Action Mental Health, a charity based in Newtownards, expects a 64% cut in funding after the UK Shared Prosperity Fund ends on March 31. The Local Growth Fund will replace it, but the new allocation does not cover the charity's revenue costs. David Babington, chief executive of Action Mental Health, stated that the charity supports around 100 people each week from North Down and Ards through employability training and other programs.

Babington warned that without funding, the charity will consider staff redundancies and reduce services for vulnerable individuals. He noted that clients often arrive in suicidal crisis and receive support to improve their mental health and gain employment prospects. The charity has branches and outreach services across Northern Ireland.

The funding changes, announced in December 2025, target programs addressing economic inactivity. Across Northern Ireland, around 11,000 people rely on services from charity and voluntary organizations, with estimates of 400 to 450 immediate job losses.

This follows the 2023 end of the EU-funded European Social Fund due to Brexit. The UK Shared Prosperity Fund replaced it but provided less support, leading to prior redundancies at Action Mental Health. The latest cuts will leave the charity with one fifth of its previous European Social Fund level.

Babington highlighted Northern Ireland's high economic inactivity rates. He said clients risk longer waits for GP or hospital care without the charity's services. The charity has contacted every MP and MLA, expressing disappointment in responses apart from efforts by UUP's Robin Swann and SDLP leader Carmel Hanna.

Babington called for a local solution using underspends in the Department for Communities or part of the £400m UK Treasury allocation to Stormont.