Public Sector Funding

Emma Reynolds Excerpts

Wednesday 23rd March 2011 Westminster Hall

[Barbara Keeley (Worsley and Eccles South) (Lab)]

I am pleased to have secured a debate on the important topic of the effects on the voluntary sector of reductions in public sector funding. I am also pleased to serve under you as Chair, Mr Amess.

In the current economic context, a thriving community and voluntary sector is vital. Locally, people with debt problems need their citizens advice bureau, carers need their carers centre and people need support from organisations that work with children with special needs or with people who have long-term conditions. The previous Labour Government have a proud record of support for a stronger voluntary sector. We doubled the funding to the sector from £5.5 billion to £12 billion in 2009, and created the first ever Minister for the third sector, with an office putting the third sector at the heart of Government. In addition, we gave the third sector a strong voice in Government through the Third Sector Partnership Board.

We also supported social enterprise. At the end of 2010, there were approximately 62,000 social enterprises in the UK, contributing at least £24 billion to the economy and employing 800,000 people. Labour did much to boost and encourage volunteering in our communities when we were in government. Some 850,000 charity trustees serve on the governing body of a charity, and 780,000 paid staff work in the sector to provide services and to support and encourage volunteering. There are also 2.7 million volunteers, on whom many small charities rely. For example, my local citizens advice bureau in Walkden has 20 volunteers a day working with staff who are trained debt advisers or are trained to offer legal advice.

Some 40% of adults report that they have volunteered formally at least once in the past 12 months, with 25% volunteering formally at least once a month. However, despite the coalition Government’s rhetoric about the big society, cuts in funding from central and local government are damaging the sector. It has been estimated that the voluntary sector is facing cuts of £1.1 billion just this year, rising to more than £3 billion next year. There are also real fears for the capacity of the voluntary sector. At a time when the Government are talking about localism and creating opportunities for charities and community organisations, the sector will almost certainly do less this year than in previous years.

The collaborative website, www.voluntarysectorcuts. org.uk, is mapping those cuts. One of them is a grant cut of £500,000 from the Office for Civil Society to the volunteering support organisation, TimeBank. I want to discuss that as an example of what initiatives are affected when such a cut is made. TimeBank was set up in February 2000 and was funded by the Home Office and the BBC as a support agency to inspire a new generation of volunteers. Its vision is to make volunteering part of the fabric of everyday life. In the past 10 years, TimeBank has helped and encouraged 30,000 people into volunteering. For example—this is a good example to consider at the moment—in 2004, TimeBank asked people to back London’s bid for the Olympics and 14,000 potential volunteers responded. That has now risen to 100,000 people who want to volunteer for the Olympics. In the same year, it recruited 1,900 people aged 20 to 35 for volunteering opportunities with hospices. In 2008, 1,400 parent volunteers were recruited to mentor other parents for Home-Start. TimeBank offers tailored support to anyone interested in volunteering or running a dedicated help desk and website. The organisation has established good practice and provides space for local, regional and national sharing of experience. It runs a dedicated help desk and website to signpost people towards volunteering opportunities and to increase accessibility and engagement.

TimeBank recently launched something called the volurater, which is a forum like TripAdvisor that allows people to review their volunteering experience. TimeBank says that the cancellation of its funding from the Office for Civil Society means that its support functions will be severely undermined. The staff and resources for that work have been paid for from the core funding that it receives from Government. All its other funding streams are ring-fenced for programme or project delivery, so the loss of £500,000 of grant funding puts a significant proportion of TimeBank’s work under threat. As I said, the volurater is a review tool for volunteers to rate their volunteering experiences. It aims to help to drive up standards in volunteering across the board and to give volunteers a voice. No other organisation has such a tool for volunteers, and it is now under threat.

Junction49 is also under threat. It is a web platform aimed at young people that acts as a type of Facebook for volunteers. It was set up in 2007, and it allows young people to share and develop ideas, and to make a difference in their communities by setting up volunteering projects. Junction49 has supported 1,145 young people, and helped them to volunteer through advice, support and connecting them with other like-minded people. TimeBank’s website and newsletter are also at risk. The website receives 16,000 new visitors a month, and is designed specifically to help people to volunteer. The website includes ideas and inspiration, such as a blog, a postcode search for local opportunities and a “how to get started” section. There is also a help desk that is contactable by phone or e-mail, with a dedicated staffing resource to answer questions about volunteering and help people along the way. TimeBank has a monthly electronic newsletter that is sent out to 300,000 volunteers whom it calls time givers, and it includes ideas and tips about volunteering. Regular social media activity—the type of things I have been describing—drives people to the website and raises awareness of volunteering issues and best practice. It also helps with recruiting volunteers and signposting volunteering opportunities.

TimeBank also runs programmes to match people with volunteer mentors. I shall mention two of those that are under threat as a result of the funding cuts. TimeBank has worked in partnership with Carers UK to develop a mentoring programme for new carers, who often feel overwhelmed by their responsibilities. Those two organisations are providing new carers with access to information and advice from a mentor who has been a carer themselves. A groundbreaking TimeBank project called Shoulder to Shoulder supports ex-servicemen and women returning to civilian life who have mental health problems. More than 20,000 people leave the service to return to civilian life each year, and around a quarter of those have a mental health problem. One in five of those have a mental health problem resulting from traumas and injuries that they experienced during their service.

Another valuable area of work for TimeBank is support for businesses involved in employee volunteering. Participating organisations include Sky, Virgin, Vodafone, Sony, T-Mobile and even the Cabinet Office. Years ago, I worked on such a project with the organisation, Business in the Community. I arranged community development assignments for staff from organisations and corporate companies, such as IBM and Marks & Spencer. Support for that type of volunteering from business is needed if such things are to happen. I know how valuable that is, both for the employee who volunteers and for the community organisation for which they volunteer. For instance, in 2008, TimeBank organised T-Mobile employees to help young people who are not in education, employment or training set up their own projects and design a mobile application to tackle a social issue. That work could also be under threat.

In December 2010, the Minister posted a message on Twitter congratulating TimeBank on its 10th anniversary. Cutting one sixth of its funding three months later is hardly the right way to support an organisation with a 10-year track record of innovative support for volunteering. TimeBank’s chief executive has said:

“This decision will hugely undermine the Government’s vision for a Big Society…For the past decade we have made an important contribution to mobilising an army of 300,000 volunteers and to improving the quality of volunteering across the board. Without this vital core funding we will not be able to continue to deliver the level of service that we have based our reputation on and will have to considerably reduce our activities and staff as a result.”

[Emma Reynolds (Wolverhampton North East) (Lab)]

I have an example in my own constituency. Kids in Communication is a youth media group that operates KicFM, and it has recruited 5,000 volunteers in the past decade. I urge the Minister to look at that group with some urgency. It will run out of funding at the end of next week. He has previously mentioned that 50% match funding might be available. If we are going to create a big society and sustain it, we need such organisations to recruit volunteers. By rolling back the funding, the Government are decreasing the number of volunteers in society, which goes against the whole spirit of the big society.

[Barbara Keeley]

Indeed, and I thank my hon. Friend for her intervention. I personally believe that some of the decisions to cut grant funding to organisations that support volunteering, such as TimeBank and the one that my hon. Friend has just mentioned, are difficult to understand, because Ministers have talked about encouraging social action and the need to support the community and voluntary sector. In fact, we recently had a debate on the big society in the House. The Minister said:

“I really believe that we have barely scratched the surface of what can be achieved in this country if we strike a more effective and balanced partnership between Government, business and civil society”.—[Official Report, 28 February 2011; Vol. 524, c. 131.]

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[Chris White]

I thank my hon. Friend for her intervention. It is clear that her council is a very good example of best practice.

[Emma Reynolds]

Has not the chair of the Local Government Association, who is a Conservative, said that the cuts imposed by central Government on local government go way beyond efficiency savings and will therefore necessarily put local government in the impossible position of having to cut some services?

[Chris White]

I refer the hon. Lady to the fact that these are difficult economic times, which were not brought about by the coalition, and something needs to be done. At the moment, I do not see the Opposition doing anything at all to begin to address some of these issues.

Voluntary services in a range of areas, from welfare to social care and from youth services to health care, enable the public sector to reduce “failure demand”, which is one of the biggest costs to the taxpayer. Because we fail to do the right thing the first time, we end up having to make more expensive interventions further down the line. That is not the right approach to providing services. Local authorities should work with the voluntary sector to use its expertise and understanding of the needs of service users to build better platforms. Although voluntary organisations can be a short-term expense, they can also generate significant savings in the long term. If anything, we should seek to shift funding towards voluntary organisations, rather than taking funding away from them.

An excellent report by the Association of Chief Executives of Voluntary Organisations called “Replacing the State?” gave four strong reasons why voluntary organisations are better placed to provide services than traditional in-house bodies. They are local and focus on the needs of their users, rather than on what is best for providers. They have higher levels of co-ordination, as they have a community-wide focus. They command a high level of public trust. They are incredibly innovative and able radically to change the delivery of services for the better.

There is an even plainer economic argument. Voluntary organisations are already saving the public sector more than £20 billion in staffing costs, given the fact that 17.1 million people volunteered in 2010. If we cut the funding on offer to the sector, we will reduce the infrastructure that channels those volunteers, either leaving people without services or leaving the public sector having to hire paid staff. I believe that if we integrate voluntary organisations further into public service delivery, we will not only see long-term costs go down, but we will be able to secure the future of many important groups throughout the country—something that can benefit all our local communities.

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[Yvonne Fovargue]

I thank the hon. Gentleman for his intervention. I completely agree.

Also at risk was the funding for face-to-face debt advice, which has been given a year’s reprieve, although there are still arguments about the management costs centrally. It is proposed that social welfare law should go out of the scope of legal aid funding at the very time when we are introducing a new welfare system. Many bureaux have funding from primary care trusts, which are also going. Advice agencies could disappear—97% of law centre funding is under threat. I make this plea to the Minister: will he please look across the board and bring all the Departments together when they consider the funding for advice services? Otherwise, the cuts to each Department will affect that sector particularly badly.

I also want to consider my local services in Makerfield borough. Makerfield and Wigan benefit from 24,900 volunteer hours a week, and 68,835 people benefit from the services provided. Those volunteers need the support of paid staff and, often, the support of the infrastructure organisations. We would not expect any employee to work without the support of management and without a decent regime of health and safety, supervision and career development, so why do we expect volunteers to do that? That is what the cuts mean—the volunteers will not be there without the support of those paid staff.

Central Government are looking at cutting the infrastructure organisations. One particular concern for my local council for voluntary service is the vinvolved funding. Over three years, the vinvolved project in Wigan has dealt with 1,071 youths, most of whom were classified as NEET—not in education, employment or training. There has been a significant reduction in repeat antisocial behaviour orders for that group and an increase in the number of people going into work. Cutting that programme will leave those youths with nowhere to go. They will be back on street corners in the neighbourhoods that have previously complained about them. It is so important to young people that they be brought into volunteering. My local branch of Age Concern has pointed out to me the value of bringing those young people into its organisation and the cross-generational work that that has engendered.

[Emma Reynolds]

Is it not sheer madness for the Government to cut vinspired when youth unemployment is at record levels?

[Yvonne Fovargue]

Absolutely. My local CVS managed the future jobs fund in my borough, and youth unemployment among 18 to 24-year-olds was reduced by 56% in 2010 as a result. It halved the number of jobseekers from 900 to 450 in that period. To cut that at this time, when young people are coming out of education and training without a job to look forward to, is sheer folly.

I do not believe that the big society is new—in my borough or in any other borough—but I do believe that, due to the cuts, it is becoming the shrinking society, which is dangerous.