Community and Voluntary Sector Funding

Martin Docherty-Hughes Excerpts

Tuesday 24th November 2015 Westminster Hall

[Michelle Donelan (Chippenham) (Con)]

Thank you, Mrs Moon.

I commend the hon. Member for Bradford West (Naz Shah) for the subject of the debate. I am extremely passionate about it because my constituency has some of the highest rates of volunteering in the country; more than 1,500 voluntary opportunities are being advertised there at the moment. Volunteering is deeply embedded in the fabric of the Wiltshire community. In fact, it is the very glue that binds it, filling the gaps left by the state. Voluntary organisations are essential for those two reasons and I welcome the Government’s support for the sector, although I encourage them to protect and support its work further.

Given a ballooning state, a huge deficit and an ageing population, the truth is that we will not be able to sustain the existing model and will be unable to continue providing all the levels of service that we have now. We will need to look to the voluntary sector for more and more, so it is imperative that we support and strengthen the industry today. In addition, as the hon. Lady said, charities save the state money in the long term.

For example, Wiltshire Mind, which is based in my constituency, receives no Government funding, but even the Avon and Wiltshire Mental Health Partnership NHS Trust acknowledges the charity’s vital work and how it reduces pressure on services. Alzheimers Support and the Alzheimer’s Society are prime examples of charities that achieve better outcomes than many state-run organisations, because they are specialised in their sector. Volunteer centres act as pivotal hubs, promoting and filling roles, and they often excel at rehabilitation of ex-offenders and back-to-work programmes.

As we all know, the recession has hit the voluntary sector hard; its total income has fallen in real terms every year since 2009-10. That is because of not only the reduction in Government spending, but the reduction in giving—an obvious symptom of recession. The National Council for Voluntary Organisations estimates that the rate of giving fell by around 10% during the recession, and it has still not recovered. Individuals are the voluntary sector’s single biggest source of income, hence the impact.

Funding is not the only issue, and that is the point that I want to labour. We also need to encourage volunteering, especially among the young and the elderly. In 2014-15 47% of adults in the country did some form of informal or formal volunteering. Informal volunteering is most prevalent among 26 to 34-year-olds and formal volunteering among the young—those of 25 and under. That means that a huge number of people in the retired sector with time and expertise who could get involved. Volunteering would also help some of them to ward off loneliness and other such attributes.

[Martin John Docherty (West Dunbartonshire) (SNP)]

I recognise some of what the hon. Lady is saying, but does she recognise that such volunteering activity requires investment? It does not come for nothing.

[Michelle Donelan]

Exactly. I am trying to make that point and will continue to, but I am also saying that we can throw money at things, but it is not only a case of money—we must also promote the voluntary sector to ensure that we have the volunteers for tomorrow.

--- Later in debate ---

[Martin John Docherty (West Dunbartonshire) (SNP)]

It is a pleasure to serve under your chairship, Mrs Moon. I want to mention that I am vice-chair of the all-party group on civil society and volunteering, along with the hon. Member for Clwyd South (Susan Elan Jones), whom I am delighted to see here today. I congratulate the hon. Member for Bradford West (Naz Shah) on securing the debate, and I am delighted to speak for the Scottish National party, which, for the record, I want to congratulate on its resounding victory at the general election.

The subject of the debate is a critical issue for communities across these islands. As my constituency is in Scotland, I am keen for Members from other parts of the UK to hear briefly about differing approaches to supporting the community and volunteering sector. I believe that the approach in Scotland is based on common values, as the voluntary sector seeks to play its part in the civic life of the communities in which it was founded and that it engages with and serves. The relationship between local government and the voluntary sector in Scotland is also extremely important, given the sector’s role in Scotland’s community planning partnerships and in developing all 32 single outcome agreements. If hon. Members do not know what those are, I advise them to look at those interesting documents, which place the sector in a critical and fundamental role in Scotland’s public life.

The challenge we now face as we approach the comprehensive spending review, which has been put well by many Members, is a decision by the UK Government that will reduce the funding for the most local of organisations—critically, through funds such as the Awards for All programme and Investing in Ideas—through funding reductions to the Big Lottery Fund. That fund enables local volunteer-led organisations to deliver support to communities at the coalface of community cohesion.

In Scotland, the Big Lottery Fund awards more than 2,000 new grants every year to organisations ranging from grassroots volunteer-led community groups to major charities. Its work is funded through an average annual budget in Scotland of £70 million, and it has recently come to the end of a five-year strategy. The fund has existing financial commitments to more than 3,000 projects in Scotland. Last year, more than 116,000 people in Scotland took part in small grassroots projects funded by the fund. Nearly 2,500 jobs, mainly in registered charities and community organisations, are at least partly funded by grants from the Big Lottery Fund, almost 780 of which are full-time posts solely supported by those grants. As we approach the comprehensive spending review, our grave fear is of a possible reduction in that funding. I hope the Minister will take this opportunity to deny the possibility of a reduction of national lottery funding to the Big Lottery Fund from 50% of moneys raised to 25%.

Without doubt, the community and voluntary sector in Scotland and the rest of the UK makes a direct impact on the economy; in Scotland, that impact is worth nearly £2.5 billion. Our Government in Edinburgh are committed to working—I should add, with cross-party support—with sector groups to create a fairer and socially just Scotland. That is why they have created a new third sector forum this year, bringing together representatives to consider ideas about the sector’s future. The Scottish Government are determined to work with the sector to remove the barriers that prevent people from reaching their full potential—critically, with regard to volunteering. The voluntary sector is crucial to achieving social justice, and its organisations are closing the gap in employment and health inequalities and addressing the significant problems of poverty in my own constituency of West Dunbartonshire and across the country. I will mention just a few specifically: the Independent Resource Centre, which is celebrating its 25th anniversary; West Dunbartonshire CAB; the Vale of Leven autism group; and the Ben View centre.

Importantly, in February this year, the Scottish Government announced £1.1 million of investment for a new volunteering support fund, which will, we hope, train and recruit 3,000 volunteers from disadvantaged backgrounds to work at 110 projects across Scotland, seeking to ensure equal access to civic participation. That is on top of an increase in investment in the community and volunteering sector in Scotland, from 2001 to at least 2011, from £2.1 billion to £4.5 billion.

In Scotland, 1.3 million volunteers undertake roles in every community and in all sectors, bringing significant individual and community benefit, as volunteering does across the rest of the UK. Volunteers have a critical role in leading change and empowering our communities. We now have the opportunity, throughout the UK, for growth in volunteering through a renewal that connects with the passions, interests and motivations of individuals and brings about public value.

Volunteering provides enormous value to society in general and significant benefits to the wellbeing of those who participate. In Scotland alone, it is estimated that volunteers contribute £2.6 billion to the economy. More recent findings about the direct impact of volunteering on individual wellbeing indicate exceptional benefits. Any cut to the Big Lottery Fund in the comprehensive spending review will undermine the very source of our community and voluntary sector—the volunteers by whom so much is delivered for so little.

As is the case in the rest of the UK, the majority of these organisations in Scotland are run by volunteers, in service delivery roles as well as management roles, with volunteer committee members and, on occasion, charitable trustees. The sector has considerable experience and understanding of working with individuals and communities in developing solutions, and thus mobilising the skills and knowledge of communities. That co-production model for solutions is essential to successful prevention, and I am sure that hon. Members here today would like to see similar models in their own constituencies. While the UK Government are poised to cut funding, the Scottish Government are investing in the enterprise ready fund, which distributed nearly £6 million between 2013 and 2015 to help maintain, develop and grow the sector. I am sure other Members will also want to look at the model of the social entrepreneurs fund.

The Big Lottery Fund in Scotland currently supports more than 2,000 organisations. It uses the good causes funding it receives from national lottery ticket sales to provide £75 million of funding every year to projects that tackle a wide range of issues including poverty, loneliness and ill health. The jobs partly funded by the fund are also a critical issue. There has been speculation that cash will be taken from the lottery fund to mitigate cuts to arts and sports resulting from the departmental budget cuts to be announced in the comprehensive spending review. Similar tactics were used for the Olympics in 2012, with a massive £638 million “borrowed” by the Government, a sum that has yet to be paid back.

The national lottery is independent of the United Kingdom Government, and that Government should not be raiding the Big Lottery Fund to subsidise their departmental spending cuts. The UK Government’s austerity agenda is focused on cutting public services and social security, no matter the cost to people. It is clear that any cuts to the Big Lottery Fund will have the greatest impact on the most vulnerable in our society and will exacerbate the impact of other cuts across our communities.