Calls come as Holyrood Committee publishes report on public funding to voluntary organisations
Short-term funding cycles are creating financial instability and diverting time and resources away from charities’ delivery of services, according to a pre-Budget report by the Scottish Parliament’s Social Justice and Social Security Committee.
At the outset of the Committee’s inquiry the Scottish Council for Voluntary Organisations painted a stark picture of the challenges faced by charities in Scotland, identifying a 2.1% real terms decrease in Scottish Government funding in the previous budget, against a backdrop of increased inflation and high demand for services.
In recognition of the critical role charities play in supporting Scottish society, the Committee’s report calls on the Scottish Government to look at options to prioritise three-year-funding and include provisions for inflation-based adjustments.
During the inquiry, witnesses raised concerns about inconsistency, complexity and a lack of transparency in the application process for funding. In response, the Committee’s report recommends that the Government, and its partner grant awarding-bodies, streamline and standardise application processes and improve the transparency of the grant-making decision process.
The Committee also heard about the challenges some charities have faced because of delays to funding decisions and payments, issues the Committee wants the Scottish Government to resolve.
Bob Doris MSP, Deputy Convener of the Social Justice and Social Security Committee, said: “The Scottish Government has a commitment to provide fair funding for the essential work done by Scotland’s charity sector.
“We make it clear in our report that this commitment should be recognised in the upcoming budget, so that the sector’s vital work can be safeguarded. We call on the Government to prioritise strengthening its approach to multi-year funding and improving its processes.
“Whilst we acknowledge the Scottish Government’s ability to agree to multi-year funding when it does not know what funding it will receive from the UK Government for subsequent years, our committee has made practical suggestions to overcome these challenges.
“We believe that implementing the straightforward measures outlined in our report, including multi-year funding, could positively impact the effectiveness of a sector that does so much to help so many.”
Responding to the report, Scottish Council for Voluntary Organisations (SCVO) Chief Executive Anna Fowlie said: “I welcome today’s report, and the committee’s recommendations. Throughout their inquiry, the Committee heard from witness after witness of how the practice and culture around public funding for voluntary organisations is broken.
“Too often and for too long voluntary organisations providing vital services to people and communities across Scotland contend with budget cuts, short-term funding cycles, late payment, incoherent decision-making, poor communication, inadequate grant management and more. That must end.
“The voluntary sector needs a funding landscape that is fair, flexible, sustainable, and accessible – as long-advocated by SCVO and recommended by the committee today.
“At a time when many voluntary organisations are facing extreme financial difficulties, these long-standing calls are more essential than ever.
“The prize is a sustainable sector, strong public services, and resilient communities – one the Scottish Government must grasp with both hands.”
COMMUNITY PROJECTS TO LEARN THEIR FATE AT EIJB MEETING
SIXTY-THREE voluntary sector organisations will learn their fate today when Edinburgh Integration Joint Board makes crucial decisions on cost-saving measures.
EIJB is looking to make ‘savings’ (i.e. cuts) of £60 million and the proposal to disinvest in third sector projects would see the EIJB ‘save’ £4.5 million, but the voluntary sector argues that the scale of the cuts in some of the capital’s poorest communities – cuts imposed without any prior consultation – will actually cost the city far more in real terms – and they are urging the EIJB to think again.
If the EIJ Board accepts Chief Officer Pat Togher’s recommendations to disinvest, projects across Edinburgh will be forced to slash services, make staff redundant and, in some cases, close completely.
One of the projects affected is Libertus Services, a charity dedicated to supporting people to live independently. Libertus provides two registered Day Care services to local older people, located in Gracemount and Canalside, alongside a plethora of recreational, educational, cultural and social activities.
Libertus Services is dedicated to empowering its’ Members to make informed choices and to engage with activities which offer a selection of physical activity, reminiscence, games and art as therapy.
Their Positive Futures project supports local people (50+) across Edinburgh to develop and run activity groups in community based settings. The groups take place on a weekly basis, facilitated by a dedicated team of volunteers.
Andrew Farr, General Manager at Libertus, said:“Libertus Services has been established for 43 years and employs 23 staff members to provide services for people at risk of many vulnerabilities, including social isolation, and has provided support to thousands of people.
“The impact of EIJB cuts to Libertus Services will affect at least 300 people aged over 50, and older vulnerable people and their support base who rely on the input and outcomes achieved within our groups.
“The loss of peer support, interaction and professionally led early intervention will inevitably lead to an increase in our vulnerable population of older people becoming more reliant on statutory services now and in the future.
“The potential closure of our Positive Futures over 50’s service and our volunteer service additionally losing 42 volunteers not only increases risks to our Day Services for older people, which will no longer receive the additional social and practical input from our volunteers, but also reduces our financial stability.
“This is due to our premises increasing their reliability on the already reducing contract with the EHSCP, following a 10% in year contract reduction, followed by additional year on year 10% reductions in funding from 2025 onwards.
“A significant number of people would be without our support, leading to social isolation for a significantly higher number of people with social and psychological needs. Service provision would need to be absorbed by adding further pressure within statutory services, including hospital admissions and readmissions, due to the increase in demand resulting from the loss of this preventative service.”
The projects facing cuts today are:
ACE-IT
Art In Healthcare – Room For Art project
Autism Initiatives
Bethany Christian Trust – Passing The Baton project
Bridgend Farmhouse – Community Kitchen
Calton Welfare Services
Care for Carers – Stepping Out residential and short-term breaks for Carers
Caring in Craigmillar – Phonelink
CHAI Community Help and Advice Initiative (Edinburgh Consortium) – Income maximisation, debt and welfare advice
Citizens Advice Edinburgh (Edinburgh Consortium) – Income maximisation, debt and welfare advice
Changeworks – Heat Heroes programme
Community One Stop Shop – COSS
Community Renewal Trust – Health Case Management
Cruse Bereavement Care Scotland – Edinburgh bereavement services
Cyrenians – Golden Years Community Connecting Service
Drake Music Scotland – Musicspace
Edinburgh and Lothians Greenspace Trust – Healthy Lifestyles South Edinburgh
Edinburgh Community Food – Healthier Food, Healthier Lives, Healthier Future
Edinburgh Community Health Forum
Edinburgh Consortium (CHAI, Citizens Advice Edinburgh and Granton Information Centre) – Income maximisation, debt and welfare advice across the city
Edinburgh Garden Partners – Befriending Through Gardening project
Edinburgh Headway Group – ABI Rehabilitation Support Project
Edinburgh Leisure – Steady Steps programme
Edinburgh Rape Crisis Centre – Rape crisis support service
Eric Liddell Centre – Caring for Carers Befriending Service
FAIR – Family Advice and Information resource for people with learning disabilities
FENIKS – Reach Out, Help Within support for Eastern European community
Fresh Start – Helping previously homeless people make a home for themselves
Granton Information Centre (Edinburgh Consortium) – Income maximisation, welfare and debt advice
Hillcrest Futures – Futures Hub
Health All Round – Community health initiative in Sighthill Gorgie
Health in Mind – Counselling in Craigmillar
Home Start Edinburgh West and South West – promoting positive perinatal health
LGBT Health and Wellbeing – Core funding and community programme
Multicultural Family Base MCFB – Syrian mens mental health group
Murrayfield Dementia Project – Day Resorce
Pilmeny Development Project – Older people’s services
Pilton Equalities Project – Mental health and wellbeing support service
Pilton Equalities Project – Day Care services
Portobello Monday Centre – Informal daycare for people with dementia
Portobello Older People’s Project – Lunch and social club for isolated people
Positive Help – HIV/AIDS and Hepatitis C support service for vulnerable adults
Queensferry Churches Care in the Community – support services for older people
Rowan Alba Ltd – CARDS service for people with alcohol-related brain damage
Scottish Huntingdon’s Association – Lothian Huntingdon’s Disease service
Sikh Sanjog – Health and wellbeing group for ethnic minority women
South Edinburgh Amenities Group – community transport service
South Edinburgh Day Centre Volunteer Forum
Support in Mind Scotland – RAISE for Carers project
The Broomhouse Centre – The Beacon Club
The Broomhouse Centre – Vintage Vibes consortium
The Broomhouse Health Strategy Group – B Healthy Together initiative
The Dove Centre – Social day centre
The Health Agency – Community-led health improvement initiative
The Living Memory Association – drop-in facility for isolated older people
The Open Door Senior Men’s Group – tackling social isolation
The Ripple Project – Community hub in Restalrig
The Welcoming Association – Welcoming Health programme for migrants/refugees
Venture Scotland – Outdoor activities and residential experiences
VOCAL – Counselling support for carers
Waverley Care – HIV and Hepatitis C support
The following projects will make deputations to this morning’s meeting:
It’s looking increasingly likely that common sense will prevail today and that recommended funding cuts will NOT be imposed before the end of this current financial year – always an unrealistic ambition given the timescales involved and the lack of prior consultation.
Edinburgh Green Councillor Alys Mumford tweeted yesterday: “I’m sure everyone has been very concerned about news of potential in-year cuts to 3rd sector organisations.
“Here is an update from the Edinburgh Councillor Group, and as a board member of the Integration Joint Board, I’m glad I’ve submitted this joint proposal to reject the cuts:
So a small victory for the voluntary sector IS possible today, maybe, but would this be just a stay of execution, a short reprieve?
The EIJB must balance it’s books, and with the city council, NHS Lothian and the Scottish Government all facing financial challenges of their own, just how does Edinburgh Integration Joint Board fill that black hole?
And what is the future for our community projects – and the hundreds, perhaps thousands. of vulnerable people they support across what is supposed to be an affluent capital city – come the new financial year? Can it be a Happy New Year for them?
Hopefully all will become clearer this afternoon.
Good luck to all of the deputations this morning and here’s hoping Edinburgh Integration Joint Board belatedly sees the real human cost of the cuts being proposed – and rejects them.
The recent announcement by the Integrated Joint Board (IJB) regarding the disinvestment from up to 64 community organisations as part of its recovery plan for 2025/26 has ignited significant outrage among Third Sector, including members of the Edinburgh Community Health Forum (ECHF).
This drastic cut threatens the very fabric of our community support systems and undermines our collective commitment to health and wellbeing in Edinburgh, said ECHF’s Strategic Development Manager, Stephanie-Anne Harris.
Stephanie-Anne vehemently criticised the decision, stating: “This disinvestment will lead to the closure of numerous charities and an increased reliance on statutory services, including the NHS and Council.
“Furthermore, it contradicts the Scottish Government’s and Public Health Scotland’s advocacy for prevention and early intervention strategies.
“Evidence overwhelmingly supports that investing in prevention is one of the most cost-effective methods to improve health outcomes and reduce inequalities.
“This short-term approach to achieving savings is fundamentally misguided.”
Historically, core funding for the Third Sector was managed by the Council before being transferred to the IJB.
The current proposed cuts pose a severe threat to organisations that provide essential services to some of Edinburgh’s most vulnerable residents.
Catriona Windle, Chair of ECHF and CEO of Health All Round, a charity dedicated to supporting residents in Gorgie Dalry, Saughton, Stenhouse, and surrounding areas, added: “We call for an immediate halt to cuts scheduled for 2025 and urge the IJB to engage in meaningful discussions with the sector about sustainable funding solutions.
“While we recognise the need for budgetary considerations, we cannot afford to compromise on the vital support that Third Sector organisations provide. We propose delaying cuts until September 2025 to allow for a proper conversation about the future.
“The IJB must recognise that resourcing for the Third Sector is not non-essential; it is crucial for the wellbeing of our communities.
“We implore Council leaders and the IJB to consider resuming full responsibility for funding these vital services or to engage the Third Sector in developing a strategic funding model that ensures ongoing investment in our collective health.”
EDINBURGH Integration Joint Board meets on Friday 1 November at 10am in the Dean of Guilds Room at the City Chambers.
See belowfor meeting papers – including details of the cuts being recommended:
Following reports of the UK Gov’s #Budget24 plans for increases to employer National Insurance contributions, SCVO wrote a joint letter with @NCVO@NICVA & @WCVAcymru to @RachelReevesMP about the potential impact this could have on the voluntary sector:
SCVO, NCVO, NICVA, and WcVA letter to Rachel Reeves, Chancellor of the Exchequer: Autumn Budget 2024 – employers’ National Insurance contributions
Dear Chancellor
Autumn Budget 2024 – employers’ National Insurance contributions
We are writing to you on behalf of charities and community organisations across the UK, in relation to recent reports of plans to increases to employer National Insurance contributions and the potential impact this could have on the voluntary sector.
If reports in the media are correct, National Insurance contributions are to be increased in the private sector. Public sector employers will be reimbursed for any such increase, to protect public services. But there has been no mention of the voluntary sector. This comes as a disappointment, given that our sector provides essential public services to people and communities up and down the country, delivering significant savings to the public purse.
With costs climbing, funding falling, and demand for services increasing, our sector already faces a crisis. The additional costs placed on the sector by increasing employers’ National Insurance contributions will only compound this.
As you navigate the significant financial challenges the country faces, we are confident that it would not be your intention to place them at the door of charities and community organisations. We are not asking for special treatment, just parity with the public sector.
In the spirit of partnership – as outlined in the UK Government’s Covenant document which published last week – we are assuming this is an oversight or over-simplification by the media and we are therefore calling on you to urgently clarify this matter, confirming that no additional financial burden will be placed on our sector.
We look forward to receiving a response as a matter of urgency.
Long-standing enterprise and financial education programmes for schools and colleges to cease immediately as Young Enterprise Scotland denied Scottish Government support
Young Enterprise Scotland, a national charity that has delivered enterprise education to schools and colleges for over 30 years, is now at risk of closing after the Scottish Government scrapped established grants and failed to follow through on funding assurances.
The national charity is facing closure due to the Scottish Government’s failure to honour funding assurances and last-minute changes to funding methods.
YE Scotland, which develops entrepreneurial mindsets in young people and educators has been a crucial strategic delivery partner in supporting national ambitions in education and entrepreneurship. The organisation has lost its full Scottish Government grant, which accounts for the majority of its overall income.
If no emergency funding can be sourced, the organisation will be forced to close. Thousands of hours of practical learning to primary and secondary students in the circular economy, teamwork, communication, financial planning, sales and marketing and more will be immediately wiped off the school week.
Students will no longer be able to complete the SCQF Level 6 qualification ‘higher’ in entrepreneurship and up to 31 jobs will be lost.
Last year, YE Scotland supported over 18,000 school and college students through its enterprise programmes, including its flagship Company Programme, which many entrepreneurs credit with setting them on a successful business career. In the past three years, more than 1,000 students have gained a YE Scotland enterprise qualification (SCQF Level 6) to prepare them for further education, work and life.
Young Enterprise Scotland Chief Executive Emma Soanessaid: “We are absolutely devastated that the future of Young Enterprise Scotland now seems untenable with the loss of our major income source.
“Not only will this have a huge detrimental impact on our dedicated staff team, who now face redundancy, but given our extensive reach across Scotland it will also impact massively on the national education landscape and the education of young people in Scotland of which our work played such a crucial role.
“Failing to support this crucial stage of the entrepreneurial pipeline is entirely at odds with strategic priorities reflected in the Government’s National Strategy for Economic Transformation and the key recommendations of the Entrepreneurial Campus report.”
YE Scotland’s funding has historically come from a combination of a core continuity grant from the Scottish Government, an ongoing pipeline of support from Trusts and Foundations and, to a lesser extent, support from the private sector.
For both the financial years 2022/2023 and 2023/2024, the Scottish Government grant was significantly delayed. This was particularly so in the last financial year with the delay resulting in late submission of the charity’s audited accounts, directly impacting its ability to apply for additional funding.
Over both years, the charity has supported the Scottish Government during their funding delays by continuing to deliver vital services in good faith.
As a provider of education-based programmes that relies on onboarding schools ready for delivery at the start of the academic year, YE Scotland continued to work on delivering its programmes for 2024/25.
Given the charity’s long standing relationship with the Scottish Government, the experience of previous grant cycles and communications from government officials right up until May 2024 about the availability of funding, the charity onboarded around 80% of the schools and colleges it would be working with for the coming year.
However, in July this year, YE Scotland was advised the grant process would now cease with immediate effect, replaced with a competitive process. The Entrepreneurial Education Fund subsequently opened in August, with no consideration being given to work already underway or any costs incurred up to that point.
YE Scotland Chair, Dr Andy Campbell, who is founder of the Scottish Space Network, added: “For over 30 years, Young Enterprise has delivered life-changing opportunities for young people in Scotland, myself included.
“We understand that government budgets can face challenges and delays, particularly in the current climate. As a committed partner, the charity has historically supported the Government’s delays in funding, continuing delivery to ensure our young people’s futures are not impacted.
“Historically, these delays were always addressed, with costs settled and accompanied by thanks and apologies. However, despite this constructive commitment, it now appears that future funding is to be withdrawn — which we can manage, albeit as a vastly smaller organisation and not delivering the vast majority of our current activity.
“However, critically it now seems that our historical outlays will remain unsettled putting the entire organisation at risk of closure. Without emergency funding, the charity will be in a precarious situation, one that could have been avoided. We are ready to engage with Ministers and officers, hopeful that our past support will be reciprocated.”
The charity is seeking immediate emergency financial support to ensure the organisation can survive, albeit in a reduced capacity, maintaining YE Scotland’s crucial role in delivering enterprise education and supporting Scotland’s future entrepreneurial leaders.
‘We’re not a nice-to-have sector. We’re an essential sector‘
It all feels a bit grim (writes SCVO Chief Exec ANNA FOWLIE).
A few weeks ago, the Chancellor revealed a “black hole” in public finances across the UK and announced the end to the universal winter fuel allowance. This week the Cabinet Secretary for Finance announced significant cuts to programmes this year to enable the Scottish Government to fund public sector pay deals.
On Wednesday, John Swinney took to the lectern in the Scottish Parliament to present his first Programme for Government, having watched them being delivered from different seats across the Scottish Parliament in the previous 24 years.
I’m sure that was a novel experience for him, but I’m left with a sense of déjà vu.
There is no doubt that parts of our public sector need reform. It’s been more than 13 years since the Christie Commission said that reform must empower individuals, integrate service provision, prioritise expenditure on prevention and increase shared services. But have we seen significant shifts, or have the deckchairs just been rearranged and repainted while pointing towards little ‘pilots’ as evidence of progress?
The voluntary sector is often closest to the most vulnerable people in our society and best placed to support them, including helping them to navigate the baffling complexity of some public services.
Hundreds of organisations are rooted in communities, supporting families to help address the First Minister’s top priority of tackling child poverty. Indeed, the sector will be key to achieving all four of the First Minister’s priorities.
However, with resources increasingly being pulled into the public sector, much of the voluntary sector is resigned to getting scraps from the table.
With years of static funding, an inability to keep pace with public sector pay and constant inability to plan because of a lack of Fair Funding, it does feel like we’ve reached a crisis point.
There is no doubt Government sometimes needs to make difficult choices, but they’re avoiding the hard ones. If we are to turn the rhetoric on addressing poverty and public service reform into reality, we can’t expect current systems and structures to deliver the radical change we need, and we can’t imagine that the public sector can do it all alone.
Public sector staff deserve to be paid fairly, but the voluntary sector deserves to be treated fairly. We deserve more than warm words.
We need to channel the limited resources we have to the experts. People are the experts in their own lives – and most know what they need.
Those at the front-line know how best to support them, but we need to challenge the practice that the public sector is prioritised without truly thinking about how ‘public services’ are best delivered, and by whom.
We’re not a nice-to-have sector. We’re an essential sector.
Tomorrow’s Programme for Government from the Scottish Government must include urgent action to deliver multi-year funding and progress Fair Funding to support voluntary organisations, their staff and their volunteers, and the people and communities our sector works with, says SCVO.
SCVO and colleagues across the voluntary sector welcomed the Scottish Government’s commitment to deliver Fairer Funding for the sector by 2026, including exploring options to implement multi-year funding deals.
Despite this renewed focus, 18 months on from the policy prospectus, there has been little progress.
In the Programme for Government (PfG) action is urgently needed to deliver multi-year funding and progress Fair Funding to support of voluntary organisations, their staff and their volunteers, and the people and communities our sector works with.
Background
For over a decade, the Scottish Government has recognised the need for multi-year funding, committing to longer-term funding for the voluntary sector across multiple government strategies, including within several Scottish Budgets and Programmes for Government, and the Economic Strategy.
In April 2023, the Scottish Government’s policy prospectus, New leadership – A fresh start, renewed these ambitions, committing to delivering Fairer Funding for the sector by 2026, including exploring options to implement multi-year funding deals. This was followed in May 2023 by a commitment in the Medium-Term Financial Strategy to adopt multi-year spending plans.
Despite this renewed focus, 18 months on from the policy prospectus, there has been little progress. The most recent Scottish Budget made no further commitments, deferring action on any multi-year funding to the upcoming Medium-Term Financial Strategy, and making no reference to voluntary sector funding.
The problem
It is widely understood that our sector is facing unprecedented challenges. Years of underfunding and poor funding practices, and crises such as the pandemic, and the cost-of-living crisis have put the sector under increasing pressure, exacerbating financial and operational challenges.
The running costs and cost-of-living crises continue to put pressure on voluntary organisations – with demand for services increasing, costs rising, and financial uncertainty ongoing.
From August 2021 to April 2024, the proportion of voluntary sector organisations reporting financial challenges has increased from 47% to 77%.
Over a third (36%) of organisations have reported having made use of their financial reserves in the 3 months leading into April 2024, a 4% increase compared to the same period in 2023. Depleting reserves for recurring costs is not sustainable, with 60% of the organisations sharing that continuing to use reserves was unsustainable for their organisation.
As costs have risen for voluntary organisations over the past three years, so have demands on the services that they provide for the most vulnerable people in society. In August 2021, 56% of organisations reported an increased demand for core services and activities, rising to 63% by April 2023.
The most recent Third Sector Tracker results were published earlier this month and cover the three months to April 2024.
By April 2024, the Third Sector Tracker found:
62% of organisations believed that rising costs had affected the ability to deliver core services or activities since December 2023.
47% of organisations reported cost increases in their top three challenges.
33% of respondents had not been able to deliver all their planned services in the preceding 3 months.
Only one third (32%) of respondents have been able to meet all of the increased demand for their services in the preceding 3 months. For the organisations who had been unable to meet increased demand, the main difficulties included: staff capacity (54%); raising funds to meet the demand (50%); and volunteer capacity (41%.).
As local councils fund far more voluntary organisations than Scottish government, the fallout from the local government settlement will also have a significant impact on voluntary organisations, further exacerbating these pressures. Similarly, any reduction in local services will result in further increased demand for some voluntary organisations.
The Emergency Budget Response has also left organisations awaiting confirmation of Scottish Government funding vulnerable.
The solution
SCVO and colleagues across the sector welcomed the Scottish Government’s commitment to delivering Fairer Funding for the sector by 2026, including exploring options to implement multi-year funding deals. Without action in the Programme for Government (PfG), achieving this target becomes increasingly unlikely.
A longer-term funding model for the voluntary sector across all Scottish Government departments.
Define multi-year funding for voluntary organisations as a three-year minimum commitment.
Record progress by collecting and publishing what proportion of grants and contracts are delivered on a multi-year basis and accommodate other essential Fair Funding elements.
To be meaningful and support a sustainable sector, multi-year funding must also recognise and incorporate other essential Fair Funding elements including:
Flexible, unrestricted core funding
Inflation-based uplifts
Accommodate at least the Real Living Wage and uplifts on par with those offered to public sector staff.
Full costs recovery, which includes core operating costs.
Long term funding should also be provided to local authorities, to allow them to enter into multi-year agreements with voluntary organisations. Between one quarter and one third of voluntary organisations receive funding from local authorities.
Without these commitments, achieving “Fairer Funding” by 2026 becomes increasingly unlikely.
To make and monitor progress, it is also essential that the PfG takes action on transparent funding, including developing timelines, goals, and actions to both monitor progress, and ensure progress can be scrutinised by the voluntary sector and Parliament.
Testimonials
“Like all voluntary organisations, we have very short-term funding, so while our contracts are on paper secure, everyone knows their job is only as secure as the current piece of short-term funding” – Registered charity
“Everything we do is dependent on funding, and amounts are often not confirmed until very late in the financial year” – Registered charity
“Due to annual funding from Scottish Government, which doesn’t cover our core costs, recruitment is often on short-term contracts or is subject to ongoing funding, of which there is no guarantee” – Voluntary sector intermediary
Conclusion
Scotland’s voluntary sector is an employer, a partner, and a vital social and economic actor central to delivering on the Scottish Government’s three missions of equality, opportunity, and community.
The Programme for Government is an opportunity for the First Minister and the cabinet team to recognise and support the many contributions of voluntary organisations, their staff and their volunteers across Scotland by making progress towards the Fair Funding our sector desperately needs.
To achieve this the Scottish Government must commit to progressing multi-year funding, develop timelines and goals, and make plans to monitor progress. To support a sustainable sector, multi-year funding must also recognise and incorporate essential Fair Funding elements.
Additional information
SCVO’s full proposals for the 2024/2025 Programme for Government cover two areas and can be found here:
A call to value our workforce & embrace Third Sector solutions with immediate increased funding
With over 40 years of experience in various roles within the health and care systems, from a clinician in the acute sector to working in primary care, and now as the Chair of LifeCare Edinburgh, I have witnessed significant changes and challenges (writes LORNA JACKSON-HALL).
The recent impact of financial cuts to third sector care contracts in Edinburgh, along with the recent changes in the Westminster Government, compel me to share some thoughts on short-term solutions as we work towards long-term strategies.
Valuing Our People
It’s crucial to value everyone involved in our health and care systems, both the workforce and those we serve.
The NHS faces immense pressure, primarily driven by the need to manage patient flow into hospitals and expedite their discharge into supportive environments. The workforce crisis, identified over a decade ago, continues to escalate.
An ageing population among clinical staff, coupled with cuts in university courses, training places, and bursaries, has led to a crisis in the number of Allied Health Professionals, Nurses, and Doctors.
Addressing this workforce gap will take approximately ten years as we train and equip new staff with the necessary skills.
Maximising the Potential of the Care Staff Workforce
In the interim, we must focus on our care staff workforce in both social care and the third sector.
It’s essential to examine the health economics of utilising this workforce to its full potential. These dedicated individuals perform incredible work, significantly contributing to keeping people supported in their home environments, thereby delaying or even preventing hospital admissions.
Programmes such as befriending services like Vintage Vibes and buddying services for isolated individuals, play a vital role in enhancing the health and well-being of our older population.
Urgent and immediate increased funding for third sector organisations such as LIfeCare Edinburgh could help to alleviate some of the current pressures on hospitals.
These organisations run meals on wheels, care at home services, and day services, all of which support frail elderly individuals and/or those living with dementia their carers to remain at home longer.
Impact on Hospital and GP Services
Implementing these measures would help reduce the influx of patients into hospitals and improve the discharge process, allowing acute hospitals to focus on reducing elective lists.
This, in turn, would ease the burden on GP Practice services, enabling them to prioritise preventative care. Such a shift is essential to support the growing number of people living with multimorbidity in Scotland today.
By valuing our workforce and maximising the potential of third sector organisations through true partnership working and appropriate funding, we can make meaningful progress in addressing the immediate challenges while laying the foundation for a healthier future.
Growing Climate Confidence has been supported by the Scottish Funders’ Forum
A leading third sector climate project offering vital support to charities and voluntary organisations looking to tackle the climate crisis will be funded for another two years, it has been announced.
This initiative is delivered by the Scottish Council for Voluntary Organisations (SCVO) on behalf of the Third Sector Net Zero steering group, with advisory input from Scottish Funders and Net Zero experts.
The £200,000 awarded will cover strategic support, raising awareness of the campaign, and training provided by others in the sector. Funding has been provided by the Corra Foundation, the National Lottery Community Fund, the Robertson Trust, SSE and the William Grant Foundation.
This new funding – over two years from June 1, 2024 – will provide fully funded carbon reduction and climate resilience training, self-serve digital tools to help organisations develop a net zero action plan, and strategic support to influence the funding landscape for climate work.
Beth Mukushi, SCVO head of support services, said: “The Growing Climate Confidence project helps third sector organisations understand and own their responsibilities to take action on climate change.
“We know that the majority of organisations care deeply about the climate emergency, but only 42% of organisations have policies in place to reduce their own carbon emissions.
“Our net zero scorecard has given over 400 organisations a tailored action plan, and this funding will help us reach more organisations, offer wrap-around training and support, and link organisations into existing networks of climate action across the country.”
Kate Still, chair of The National Lottery Community Fund Scotland, said: “We are delighted to be able to support SCVO in expanding its Growing Climate Confidence Initiative, thanks to funding raised by National Lottery players.
“Through our funding we aim to help communities become more environmentally sustainable and to make the changes that help support a healthy planet.
“SCVO has great experience and expertise in supporting Third Sector organisations to take action on the climate emergency, and the expansion of this initiative will build the momentum and equip many more Third Sector organisations with tools to assist them on their net zero journey.”
An SSE spokesperson said: “The climate emergency is one of society’s most pressing challenges. We know from our community grant making that many third sector organisations want to do their part in tackling it but don’t know where to start.
“The Growing Climate Confidence website and support programme helps them get clarity on what to focus on, and how. SSE is therefore proud to support the roll out and further development of this important work with partners.”
Nick Addington, chief executive of the William Grant Foundation, said: “We believe that all charities and social enterprises have a role to play in helping achieve a fair transition to a sustainable and climate-adapted future – whatever their mission – so we’re really pleased to be able to partner with other Scottish funders to enable SCVO to enhance its support to Scotland’s third sector around climate action.”
In April 2023 the Scottish Government committed to fairer funding by 2026. Despite the urgent need within the voluntary and charity sector – one year on there has been little progress.
Last month, after a discussion a few weeks ago with the Clerks of the Social Justice and Social Security Committee, SCVO received the very welcome news that the Committee would focus their Pre-budget scrutiny on voluntary sector funding.
The Committee want, “to examine how the Scottish Government’s approach to fair and efficient funding can contribute to the continued effectiveness of the third sector”, having heard about the funding challenges facing the sector.
For almost a decade, the Scottish Government has recognised the need for multi-year funding, committing to longer-term funding for the voluntary sector across multiple government strategies.
In April 2023 the Scottish Government’s policy prospectus New leadership – A fresh start, the Cabinet Secretary for Social Justice, Shirley-Anne Somerville MSP committed to achieving fairer funding by 2026:
“Working with my Cabinet colleagues, I commit that by 2026 I will have… Progressed Fairer Funding arrangements, including exploring options to implement multi-year funding deals, enabling the third sector to secure the resilience and capacity it needs to support the transformation and delivery of person-centred services for Scotland’s people and support our thriving social enterprise economy”.
Despite this renewed focus – and the urgent need within the sector- one year on from the policy prospectus, there has been little progress.
Our sector faces unprecedented challenges. Years of underfunding and poor funding practices, and crises such as the pandemic, and the cost-of-living crisis have put the sector under increasing pressure, exacerbating financial and operational challenges – 76% of organisations now experience financial challenges, while the number of organisations reporting that rising costs are having a negative impact on their ability to deliver services continues to grow.
To support voluntary organisations, our staff and volunteers, and the people and communities our sector works with, the Scottish Government must both take action and develop timelines and goals to monitor progress towards fairer funding.
SCVO defines Fair Funding as a long-term, flexible, sustainable, and accessible approach to funding.
To make meaningful progress towards Fair Funding the Scottish Government should:
Commit to a longer-term funding model for the voluntary sector across all Scottish Government departments.
Define multi-year funding for voluntary organisations as a three-year minimum commitment.
Record progress by collecting and publishing what proportion of grants and contracts are delivered on a multi-year basis and accommodate other essential Fair Funding elements.
To be meaningful and support a sustainable sector, multi-year funding must also recognise and incorporate other essential Fair Funding elements including:
Flexible, unrestricted core funding
Inflation-based uplifts
Timely notification and payments
Full costs recovery, which includes core operating costs.
As local councils fund far more voluntary organisations than Scottish government- between a quarter and a third of voluntary organisations receive funding from local authorities- mulit-year funding should also be provided to local authorities, to allow them to enter into multi-year agreements with voluntary organisations.
Our sector is an employer, a partner, and a vital social and economic actor central to delivering the Scottish Government’s aspirations.
To recognise and support the many contributions of voluntary organisations, their staff, and their volunteers across Scotland urgent progress is needed or the goal of achieving fairer funding by 2026 becomes increasingly unlikely.
As part of the Committee’s Pre-budget scrutiny inquiry the Committee will hold two workshops in Dundee on Wednesday the 21st of August for voluntary organisations who receive funding from statutory funders (such as Scottish Government, health boards, local authorities).
