Social Enterprise UK had been made aware that a former social enterprise, Clarity, was alleged to owe as much as £200,000 in unpaid wages. We have further noted a feature in The Times today accusing the business of failing to pay staff whilst at the same time accepting furlough money from the government.

We wish to make absolutely clear that Clarity is no longer a member of Social Enterprise UK and we do not believe that it has met the definition of a social enterprise since its purchase by Mr Nicholas Marks. This includes the period during which these allegations have been made. We have requested that Clarity removes our Buy Social trademarks and certification from its website and products as soon as possible.   

We have also reached out to Sir Ian Duncan-Smith to assist him with his enquiries.

We were deeply saddened that Clarity was not able to remain a social enterprise after it went into administration last year. We hope that the situation is resolved a quickly as possible for the staff and community.

This incident has highlighted the need to consider what legal safeguards can be put in place to ensure that social enterprises which fall into distress are not lost but remain on mission. Social Enterprise UK will continue to work with Sir Ian, regulators, Government and other stakeholders to protect the integrity of the social enterprise sector.