An organisation that supports non-profit agencies has urged the Government to commit to stronger investment in the social sector.

In a statement released ahead of the Budget, the Non-Profit Alliance of Bermuda said the move would guarantee the creation of a “healthier, more equitable” economy.

It came days before the Progressive Labour Party government presents its budgetary allocation plans for the fiscal year.

The Budget Statement will be read in the House of Assembly on Friday.

A spokeswoman said yesterday that the Government was committed to supporting the island’s third sector, and recognised the part played by non-profit agencies in addressing societal challenges.

David Burt, the Premier and Minister of Finance, announced earlier that the Government will deliver a surplus in the Budget beyond that yielded during 2024-25, with driving down prices being a top priority.

Nicola Paugh, the executive director of the Non-Profit Alliance, which represents the interests of the third sector, said Bermuda has a long history of underinvestment in public social programmes.

“This has left non-profits to fill important gaps,” she added. “Today, these organisations are stretched — facing rising demand while finding it harder and harder to raise the funds they require to meet community needs.

“If we are serious about building a healthier, more equitable Bermuda, the Government must commit to stronger investment in the social sector.

“That includes building a culture of prevention, establishing a more robust social safety net and supporting the non-profit organisations that do this critical work every day.

“This is what we hope to see reflected in the Government’s upcoming Budget.”

Dr Paugh said that the organisation welcomed the Premier’s support in the Throne Speech last month for critical issues such as education reform, development of trade skills, as well as plans to address violence and antisocial behaviour through early intervention and prevention.

The alliance also welcomed Mr Burt’s commitment to expanding youth counselling to address substance abuse.

She said the Government also signalled its intention to work more collaboratively with the non-profit sector to address serious and longstanding social issues.

They include domestic violence, multigenerational trauma and homelessness.

Dr Paugh said: “This collaborative approach is encouraging, and we hope it will be matched by the necessary financial resources to support the non-profits that are already providing vital social services across the island.”

In key observations of the Government’s plans, Dr Paugh highlighted measures such as the use of revenue from the corporate income tax to reduce or eliminate taxes that contribute to the high cost of living.

She also highlighted a proposal by the Government to create a sovereign wealth fund, which would be focused on debt reduction and long-term economic stability.

Dr Paugh said: “These are critically important measures.

“However, with the anticipation of increased revenue through the CIT, we hope to see increases to government grants allocated to the third sector.”

She said the Budget presented an annual opportunity for the Government “to show through the dollars” where its commitment lies.

Bermuda faces serious health and social challenges, Dr Paugh noted, and she said the distance continues to grow between people with abundant resources and those who struggle to make ends meet.

“The cost of living is unsustainable for many families,” she added.

While she could not provide official data on poverty rates, Ms Paugh said that Narrative Research estimated that between 17 and 33 per cent of the island’s population were living in poverty, based on Omnibus Survey data.

She added that economist Craig Simmons had documented what he viewed as two decades of widening wage inequality between white and blue-collar workers.

In addition, she said, the 2016 Census found that only 30 per cent of Bermudians held a university degree, compared with 52 per cent of non-Bermudians.

Such a reality places many Bermudians at a disadvantage in accessing high-wage, knowledge-based employment, Dr Paugh added.

In addition, she said, the island has the highest per-capita healthcare spending in the world, yet health outcomes lag behind other high-income countries.

Dr Paugh added: “We face high rates of cancer, diabetes, end-stage kidney disease and obesity.

“As our population ages, more seniors will require costly home or residential care, increasing the pressure on an already strained health and social care system.”

Moreover, she said, many of the island’s most burdensome diseases are preventable.

On the domestic front, Dr Paugh said that the Bermuda Adverse Childhood Experiences Study, published in 2020, painted “a troubling picture”, where two thirds of the respondents reported being physically harmed by a household member during childhood.

More than a fifth of the respondents said they had been cut with an object while nearly a fifth had witnessed someone being stabbed or shot.

Further, she said, nearly one third witnessed someone being threatened with a weapon.

She said a recent study on youth mental health found that more than 30 per cent of adolescents in Bermuda experienced moderate-to-severe symptoms of depression or anxiety.

The finding was five to six percentage points higher than post-pandemic global averages, Dr Paugh noted.

“It is not acceptable for Bermuda to be at the cutting edge of international business while falling so far behind in health and social outcomes,” Dr Paugh added.

In the Throne Speech last month, the Government made a commitment to support Bermudians “through all stages of life”.

It said: “The approach will be people-centred, focused on ensuring that every Bermudian has the tools and opportunities not just to survive but to thrive.”

A government spokeswoman encouraged residents yesterday to be reminded of pledges made in that speech.

She added: “We are creating an affordable Bermuda for all, introducing housing and upgrading our infrastructure, sustaining and growing our economy, transforming healthcare coverage and ensuring accessibility, and promoting a more responsive government.”

The spokeswoman said: “We are committed to supporting our third sector as we recognise that they are critical partners in addressing some of the societal challenges that we face as a community.

“This government has been consistent in our measures of support.

“That was evidenced in the $25 million midyear budget relief package unveiled last year, and reiterated in our Throne Speech pledges in March, where we announced a continuation of the Government’s plan to drive down the cost of living, deliver relief and expand opportunity for all Bermudians.

“Supporting the most vulnerable among us has always been a priority for this government, and we have not wavered.”