I sold my business for £1.5bn – with great wealth comes great responsibility
Those of us fortunate enough to thrive at the top must do more to support those struggling at the bottom, not out of guilt or obligation, but because it is the right thing to do and makes us richer in meaning, purpose and legacy, says John Caudwell
This week I had the honour of speaking at the Giving and Impact Summit at the London Stock Exchange, a unique gathering of philanthropists, advisors and policy makers, designed to promote and inspire philanthropy in the UK.
The UK is a generous nation, but not generous enough at the very top. According to the Beacon Collaborative, only around 10 per cent of ultra-high-net-worth individuals are actively engaged in philanthropy.
That figure is unacceptably low. In a country with vast wealth and global financial reach, Britain has an extraordinary opportunity to lead the world in giving. But we need more of those with means to step forward.
My own journey with wealth began with Phones 4u, which I built from scratch into the UK’s leading mobile retailer, eventually selling it in 2006 for £1.46bn. It was a business achievement I’m proud of. But what followed, my work in philanthropy, has brought me far greater fulfilment.
I am a capitalist. I believe in entrepreneurship, in risk-taking and in the rewards of building something from nothing. But capitalism is not incompatible with philanthropy. I believe that great wealth comes with great responsibility.
Those of us fortunate enough to thrive at the top must do more to support those struggling at the bottom, not out of guilt or obligation, but because it is the right thing to do.
The right thing to do
That’s why I founded two charities close to my heart: Caudwell Children and Caudwell Youth.
Caudwell Children supports families with seriously ill and disabled children, the kind of families who often fall through the cracks of the NHS and traditional charitable support. A child with spinal muscular atrophy, for instance, may need a bespoke powered wheelchair costing £30,000.
Without it, their world shrinks dramatically. Parents are often full-time carers, under immense strain. This is where private capital can step in to go beyond the NHS and make a life great, not just liveable.
Caudwell Youth works with vulnerable young people aged 11 to 24 who are at risk of falling into crime, addiction or exploitation. Each is paired with a volunteer mentor for two years. The outcomes are extraordinary: an 89 per cent reduction in offending behaviour and an 80 per cent improvement in mental health. Every £1 invested saves over £6 in reduced crime and victim costs.
To ensure these organisations remain effective, I personally cover one third of all monies raised, enough to cover operating and administrative expenses.
But all of this must be seen in a broader context.
We live in a time of growing inequality and deep injustice. While billions are spent on luxury for luxury’s sake – Jeff Bezos’s recent wedding in Venice, for example, symbolised a level of extravagance few can even comprehend – many of the most vulnerable go without the basics. I mention this not to criticise him personally, but to highlight a moral contrast we can no longer ignore.
Jeff Bezos’s recent wedding in Venice symbolised a level of extravagance few can even comprehend
Still, I don’t believe in punitive wealth taxes or demonising the rich. That approach is counterproductive. Recently, I’ve warned about the dangers of our political discourse, particularly the scapegoating of non-doms and high-net-worth individuals. Britain risks pushing away those best placed to create jobs, drive innovation and, crucially, give to society. It’s economic self-sabotage.
Instead, we should foster a culture that attracts the world’s most successful people to live, invest and contribute here. And we must encourage them to do so with purpose.
That’s why I’ve pledged to give away 70 per cent of my wealth, through both active giving and a charitable trust in my will, with my family acting as trustees. I’ve joined the Giving Pledge, the global initiative launched by Bill Gates and Warren Buffett, which encourages billionaires to commit to giving the majority of their wealth to good causes.
So far, only around 250 have signed. Yet even that modest number has unlocked over $600bn for charitable work. If every billionaire gave just 50 per cent, we’d see over $11 trillion redirected to solving the world’s greatest challenges.
And for those worried about legacy: what greater legacy is there than helping to leave the world better than you found it?
My own philanthropic instinct began in childhood. At seven years old, lying in a freezing bedroom in Stoke-on-Trent, I dreamt of being able to help my community. Years later, when asked what I wanted on my tombstone, I would have said: “Here lies Britain’s most successful businessman”. But I came to realise how hollow that sounded. I had achieved the first half of that childhood dream. Now, I needed to fulfil the second.
That’s why I founded Caudwell Children in 2000. And why, nearly two decades later, I increased my giving pledge from 50 per cent to 70 per cent.
One truth is clear and simple: If you have the means, you have a duty.
Philanthropy is not a luxury. It’s a responsibility. One we must embrace not for recognition, not for tax relief, but because we belong to a society that only works when we lift others up, not just ourselves.
And if you’re worried that giving will leave you with less, let me offer this reassurance:
It won’t make you poorer.
It will make you richer, in meaning, in purpose and in legacy.