its ability to support the charity’s operations.
Historically, SPR had contributed approximately £4.65 million towards the charity’s activities since 2004, including £2.64 million during the four years preceding the cessation of trading. Following the loss of the contract, the charity’s underlying financial challenges became increasingly difficult to sustain.
The financial position continued to deteriorate, with STW reporting trading losses of approximately £1.02 million in FY23 and £1.83 million in FY24. SPR itself recorded a trading loss of approximately £0.44 million in FY24. By the commencement of insolvency proceedings, the group faced combined unaudited losses of approximately £2.27 million for FY24 and a negative group balance sheet position of approximately £302,000.
From October 2023 onwards, the Trustees, the refreshed Senior Leadership Team at the time, and professional advisers worked extensively to explore all viable options to stabilise and restructure the organisation.
A significant programme of transformation was undertaken, including:
Throughout this period, the Trustees worked tirelessly to seek solutions that could secure the charity’s future, protect jobs where possible and maintain services for beneficiaries. Multiple restructuring options were explored, supported by professional financial and insolvency advice. A number of forensic financial reviews were also undertaken to better understand the organisation’s position and identify potential recovery options. Unfortunately, despite these considerable efforts, the financial challenges facing the organisation proved insurmountable.
The position was further exacerbated in August 2024 by a £1 million damages claim from a former IT supplier, creating additional uncertainty and pressure on an already fragile financial position.
Following extensive consultation with professional advisers and careful consideration of the charity’s financial circumstances, the Board of Trustees concluded that continued trading was no longer viable.
On 26 September 2024, the Trustees made the difficult decision to cease trading in order to prevent further losses and to fulfil their duties to creditors and stakeholders. Trading formally ceased at the close of business on 27 September 2024.
The Trustees believe that the failure of Steps to Work resulted from a combination of long-standing structural financial challenges, losses associated with legacy contracts and the loss of a major income-generating contract within its subsidiary, which had historically enabled the charity to offset significant operational deficits.
It has now been approximately 18 months since Steps to Work ceased trading and entered liquidation.
Since that time, the Trustees have remained committed to supporting the orderly wind-down of the charity’s affairs and working constructively with the appointed liquidators to assist with the completion of the process. Throughout this period, the Trustees have continued to engage with professional advisers and have considered a range of forensic financial reviews and reports to ensure that decisions have been informed, transparent and taken in the best interests of creditors and stakeholders.
While the liquidation of a long-established organisation is inevitably complex, steady progress has been made in addressing a range of legacy matters and ensuring that the charity’s remaining affairs are dealt with appropriately and responsibly.
One significant development has been the recovery of more than £1 million in pension-related funds, representing a substantial asset of the estate. This recovery has increased the funds available within the liquidation and supports the ongoing objective of maximising returns for creditors wherever possible.
Throughout the process, efforts have focused on preserving records, responding to requests for information, supporting professional enquiries and ensuring that matters are progressed in a transparent and responsible manner. The Trustees have worked closely with the liquidators and their professional teams, providing ongoing assistance wherever required to help advance the process and resolve outstanding matters.
The Trustees recognise the importance of bringing the liquidation to a conclusion as efficiently as possible whilst ensuring that all statutory obligations are fulfilled and that stakeholders’ interests are properly considered. Work continues with the liquidators to resolve remaining issues and progress towards the finalisation of the estate.
The Trustees would like to place on record their appreciation to the liquidators for their professionalism, guidance and support throughout what has been a complex and challenging process. Their assistance has been instrumental in progressing the liquidation and safeguarding the interests of creditors.
The Trustees would also like to thank former employees, partners, beneficiaries, creditors and stakeholders for their patience, understanding and cooperation throughout this period. They remain committed to supporting the completion of the liquidation process and bringing the affairs of the charity to an appropriate conclusion.