Brexit latest: Charities could lose £250m every year when Britain leaves the EU, study shows

UK charities look set to lose more than £250 million a year in EU funding because of Brexit, a new study revealed.

Hundreds of organisations working in sectors such as overseas aid, research and conservation are likely to be hardest hit unless the Government replaces the revenue stream, experts have said.

Research by the Directory of Social Change (DSC) found that a no- deal Brexit with the EU could see "an even sharper shock to the system" if currently awarded funds are suddenly cut off.

Co-author of the research, Daniel Ferrell-Schweppenstedde, said: "It's nearly 2018 - but the future of EU funding after Brexit remains extremely murky.

"Government needs to clarify the situation urgently, because uncertainty is already affecting budgetary outlooks for many charities across the sector.

"Trustees and executives are being left in limbo, not knowing the future of current funding and needing to find alternatives which are thin on the ground. As funding plans which looked secure for years threaten to dissolve almost overnight, the threat of disruption to vital services grows day by day."

The DSC has called on the Government to make clear what level of funding for charities will be maintained throughout the Brexit process, including a detailed definition of the conditions under which present EU funding levels will be guaranteed.

The charity also wants ministers to set out a "clear and credible commitment" on how EU funding will be replaced in full after Brexit.

The DSC study pointed out that charities were not included among the 58 sectors that have been consulted on the impact of Brexit.