National Insurance hike – The NEN

Scotland’s Community Foundation fast tracks funding to help most in need

Independent funder Foundation Scotland has announced a £12 million fast-tracked ‘Response Fund’ to support organisations which serve the hardest hit communities across the country.

The accelerated funding programme comes in response to increased pressure on charities and community groups, many of whom are seeing a surge in demand for services while they themselves are facing reduced capacity and soaring overheads, such as utilities, staffing and National Insurance costs.

To provide support for organisations who need it now, and to help with longer-term capacity building, Foundation Scotland will implement funding programmes that aim to do both.

Support includes a cost-of-living adjustment to all organisations funded in the last year to help them cope with rising operational costs. This will be implemented alongside a payment to organisations who were awarded funding last autumn, but who were unable to reflect the sudden increase in employer National Insurance costs in their applications.

Funding for these two programmes will total around £650,000.

Foundation Scotland will also contribute half a million pounds to the Corra Foundation’s ongoing Boost programme, a small grants fund for local community organisations supporting children and families hardest hit by poverty.

The Boost programme provides grants of £500-£3,000 and is delivered by Corra, in partnership with STV Children’s Appeal and Comic Relief.

Carolyn Sawers, Chief Executive of Corra Foundation said: “Community-led action is critical to tackling poverty and its impacts.

“Small grants, designed to work for local groups, make a big difference. With Foundation Scotland’s contribution, Boost will be able to reach many more children and families across Scotland.”

Funding support that will help both immediately and in the longer term is also being given to all of Scotland’s Citizens Advice Bureaux, to assist with staffing and operational costs.

During the cost of living crisis, CABs have been overwhelmed with people desperate for help or support to navigate energy bills, benefits, debt, housing concerns and other urgent issues. CABs themselves are charities and many are struggling with the disproportionate balance of need to resource as well as the ever increasing strain of covering their own costs.

All 59 CABs, as well as their umbrella body Citizens Advice Scotland, will receive individual awards of £50,000 this year and £50,000 in the next financial year, totalling £6million of funding over 2 years.

Derek Mitchell, CEO of Citizens Advice Scotland, said: “Our network is seeing record levels of demand from people across all corners of Scotland.

“The advice we provide is fundamentally about bringing stability to volatility, but the people behind the network, the ones working tirelessly to help communities are facing increasing pressures.

“CABs own livelihoods are often marked with uncertainty and at the mercy of short-term funding cycles. Funding like this is a game-changer. It will allow CABs to take a breath and plan the next two years with more of a safety net around costs.

“I’d like to extend a huge thank you to Foundation Scotland for the support, and to everyone at CAS and the network that continue to work each day to better the lives of people across Scotland.”

Lastly, Development Trust Association Scotland (DTAS) will receive funding to help support local development trusts across the country.

Development trusts are community led organisations, set up to proactively address and tackle local needs and issues through community-led activity and partnership working. Many of them are vital to community support systems and infrastructure, but are facing critical operational challenges.

Funding will help them stabilize and rebuild their capacity, to better support the communities they represent. DTAS is the member-led organisation that promotes and supports development trusts across Scotland, and they will hold and distribute the funds.

This award will total £5million, allocated over two years, and represents the biggest single award Foundation Scotland has made in its history.

Pauline Smith, Chief Executive at DTAS said: “This funding couldn’t have come at a more crucial time and is strong recognition of the incredible work Development Trusts are doing across Scotland.

“We’re operating in a challenging environment, and this £5 million investment will be directed straight to our members through a Recovery and Resilience Fund – supporting long-term strength and sustainability in communities.

“With over 400 existing and aspiring Development Trusts in our network, we see every day the vital role they play, responding to growing local needs, strengthening community-led governance, and creating places people are proud to call home.

“These trusts are the backbone of community infrastructure, and without them, much of the social, economic, cultural, and environmental activity in our communities simply wouldn’t exist.

“This support will help strengthen the infrastructure that so many people rely on. We’re hugely grateful to Foundation Scotland – this funding will make a real and lasting difference across the country.”

Giles Ruck, CEO of Foundation Scotland said: “As Scotland’s Community Foundation, we are acutely aware that people across the country are continuing to face ongoing financial hardship, struggling to keep their heads above water or pay their bills.

“We want to support communities and individuals where we can. As a first step, we are fast tracking this Response Fund to help address multiple and pressing challenges. We want to go at least some way to help those affected by financial crisis, as well as help organisations and charities to stabilise and rebuild.

“Although we are providing over £12 million in funding, we know that we are scratching at the surface. However, we are committed to using this fund as a stepping stone from which we can better support communities, listening to what people say that they need, and working with others to create a stronger, more resilient Scotland.

“Foundation Scotland would like to thank the many donors who trust us with stewardship of their funds, pooling them with our own to ensure the greatest impact on our communities.”

For more information about Foundation Scotland visit:

https://www.foundationscotland.org.uk

MSP Calls for Greater Support and Funding Clarity for Local Community Organisations

Foysol Choudhury MSP Stands with Unsung Community Heroes in Edinburgh

Foysol Choudhury, MSP for Lothian, calls for greater support and funding for local community organisations in Edinburgh, such as the Polish Family Support Centre, following a series of ruthless budget cuts from the Scottish Government.

Foysol Choudhury MSP has issued a heartfelt and urgent appeal for greater support and funding for local community organisations in Edinburgh. During a recent visit to the Polish Family Support Centre, Mr. Choudhury emphasised the critical role these organisations play in encouraging community cohesion and providing essential services to underrepresented groups.

This comes after the Scottish voluntary sector was struck with further budget cuts. The Scottish Council for Voluntary Organisations (SCVO) have revealed that real-term cuts to public funding have surmounted to over £177m since 2021, where more than 76% of third-sector organisations report financial challenges because of inflation and rising costs.

These cuts are not just numbers; they represent the struggles of countless individuals and families who rely on these vital services.

This situation may only worsen with changes to employers’ National Insurance contributions, imposed by Labour Chancellor Rachel Reeves, which could leave the sector with another £75m to find each year.

In his recent visit to the Polish Family Support Centre, Mr. Choudhury witnessed significant challenges due to limited funding and resources.

As a one-stop-shop for all, the Polish Family Support Centre provides a wide range of services, including professional counselling, workshops, and support groups, all aimed at helping Polish families and individuals navigate the complex nature of life in Scotland.

However, the Centre’s ability to expand its reach and impact has been drastically obstructed by financial constraints. According to the Office of the Scottish Charity Regulator, the Polish Family Support Centre has lost hundreds of thousands in funding, and with over 4,040 yearly sessions in 2023 – an increase of 2,000 from 2018 – it is clear that the Polish Family Support Centre needs further backing.

Other community organisations such as the Edinburgh Children’s Hospital Charity, Milan SWO, Edinburgh Diwali, the Bihari Community of Scotland, and other third sector organisations are also crying out for support.

Mr. Choudhury’s call to action comes at a time when many third-sector community organisations struggle to secure funding and resources. He has been a vocal advocate for these groups, hosting roundtable discussions at the Scottish Parliament to address the current funding model and barriers to access.

Here, the Scottish Government and other public bodies need to take a fair funding approach, moving to inflation-based settlements of three years or more, which consider costs such as uplifts in the real living wage.

Community organisations, such as the Polish Family Support Centre, continue to exist as a symbol of hope for the people of Edinburgh, driven by a mission to support and empower individuals and families.

Commenting, Foysol Choudhury MSP said: “Community organisations exist as the backbone of our society. They offer vital services, from psychological support to advocacy, yet they remain overlooked and underfunded.

“It is crucial that we recognise their contributions to our community and provide them with the necessary support to continue their work.

“Edinburgh and the rest of Scotland must address the barriers to funding and ensure that smaller community-based organisations have access to the resources they need, as their work is crucial in promoting social inclusion and supporting minority groups.

“I urge everyone from policymakers to residents, to recognise the invaluable work these organisations do. They are not just service providers; they are the heart and soul of our communities.

“By supporting them, we are investing in a more inclusive, compassionate, and resilient society. Let’s come together to ensure that nobody is left behind.”

National Insurance funding ‘vital for councils’

Finance Secretary calls for clarity as local authorities set their budgets

The employer National Insurance increase must be fully funded to ensure local authorities have the resources they need to serve their communities, Finance Secretary Shona Robison has said.

Ahead of an appearance before the local government committee next week, Ms Robison again called on the UK Government to provide urgent clarity over the funding to help the Scottish Government and local authorities finalise their budgets.

The Finance Secretary said: “Scotland’s public services face a bill of more than £700 million as a result of the UK Government’s increase in employer National Insurance Contributions.

“There have been indications of likely funding reported in the media, but these fail to take account of the fact that we have a larger public sector per person than other parts of the UK, leaving us some £300 million short.

“It feels like Scotland is now being punished for having decided to employ more people in the public sector and to invest in key public services.

“We know local authorities are already under significant financial pressure. This will only continue to build unless the UK Government reimburses us in full for their tax increase. Councils are in the process of setting their Budgets now, so the sooner we have clarity over this issue the better – this is needed urgently.

“The Scottish Government will continue to work closely with COSLA to press the UK Government to provide the funding needed to support public services in Scotland.”

The First Minister and President of COSLA wrote to the Chancellor on 3 January, supported by 48 public and voluntary sector organisations to raise concerns at the impact of the increase to employer National Insurance contributions and to seek clarity on funding.

National Insurance Contributions: public sector costs – gov.scot

What does a “very difficult winter” look like for low-income families?

A lower-income couple with two young children where one adult is working full-time is going to need to find an additional £31-a-week to cover the cost of living and falling benefit rates from October, according to new analysis by the Joseph Rowntree Foundation.

In an interviewyesterday, the Business Secretary warned “it could be a very difficult winter”. This comes amid growing concern across the political spectrum that the rising cost of living is about to put immense strain on low-income families.

If the Government proceeds with cut to Universal Credit as planned, changes to the energy price caps, and inflation means that at the same time this couple family are trying to compensate for the £20-a-week they had before the cut, they will soon need to find an additional:

£3 for energy (assuming pre-payment meter)
£8 for other living costs

= an additional £11 per week from October.

On top of this, the same family would need to find an extra £2.50 to cover the increase in National Insurance Contributions from April 2022 because of the Health and Social Care levy.

This would mean in total this family may need to find an additional £13.50 per week or £710 per year (around the entire clothing and footwear annual budget for this kind of family) as well as losing £20 a week from Universal Credit. For this family, the extra costs alone equate to around 3.5% of their weekly disposable income.

Peter Matejic, Deputy Director of Evidence & Impact at the Joseph Rowntree Foundation, said: “Millions of low-income families are incredibly anxious about how on earth they are supposed to make ends meet from next month.

“Ministers rightly recognise this is shaping up to be a very difficult winter, yet there is little sign of them taking the decisive steps that are necessary to avoid real hardship for low-income families.

“The growing concern about the cost of living reinforces why cutting Universal Credit makes absolutely no sense. Social security is a key defence in protecting families from precisely these sorts of economic shocks, but the Government is on course to impose the biggest ever overnight cut to the system and leave families with an inadequate lifeline.

“The Prime Minister urgently needs to keep the £20-a-week increase to Universal Credit in place. Rising child poverty, soaring demand for food banks, people worrying about keeping their homes and covering the cost of bills, flies in the face of uniting and levelling up our country.”

“Millions more people now have a better chance to live happy, healthy and dignified lives”

Health and Social Care Secretary Sajid Javid justifies the Health and Care levy

This past year has been the most difficult in living memory for our country – and we have faced those difficulties together. The British people have made unprecedented sacrifices to our freedoms and our way of life to keep each other safe.

Whilst staff in the NHS and across social care have moved mountains to help those who needed care. They have treated over half a million patients with COVID-19, administered over 90 million life-saving vaccines, and cared for the elderly and most vulnerable in our society.

Despite these efforts, it was inevitable that this global pandemic would take its toll on a system that was already in need of reform. We now have a backlog of 5.5 million people waiting for treatment – and if we were to continue with business as usual this could rise in the coming years to as high as 13 million. Before the pandemic, we treated nine in 10 people within 24 weeks. That has now risen to 45 weeks.

The pressures of the pandemic have also been stark in social care, adding to the burdens of an unfair system in crisis. Around one in seven people end up paying over £100,000 for care, and often the heaviest burden falls on those least able to bear it. Meanwhile, staff in social care have worked tirelessly, even when we know they could have benefitted from better support and training.

No responsible government – especially a Conservative one – can bury its head in the sand and pass these problems onto the next one.

The Health and Care Levy announced yesterday will be a direct investment into the NHS and social care. But I appreciate it does not sit easily with everyone. No government would ever wish to go back on a promise it has made to the people – and I’ve always believed in making sure the tax burden is as low as possible.

Yet no government since the Second World War has faced unprecedented challenges of such magnitude. Last week I met health ministers from the world’s biggest economies at the G20: we are all having to deal with the consequences of this global pandemic. I am determined we face up to them.

We want the NHS to be a world-class service, and we need to put social care on the strongest possible foundation for the future. But we have to do that in a responsible way. That means spreading the burden across the broadest shoulders, and not simply borrowing in the short-term to pay for the long-term. That is what our levy does: it shares the burden across employers, employees and pensioners alike. The highest-earning 14 per cent in the country will pay over half the levy.

Together, we are making a critical investment in our country’s future. This will be the biggest catch-up plan in NHS history – delivering nine million more checks, scans, and treatments. We all know someone who has been waiting to long for such procedures.

We are going to ensure the vital work of routine operations, meaning things like hip replacements and cataract surgery do not stop. We are also investing in the next generation of scanners and screening equipment, so we are even quicker at finding and treating diseases like cancer.

The levy is also a vital first step for the reform of our broken care system. No one will have to pay more than £86,000 in care costs over their lifetime. That cap will apply to everyone – it will not matter what condition you have, where you live, how old you are or how much you earn.

We are also casting out the safety net further by expanding means-tested support, so many more people can benefit from having the costs of their care covered. In addition, care staff will now benefit from half a billion pounds of funding to deliver new qualifications, better career routes and much-needed mental health and wellbeing support.

Through these historic investments we are meeting the scale of the challenges we face together, just as we have done throughout this pandemic. In making these difficult decisions we are stepping up as a country to end the cruel care lottery and tackle the backlog. As a result, millions more people now have a better chance to live happy, healthy and dignified lives.

MPs voted through the NHS and Social Care tax rise last night