Tag: financial uncertainty

SCVO: Lifeline services at risk as voluntary organisations call for funding assurances

  

Third sector representatives have warned the Scottish Government that work done by charities and voluntary organisations cannot continue without multi-year funding.  

Key public services could be at risk as new research shows a significant number of voluntary organisations across Scotland are seeing rising costs affect their ability to operate.  

Research published as part of the Third Sector Tracker, a partnership project on behalf of groups including the Scottish Council for Voluntary Organisations’ (SCVO), shows the growing challenges facing charities and voluntary groups.   

Data gathered in March and April this year shows that Spring 2022 saw the cost of operating increase for most organisations, impacting their ability to deliver core services. 

Voluntary sector services are essential to the wellbeing of people in Scotland – particularly during trying times such as the cost of living crisis, just as they did during the Covid-19 pandemic.    

In the past two years the importance of Scotland’s voluntary sector has been underlined throughout the Covid-19 pandemic, with the co-ordination of food and grocery support, alleviating mental health and wellbeing issues, such as befriending, and digital inclusion work to reduce isolation all carried out by the sector.  

A large majority (86 per cent) of organisations also reported rising costs since December 2021, with the most common rises being:   

  • Cost of materials and supplies (63 per cent)
  • Transport costs (53 per cent)  
  • Staffing costs (47 per cent)  
  • Energy costs (45 per cent)  

Of organisations seeing rising costs of any kind, 42 per cent felt this affected their ability to deliver their core services or activities.  

With groups across Scotland facing challenges, the three months to April 2022 saw just half (50 per cent) of organisations able to meet or exceed their planned programmes or services. A further 43 per cent were able to meet them partially.  

Although many remain confident of continuing, SCVO believes that planned, multi-year funding is key to ensuring that vital public services provided by charities and voluntary groups can continue.   

Kirsten Hogg, Head of Policy Research & Campaigns at the Scottish Council for Voluntary Organisations (SCVO), said: “Far too many voluntary organisations are left wondering what, if any, funding they’ll receive to continue programmes and services from year-to-year.    

“Voluntary organisations need to see the funding they receive from the public sector keep pace with inflation. Without this, large swathes of charities will be left with shrinking budgets at a time of rising demand, putting services at risk and leaving them unable to pay staff fairly.   

“We cannot continue to see unnecessary expectations being placed on voluntary organisations that are not felt by their public sector equivalents. If the third sector is expected to continue providing lifeline services, this cannot be done without an ability to plan for the future.  

“Core funding must be expanded to ensure that organisations can meet running costs. It is not possible for a service to exist without an organisation to deliver it. Organisations need flexible investment to keep the lights on, to innovate and to continue their critical contribution to Scottish society.” 

‘The stark reality is that some council services won’t restart’

Accounts Commission: Councils and communities worked well together but impacts of Covid are unequal

Scotland’s councils reacted quickly, working alongside communities and partners to address the unprecedented challenges created by Covid-19, says a new report from the Accounts Commission. Many challenges remain significant, however, made more urgent by the multiple impacts of Covid-19 on communities and services.

Councils have a critical role in providing vital services which communities depend on. In its Local Government Overview 2021 report, the Accounts Commission, who report to the public on the performance of local government, make clear that councils, alongside their partners, quickly provided innovative and sustained support to vulnerable people.

This included supporting those who were shielding or self-isolating, switching to delivering services digitally and managing significant funding to support local businesses. 

With many council services disrupted, stopped or reduced, in particular education, social care and culture and leisure, the impact on some service users was severe and unequal. This included carers who lacked access to respite care, people with learning disabilities who were unable to access critical services and support, those receiving care at home and school children whose education was disrupted.

Covid-19 has also exacerbated and laid bare fundamental issues that need to be addressed to ensure services are maintained and that councils can tackle the multiple challenges ahead.

To help achieve this, longer-term financial certainty for councils will be vital. Whilst the Scottish Government has provided significant financial support to councils to assist in managing the net cost of Covid-19 in 2020/21, considerable amounts of funding took the form of one-off payments.

Furthermore, funding for councils beyond 2021/22 remains uncertain. Addressing this issue is vital.

Elma Murray, Interim Chair of the Accounts Commission, says: “Councils, communities and their partners have worked incredibly hard to continue to deliver vital services to local people. The stark reality is that some council services won’t restart, and some services will have to be delivered differently. 

“Underpinning this is the increasingly urgent need to address inequalities throughout Scotland’s communities. And for councils this is made more challenging because they continue to operate in a climate of significant financial uncertainty, which must now be addressed.”