Northern Rock Foundation

£1.4 million awarded to help young people; £1 million in grants to help older people; and a new programme for 2010, set up in response to the impact of the recession in the region, to help people with financial problems which includes £1.47 million dedicated to increasing advice for people in debt, are just some of the impressive achievements contained in Northern Rock Foundation?s Annual Review 2009 which has just been published.

Charities and community organisations up and down the region from Berwick to Redcar in the North East and Workington to Barrow-in-Furness in Cumbria have benefitted from Foundation grants including national charities working in the region like Fairbridge which works with young people and local charities like CarlisleEden Mind in Cumbria which works with people with mental health problems. Altogether the Foundation gave 185 grants totalling over £11 million.

Penny Wilkinson , Chief Executive of the Foundation, says: ?The Foundation is a small organisation that has made a big impact since it was set up by Northern Rock, and has become part of the culture and identity of the region. We are committed to continuing our work and developing our role.?

Chairman of the Foundation Alastair Balls says: ?Northern Rock Foundation continues to fulfil its mission to help and resource those organisations in the North East and Cumbria dedicated to helping the most vulnerable and disadvantaged. With the Foundation?s support, many of these organisations are able to look forward more positively and the future of thousands of people they support is much brighter.?

Northern Rock Foundation has a budget of £15 million in 2010 through the three year funding arrangement for the Foundation, put in place by the government when Northern Rock was taken into temporary public ownership in 2008.

Gary Hoffman, Chief Executive of Northern Rock, says: ?We are very pleased to support the excellent work of the Foundation in the region and to be making a £15m contribution in 2010 as part of our agreed commitment. We work well together and giving something back to the region is an important part of what Northern Rock stands for.

?It is the Company?s intention to return to the private sector in the future but at present we remain in public ownership, supported by the taxpayer, and we must continue to carefully consider future funding arrangements in this context.?

Alastair Balls confirmed this week that the Foundation, through careful management of its funds, has reserves which mean that it can continue to operate after the end of 2010, but emphasised that securing on-going funding will be important to protect the long term future of the Foundation. He said: ?We believe our activities in the region can strongly support the community values and objectives of Northern Rock. Consequently, we are in discussion with their management team to explore how we can work together in the future. Northern Rock?s continuing support, in tandem with our own resources, would ensure that the Foundation can make a significant contribution to the region?s welfare for many years to come.?

<<Click here to download a copy of our Annual Review>>

Ends

Northern Rock Foundation is a charity and company limited by guarantee with an independent Board of Trustees that makes all decisions on governance, finance and policy. The Foundation aims to tackle disadvantage and improve quality of life in North East England and Cumbria. The Foundation?s work is delivered by a professional staff team of 12 based in Newcastle upon Tyne.

The Foundation was established when Northern Rock demutualised in 1997. Up to December 2007, the bank gave, by covenant, 5% of its annual pre-tax profits to the Foundation, totalling more than £190 million. The Foundation will receive a minimum of £15m a year in 2008, 2009 and 2010 from Northern Rock, as part of the arrangement under which the bank was taken into temporary public ownership. Maintaining this arrangement is a condition of any sale of the bank in that period. The Government has asked the bank?s board to identify a viable long-term future for the Foundation