EIJB funding crisis: The Third Sector relationship with the EIJB

THIRD SECTOR INTERFACE BRIEFING NOTE:

The financial situation of the Edinburgh Integration Joint Board (EIJB) is very challenging. In 2025/26, the IJB seek to realise around £51m of savings. Future years will see further savings required, currently estimated to be £76m in 2026/27 and £105m in 2027/28.  

These savings will be difficult and their impact will be substantial.  So, managing change, and ensuring key services are delivered to communities will require collaboration by the IJB and city partners, including the Third Sector.

Reference Group

On November 1 2024, Third Sector representatives presented deputations to the EIJB challenging proposals around the Third Sector Grants Programme and an in-year cut (2024/2025). The IJB did not approve the proposal for the in-year cut with an alternative proposal being approved. 

Following that meeting, the IJB invited Third Sector representatives to talk through concerns and identify areas to work together. To inform those meetings, EVOC and their TSI partners collaborated with the Edinburgh Community Health Forum and representatives of other Third Sector interests across the city to create a Reference Group.

The purpose of the Reference Group is to:

1. inform governance and city partnerships
2. assert the value of the Sector
3. shape investment
4. support change
5. distil the voices of the Third Sector to effectively represent the sector on the IJB

EIJB Engagement and Proposals

The Reference Group has rapidly considered the short-term issues around funding, and the longer-term issues of future partnership models, sharing a briefing note with the IJB on issues and options in early December. The engagement with EIJB has been positive given the difficult circumstances, and this positive engagement has resulted in an EIJB paper to the December Board which recommends:

• That the Health Inequalities grants programme, due to end on 31 March 2025 should be extended for three months into 2025/26 which will help provide time for the organisations affected to adapt.
• The Board support work currently underway to undertake a series of collaborative workshops which will inform some of the savings proposals and invest-to-save opportunities that will be submitted for consideration by the EIJB in March 2025.

In the current landscape this is a positive outcome for the Third Sector, informed directly by the voice, needs and priorities of the Sector.

City of Edinburgh Council Engagement and Proposals

Given the challenges to funding for the Third Sector and the impact cuts will have to the viability of Third Sector Organisations, the Reference Group have also argued the need for a cross city partnership approach to investment.

Following the November 1 EIJB meeting, the TSI wrote to the Chair of the EIJB, the Chief Executive of City of Edinburgh Council and NHS Lothian asserting the need to [a] reset investment [b] reform ways of working [c] repair relationships. In the immediate term, a key priority is to secure a commitment from City of Edinburgh to invest to mitigate the risks to critical and anchor organisations.

On December 10 the Council Policy and Sustainability Committee considered and approved a proposal that recognised that the Council may need to provide core or foundational funding to stabilise vital third sector organisations. The TSI with ECHF collaborated to present a joint deputation, welcoming the Council proposal, and offering support.

Council officers were instructed to:

• Work on a briefing paper for the Council’s political groups on what the Third sector needs now, specifically transitional funding, medium term, ahead of the Council setting its budget in February;
• Undertake a review of all grant funding, exploring the provision of longer term, sustainable funding;
• Work with the Edinburgh Partnership and Third Sector to co-design solutions, and agree terms of reference for a short life group and report back to Policy and Sustainability Committee in March.

Priorities: December EIJB meeting and Future Planning

The Reference Group will continue to meet and shape the next steps. An immediate priority is to agree on Terms of Reference and confirm representatives in the Group. We will be sharing a set of proposals before Christmas for your consideration.

A strong voice is essential to shape the long-term relationship with the EIJB and in particular the workshop series in spring 2025.

The Edinburgh TSI with EVOC and others from the Reference Group will support the paper to the EIJB on December 17 on progress on the Third Sector Grants Programme and the next steps in working collaboratively with the Sector, and also with the City of Edinburgh Council.

The EIJB Paper is available here: 6.3 Third Sector Commissioning 25-26 Engagement Update.pdf

If you need any further information in advance of the IJB meeting tomorrow (Tuesday 17 December), please get in touch with us or reach out to any member of the Reference Group.

We will also provide regular briefings on progress, through the fortnightly EVOC E-news and targeted updates on key information as necessary.

Dairmaid Lawlor, TSI Chair