Light at the End of the Tunnel?
Edinburgh’s third sector is facing a funding crisis that could result in the loss of essential health and social care services. Sixty-four third sector organisations, which provide vital support to the city’s most vulnerable residents, are at risk following proposed funding cuts by the Edinburgh Integration Joint Board (EIJB).
The potential closure of these organisations would not only impact service users but could also lead to the loss of 200 jobs, many through compulsory redundancies.
Scottish Labour MSP for the Lothian Region, Foysol Choudhury, is actively engaging with Edinburgh City Council to advocate for greater clarity and support for these organisations. “I have been asking the council to consider taking over the funding of the 64 organisations,” he said.
In response, Councillor Jane Meagher, Leader of Edinburgh City Council, has indicated a positive step forward: “Our Finance Convenor proposed an additional £2 million of transition funding for Edinburgh’s third sector service providers.
“The work that these organisations do helps local people, many of whom desperately need this assistance and support.
“I’m pleased that by raising this in Committee, we allowed all attending councillors to indicate support for finding more money to help Edinburgh’s charitable and volunteering groups, some of which are facing existential cuts following a decision by the EIJB.”
Community Pressure and Temporary Relief
Public outcry in response to the proposed cuts in November 2024 led to their rejection, with the EIJB pledging to collaborate with affected organisations to seek alternative solutions.
In December 2024, the EIJB extended the existing grants—originally set to expire on 31 March 2025—by three months. However, this extension provides only temporary relief, with no long-term security for the organisations involved.
While some may secure alternative funding, others could be forced to close, leaving significant gaps in service provision.
Council Report Highlights Risks
A report submitted to Edinburgh City Council and Officers following an initial assessment of the situation highlighted serious concerns.
The report concluded that the closure of the EIJB grants programme poses a substantial risk to the financial viability of many third sector organisations, many of which are key partners in delivering council services.
The potential closure of these organisations could undermine the council’s ability to deliver existing projects, programmes, and priorities, further exacerbating social inequalities across Edinburgh.
A Call for Sustainable Solutions
MSP Choudhury remains committed to advocating for a sustainable funding solution that protects essential services and jobs: “I will continue to push for sustainable funding solutions that protect the essential services our communities rely on,” Mr Choudhury affirmed.
With the future of Edinburgh’s third sector organisations hanging in the balance, all eyes are now on the council and EIJB to ensure long-term solutions are found to protect these vital services.