Community and Voluntary Sector Funding

Gerald Jones Excerpts

Tuesday 24th November 2015 Westminster Hall

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

May I say what a pleasure it is to serve under your chairmanship, Mrs Moon? I congratulate my hon. Friend the Member for Bradford West (Naz Shah) on securing such an important debate.

I spent many years working in the voluntary sector and as a volunteer. I wish to state that at the start, although it is not a declarable interest. I am deeply concerned about the situation facing the community and voluntary sector—a situation the Government have created. Volunteers and voluntary groups do a truly outstanding job in many of our communities, and they deserve all our support and that of the Government.

Demand for charitable services is increasing. Given the hardship the Government’s austerity agenda is creating, people in our communities will undoubtedly turn to charities and voluntary groups even more in the future for assistance.

In 2010, we heard much from the Prime Minister and the coalition Government about the big society and the role volunteers play in community life. Here we are just five years later, and the Government are pulling the rug out from under many of the charities, community groups and voluntary organisations that make such a valuable contribution to our country.

Recently, I spoke at the annual general meeting of the county voluntary council in my constituency. Voluntary Action Merthyr Tydfil does an outstanding job of supporting voluntary groups, as do many other county voluntary councils. The mood of many of the community groups I met was one of deep concern and worry. Historically, many voluntary organisations have received support—including, importantly, financial support—from local authorities and, in Wales, from the Welsh Government. Given the Tory Government’s austerity agenda, as well as the huge cuts to local authority budgets and, in Wales, to the Welsh Government budget, devolved and local government are finding it increasingly hard to deliver key services, putting at risk their ability to support voluntary and community groups.

Clearly, it is impractical for many charities and voluntary organisations to make a realistic charge for many of the services they provide, because that would, in many cases, put those services out of the reach of the people who need them most. Charities are well used to fundraising and to looking at all opportunities to bring in extra resources, but many will always need some support.

As my hon. Friend the Member for Bradford West said, the indication that the Treasury may look to cut the Big Lottery Fund share of national lottery funding from 40% to 25%—a cut of some £300 million—is hugely worrying, and such a cut would have a catastrophic effect on hundreds of voluntary organisations. The Big Lottery Fund is the biggest single funder of voluntary sector organisations, and given that charities are struggling financially, this is not the time for the Government to make matters worse.

Small grants of a few thousand pounds from the Big Lottery Fund are a lifeline to many community groups. Such funding is often the first step for fledgling community groups, such as senior citizens organisations and youth groups. I know of many instances where such grants have given volunteers and community groups a real boost, giving them an incentive to develop their work and to contemplate more ambitious projects, including attracting more volunteers.

[Tulip Siddiq]

Does my hon. Friend know that half of BLF awards go to organisations with a turnover of less than £25,000? The proposed move would be devastating for community spaces in my constituency, especially youth services, because of their small turnover.

[Gerald Jones]

I absolutely agree. As I said, that funding is an absolute lifeline for many small community groups that are on the road to developing more ambitious projects. It is unacceptable for the Government to contemplate such a cut to offset Government cuts in other areas. The Minister should confirm that the cut in lottery support will not be used as part of the Government’s deficit reduction plan.

In view of the Government’s apparent attack on the voluntary sector, I am bound to ask what they have against volunteers and voluntary groups. I urge them to acknowledge the role of the voluntary sector and the massive contribution the sector makes to society and to act accordingly. I therefore ask the Minister to advise us whether he will stand up for the sector and stand against this huge cut in the support to the Big Lottery Fund.