voluntary sector – Page 2 – The NEN

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:

inform governance and city partnerships
assert the value of the Sector
shape investment
support change
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

EVOC announces new CEO

EVOC (Edinburgh Voluntary Organisations’ Council) is delighted to announce the appointment of a new Chief Executive Officer, Bruce Crawford.

Following a comprehensive recruitment process, led by EVOC’s Board and involving representatives from the Third Sector and Edinburgh’s Third Sector Interface partners (Edinburgh Social Enterprise Network and Volunteer Edinburgh), Bruce will take up the CEO position today – Monday 9 December 2024.

Bruce brings a breadth of strategic leadership experience to the role, as a CEO, Trustee and Volunteer. As Director of Grange Associates, he has supported charities and social enterprises to develop and succeed, offering advice in a range of areas including governance, strategy, policy, change management, diversity, risk management, business planning and sustainability.

As Chief Executive for Scottish Curling, Bruce led successful negotiations that secured £2m funding for covid recovery from the Scottish Government and played a key role in developing strategies and campaigns to ensure that the Olympic profile and success were capitalised to maximum effect.

He is also a member of the Sustainability Committee for World Curling and is the chair of the James Gillespie’s Trust.

Diarmaid Lawlor (EVOC Convenor) said: ““We are delighted to appoint Bruce to lead EVOC. This has been a competitive and thorough recruitment process.

“The core of strong Third Sector organisations is clear purpose, tangible impacts, sustainable finance, and, particularly relevant to this situation, great people.

“Bruce’s appointment completes EVOC’s internal staffing restructure and we look forward to working with him and the wider Third Sector to finalise our strategic priorities, working towards ‘a strong sector for a strong city’.”

Responding to news of his appointment, Bruce said: “I am delighted to be appointed to lead EVOC as its new CEO, working with the staff and board, listening to members and consulting with stakeholders as we support the voluntary organisations that serve our communities.

“I am looking forward to hearing from colleagues across the sector as we develop our new strategy and set priorities, which will help us to make an impact and address the challenges that lie ahead.”

EIJB funding crisis: Edinburgh Third Sector Interface update

Dear colleagues

I am writing to you to provide an update on Edinburgh TSI* activity since the EIJB Board meeting on November 1 and to invite your collaboration on the next steps.

Though it was welcome that the IJB agreed not to proceed with an in-year cut to the Third Sector Grants Programme, the process leading to that decision, and risks flowing from the meeting on November 1 remain very challenging.

Resolving the funding position for the Third Sector Grant recipients, and all third sector funding from the IJB for 2025/6 alongside co-designing the conditions of success for any future model of working in partnership is a key priority for the Sector, and as a consequence, for the Edinburgh TSI.

We believe the IJB proposals need to be part of a wider strategic conversation in the city about how we invest in the Third Sector, ensuring we have the right investment in the right places with the right capacity to deliver the most impact.

Edinburgh TSI letter following November 1

In the lead-up to the November 1 IJB meeting, we worked collaboratively with the Edinburgh Community Health Forum, and others across our sector to draw out information for briefings from affected TSOs through phone calls, questionnaires and meetings. This concluded with a detailed rebuttal of arguments in Paper 7.2, as presented to the IJB as well as a TSI deputation. The deputation sought to build on the arguments put forward by organisations for time to plan better and work differently.

Following that meeting, I wrote on behalf of the TSI to the Chair of the EIJB, the leader of the Council, the CEC Chief Executive and the NHS Lothian Chief Executive. I emphasised the need for:

Resetting investment: there is a need for a whole city conversation on a sustainable financial settlement for the Third Sector
Reforming ways of working: there needs to be a better approach to commissioning, valuing and supporting The Third Sector through change
Repairing relationships: recognising and valuing the value of the Third Sector contribution to communities is an important part of relationship development

Edinburgh IJB engagement on Third Sector Grants and contracts

Agreeing on a funding settlement for 2025/6 is a key objective for the Third Sector, both for the Third Sector Grants Programme and for the larger contracted services with Third Sector Organisations.

There are different possible scenarios. A best-case scenario might be a one-year continuation of the grants programme while time is dedicated to coherently and collaboratively designing a sustainable “replacement” which enables the IJB to purchase what they need and want from the Third Sector while providing foundational funding for the wider sector.

This will require a series of conversations, some sense of prioritisation and scoping of how to manage change. The big challenge is time. Initial discussions are progressing between Edinburgh TSI and the IJB on immediate priorities, and a meeting has been invited with CEC.

To inform the discussions on funding, the Edinburgh TSI met with a group of Third Sector partners to scope priorities. This includes articulating the real consequences of making any cuts on the Sector and its ability to deliver outcomes with communities; seeking confirmation on the priority focus for the IJB in 2025/6, and inviting discussion on options around the best use of our joint resources through a process of co-design. These conversations will need to be ongoing. We welcome your views as to how best to shape them.

Edinburgh IJB engagement on Public Social Partnership

Any change to a way of working to a Public Social Partnership or some other commissioning model by the IJB demands an investment of time up front.

This time is needed to confirm commitment to co-design to ensure that any partnership is a partnership, and any working relationship is founded on clear conditions for success.

This needs an investment in learning from other PSP’s in the city, what worked, and what didn’t, and it needs clarity on roles and responsibilities. In the meantime, a clear transition arrangement needs to be set out, describing how current commitments and contracts are to be managed.

Following the November 1 meeting, the IJB have been reviewing budget and partnership proposals. They have invited a group of Third Sector representatives to discuss how to progress partnership working together on shared issues and challenges.

The purpose of the meeting is to start a conversation about how best to work together, who to engage and what success looks like. The next steps will need wider conversations within the sector and between the sector and the IJB, and we invite your views as to how best to shape this.

Reference Group Proposal

The Third Sector has important Board roles on the EIJB and other city institutions. However, at the EIJB meeting, Cllr Pogson asked if there was enough Third Sector representation on the Board.

A reformed Board may be a future possibility, but meanwhile, it is critical to be able to support the people who occupy these Board seats so the voices of the sector feed into them, support and challenge them.

This is particularly the case in the next year or so where there will be very challenging issues and decisions to consider, with significant impact for the Sector.

To try and make sense of where to best put attention around these issues, we have convened a small, embryonic group of sector people. We aim to build this into a Reference Group with representation from across the Sector to distil and amplify the voices of the sector around priority issues. This will evolve over the next few months, and we invite your collaboration.

Our initial sense is that the areas of focus are about:

Asserting value: articulating the impact of the sector with fair methods of measurement
Supporting resilience: co-designing ways of working for sector sustainability
Shaping investment: making the case for ongoing investment around sector need
Informing governance: supporting Third Sector Board seats on city partnerships

We have developed Draft Terms of Reference for this Group, which builds on the current issues around the IJB but also focuses on the Third Sector as a whole.

Next steps

In sharing this context and background, it is my intention to work collaboratively to find a solution to the real risks we are facing as a sector.

In this context, I invite you to get in touch with initial feedback on the role of the TSI in shaping the Reference Group. In the meantime, Edinburgh TSI colleagues will continue to convene the sector through forums, networks and meetings, alongside the Edinburgh Community Health Forum.

Together, we can also continue to highlight the risks and impact of this loss of investment in the third sector, both individually and collectively.

Please get in touch and get involved. We recognise that our strength is in working together and supporting each other across our rich, diverse and talented Third Sector. I look forward to working with you.

DIARMAID LAWLOR,

Chair of the Edinburgh TSI

* The Edinburgh Interface is a collaboration between Edinburgh Voluntary Organisations’ Council (EVOC), Volunteer Edinburgh (VE), and Edinburgh Social Enterprise (ESE).

Short-term funding cycles are creating financial instability for Scotland’s charities, says Holyrood Committee

SCVO: Fair Funding needed now more than ever

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.”

The Committee report:

sp-third-sector-funding-principles Download

DECISION DAY

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

Libertus Services – Positive Futures volunteering project

LCIL – Lothian Centre for Inclusive Living

MECOPP – Jump Start project

MECOPP – BME Carer Support

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.

Edinburgh Community Health Forum calls for immediate halt to ‘misguided’ funding cuts

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 below for meeting papers – including details of the cuts being recommended:

EIJB-Public reports pack 01112024 Download

Voluntary sector fears over National Insurance hike in Budget

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.

Yours sincerely

Anna Fowlie, Chief Executive, SCVO

Celine McStravick, Chief Executive, NICVA

Lindsay Cordery-Bruce, WCVA

Sarah Elliott, NCVO

https://buff.ly/4e9XWyu

National charity faces closure with loss of up to 31 jobs

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 Soanes said: “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.

Programme for Government: Crisis point for voluntary sector

‘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.

Programme for Government: SCVO repeats call for Fair Funding

VOLUNTARY SECTOR FACING ‘UNPRECEDENTED CHALLENGES’

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.

Read SCVO’s full briefing: https://buff.ly/478TpKI

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.

Our sector continues to face unprecedented challenges.

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.

The Third Sector Tracker found:

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.
Some organisations have responded to the cost-of-living crisis by providing their staff with an increase in pay, also often from organisations’ financial reserves, a situation that is clearly unsustainable.
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.

To make progress, the PfG should commit to aligning the Scottish Government’s “Fairer Funding” principles with SCVO’s definition of Fair Funding– which was developed through significant research and engagement with Scotland’s voluntary sector. This includes commitments 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
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: