Community and Voluntary Sector Funding

Debate between Dawn Butler and Michelle Donelan

Tuesday 24th November 2015 Westminster Hall

[Michelle Donelan]

The cuts to youth services are for a totally different debate, because they are not purely about volunteering. There is a vast variety of youth services depending on the different areas and models involved. There is also the question of replacement: in many areas, including mine, the council has worked closely with the community to offer a replacement service that is the most cost-effective and efficient for the people using it.

In addition, the Government are providing funding for campaigns such as the national Step Up To Serve #iwill campaign, which aims to make social action part of the lives of as many 10 to 20-year-olds as possible. More remains to be done, however, and I am quite shocked that there is still no formal encouragement in respect of the value of getting volunteering into schools, through things such as voluntary placements. We have always had a system of work placements, but there has never been a system of voluntary placements as a formal mechanism in the UK. I have approached my local volunteer centre about the issue, and we are trying to do something with willing schools in my constituency.

We need to change the ethos and encourage more businesses to allow voluntary days, which would build on the Government’s initiative on that. There have been other great investments, which we should not fail to mention, such as Big Society Capital, tax relief for social investment, social impact bonds and £70 million for social investment in the investment and contract readiness fund.

[Dawn Butler]

In addition, business rate relief for charities is worth £1.7 billion. Does the hon. Lady not think that they should be excluded from the Government’s plans for rate relief? Those plans will hinder charities’ ability to provide services to the community.

[Michelle Donelan]

That is one thing we could look at, but it is not the only thing, as I shall get on to in the rest of my speech.

More needs to be done and it is time we looked at gift aid in particular. On average, the charity sector loses almost £1 billion a year from people not opting into gift aid. Perhaps we should not only promote it more as a mechanism, so that people understand it, but look at the logistics of having an opt-out instead for the working population. That might be one solution.

When compared with the state, charities are often far better placed to deliver services and value for money, as well as being far more knowledgeable about those services. The charities also provide specialised local knowledge and learning for volunteers. Young people can gain skills and a preparation for life and employment, while older volunteers can impart their own knowledge and reduce the training burden carried by charities. Charities may also reduce demand on the NHS as people stay active and healthier during volunteering. There are thousands of voluntary organisations in Wiltshire that bring in money from inside and outside the county in addition to Government funding.

While central Government may be able to replicate the functions of a local charity in part, that is not sustainable. That also does not take into account the unseen costs of not funding those charities, such as the loss of expert knowledge and the unquantifiable but large wider social benefit that community charities provide. I welcome the Government’s recent initiatives, but I urge them to go further. The reality is that we will need to rely more and more on the voluntary sector in coming years, so it is imperative that we support and promote it today.