Charitable and Voluntary Sector

Lord Bilimoria Excerpts

Thursday 30th April 2020 Lords Chamber

[Lord Bilimoria (CB)]

My Lords, the charity and voluntary sector, against the background of a decade of austerity, finds itself under particular strain during the Covid-19 epidemic, there is no question. It employs nearly a million people, and accounts for almost 1% of GDP, as the noble Lord, Lord Addington, said, yet there will be a shortfall of £4.3 billion. The Government are, thankfully, putting in £750 million, but does the Minister agree that much more support is needed? In short, those who had little before have even less now.

The sector has always been inspirational; just look at Captain Tom Moore, celebrating his 100th birthday today—happy birthday, Captain Tom—who has raised £30 million for the NHS. Charities need to deliver. There has been a shock of income to the donor bases. Organisations need a guaranteed stable floor of income for many years. The focus on large, often umbrella, charities offering commonly understood services means that funding is not finding its way to smaller, local and more bespoke charities. Unless their stability can be guaranteed, it is these crucial local charities, which are often the glue in their communities, that will close. The demand for services will increase post Covid-19.

I am chancellor of the University of Birmingham, and our research shows, broadly, that charities that depend on annual revenue have been more likely to pause grant-making, while those with existing large endowments are taking a longer view and preparing to ride out the storm. Universities have launched their appeals to accelerate their world-class research, which has been supported by alumni and other stakeholders; we at the University of Birmingham are launching our own appeal today. Can the Minister say whether charities will be able to access the Government’s CBILS loans?

Faiths United, which includes as a member the Zoroastrian Trust Funds of Europe, of which I am a patron, has said that faith communities lie at the heart of the charitable and voluntary sector, with almost 70% of the UK population affiliating to a particular religion. Some 27%—almost 50,000 charities—of all charities in the UK are faith-based. Maurice Ostro, chair of Faiths United, said:

“Covid-19 has affected every faith community in the UK. Each community has suffered through the loss of loved ones, people falling ill and those who are struggling through isolation, loss of income or in some other way … We are rallying round in unity to say, whatever our faith, we are one United Kingdom.”