Community and Voluntary Sector Funding

Carolyn Harris Excerpts

Tuesday 24th November 2015 Westminster Hall

[Carolyn Harris (Swansea East) (Lab)]

May I, too, congratulate my hon. Friend the Member for Bradford West (Naz Shah)? May I also say what a great pleasure it is to serve under your chairmanship, Mrs Moon?

Charities play a vital role in society, and they make a significant economic contribution. The sector generates gross value added of £12 billion per year. The economic value of UK volunteering is estimated at nearly £24 billion. However, given that approximately half of all charities depend on central or local government funding, they expect to be hit particularly hard by any budget reductions over the next five years. Charities will be looking closely at the spending review for details of where funding may become even more challenging. It goes without saying that public service cuts will have a significant knock-on effect on charities.

We have heard a lot about the Big Lottery Fund. To shed some light on the issue, let me add that it is one of 12 distributors of the national lottery’s good causes funding. However, there is a strong indication that Her Majesty’s Treasury is planning to reduce the Big Lottery Fund’s share of national lottery funding from 40% to about 25%. That, arguably, would mean the redirection of funding towards the arts and sports because of DCMS spending reductions. The reduction in the Big Lottery Fund would be £300 million a year. We all recognise the value of the arts, sport and heritage, but support for those causes should not be at the expense of community groups.

The move would hit smaller groups hardest, because 90% of BLF grants are smaller than £10,000. It would particularly affect community projects such as village halls, playgrounds and youth clubs, as well as targeted interventions where there are social problems. Examples are isolated older people, domestic violence and vulnerable children—I could go on, but I think I have made my point. As BLF funds are usually committed years in advance, an immediate reduction in the national lottery’s contribution to it could cause it to close its books to new funding applications for several years.

In my constituency a total of 251 projects have been funded, with a total value of nearly £4 million. In the whole of Swansea 993 projects have received funding, with a total value of £20 million. One of those is an organisation called Hands Up For Down’s, a parent-run group for children with Down’s syndrome and their parents and carers. It is based in Swansea and has been running since May 2014. It simply offers a support network to the parents of children with Down’s syndrome, as well as an opportunity for the youngsters to get together to play freely and socialise. Sian is the mum of Iolo, who uses the project, and she said:

“We are facing many challenges but with the support of Hands up for Downs and the Big Lottery Fund we don’t feel we need to do it alone”.

I hope that the Government will think about all the Iolos and Sians in the country, who benefit from the Big Lottery Fund, when they wield their axe and do whatever they intend to do that will affect voluntary sector funding.