Communities: Charities and Volunteers

John McNally Excerpts

Wednesday 13th February 2019 Commons Chamber

[Martin Docherty-Hughes]

I see that the chair of the all-party parliamentary group and the Minister agree. It is a fundamental point that we need to reinforce.

The sector in Scotland has a combined turnover of £5.8 billion. For the record, that is higher than the whisky industry. Some 78% of charities in Scotland are locally based, and four out of five Scots used a third sector organisation last year.

[John Mc Nally (Falkirk) (SNP)]

In my Falkirk constituency, I have the great privilege to support Strathcarron Hospice, which this month holds its Snowdrop appeal. Princess Anne is also a great supporter of the hospice. The volunteers who support this superb charity and many other organisations are appreciated, but I have looked at some of the salaries paid to the chief executives of national charities. Does my hon. Friend agree that that the salary of those at national charities should be capped?

[Martin Docherty-Hughes]

I think that might be above my pay grade. However, I do believe that pay must be commensurate with the working activity undertaken. It is up to the board members of charities to make sure that they hold their staff, especially their senior staff, accountable in terms of the wages that they are paid.

My hon. Friend also mentioned the hospice movement. I have two hospices in my own constituency: St Margaret of Scotland, which is well known across the west of Scotland; and CHAS, or Children’s Hospices Across Scotland, which assists children who are terminally ill from all over the UK. They are to be commended for the sterling work that they do.

Although not perhaps enjoying the same attention and understanding as other sectors with regard to Brexit, the sector is no more or less immune to the uncertainties generated as a consequence of leaving the European Union. Alongside concerns about protecting human rights, participation in European networks and pan-European programmes, and the future workforce, the issue of funding is paramount. Over the 2014 to 2020 funding period, Scotland has secured €941 million in European structural investment fund money, a significant proportion of which was to be channelled to third sector organisations in a diverse range of communities. This funding enables third sector organisations to access funds under the following interventions: employability pipelines, social inclusion and poverty reduction, and growing the social economy. I believe that the UK Government are developing the UK shared prosperity fund as a successor fund to replace the ESIF when the UK leaves the European Union. Yet despite repeated promises of a consultation, the launch has been delayed several times. Therefore, charities are yet to have their say on how this fund will evolve and operate, and they have had no clarity on what it will fund, how it will be designed, who can access it, how much it will be worth, or who will manage it. I hope that the Minister will clarify issues around the consultation and inform the House of what progress will be made in this area.

The Minister referred to the Dormant Assets Commission, which was set up in March 2016, building on the Dormant Bank and Building Society Accounts Act 2008. It had the expanded objective of looking at a much wider range of financial assets such as life insurance, pension products and so on. The commission published its final report and a series of recommendations in 2017. It identified some £2 billion-worth of dormant assets that could be freed up and distributed to good causes, for want of a better term. This is considered to be a conservative estimate, much as the value of dormant accounts was undervalued. More assets will also fall dormant in the years ahead, meaning that the fund can deliver in perpetuity.

In 2011, the dormant accounts money was made subject to the Barnett formula and devolved nations were able to set their own spending priorities, with the Big Lottery Fund taking responsibility for distributing money through the Young Start programme, which aims to create opportunities for children and young people. I am sure that Members would hope and expect that the new fund will follow a similar model. However, there has been little detail available about how funding will be allocated and distributed. Future consultation will give the sector an opportunity to ensure that this money can be secured for good causes and successfully targeted to produce the best outcomes. Again, I hope that the Minister can clarify the situation.

The essential elements of voluntary organisations in connecting communities are those who, either individually or collectively, volunteer to run charities and voluntary organisations. In Scotland, this is even an essential element of the nation itself. For instance, as I am sure that Members on both sides of the House from Scottish constituencies will know, the national Church, while it has ministers, is a charitable organisation facilitated by volunteers. Like many other faith-based organisations, it is a cornerstone of national life. Its role in the distinct nature of the Scottish nation is volunteer-led. Yet for volunteering to flourish, we must recognise that it requires investment.

In its report “Volunteering, Health and Wellbeing”, Volunteer Scotland—the national body for volunteering—highlighted the substantial evidence to support the contribution of volunteering to policies where health and wellbeing has an important role to play. That includes key policy areas such as health, education, employment, young people, older people, criminal justice and community engagement. The Minister mentioned isolation and loneliness. Last year, the Scottish Government brought forward their first ever draft strategy, “A Connected Scotland: Our strategy for tackling social isolation and loneliness and building stronger social connections”, with an additional £1 million of investment, and that is only for the first two years.

Through those policy areas, we understand that volunteering is essential to healthy behaviours and improved daily life—critically, for those who are isolated due to a range of factors, from income to age—and it has the real benefit of allowing people to cope with illness. It is well evidenced that volunteering has a profound positive impact on all our mental health, and the work of so many local groups across these islands, including Stepping Stones in my constituency, is a testament to the positive impact of volunteering on our mental health.

Yet we face challenging volunteer geography across western society, with a decreasing number of people volunteering. Even in rural communities, where the number has been traditionally high, we are seeing a marked decrease. There is no simple answer to growing volunteering. Our societies are evolving, and as I said, there may be people who do not even recognise that they volunteer.

The Minister mentioned the London Olympics. There were also the Glasgow Commonwealth games, and in a few years the games will be in Birmingham. While large sporting events see spikes in volunteering, there is yet to be substantial evidence that that investment brings a long-term increase in volunteering.

The hon. Member for Stirling (Stephen Kerr) mentioned the National Citizen Service, an issue on which he and I disagree. For me, my party and the Government of Scotland, the call to have a National Citizen Service only detracts from investment in existing infrastructure in Scotland. There are many national youth organisations; the exact same type of organisation exists and is already funded. Rather than asking for a London-based system, we should look to the systems that already exist in Scotland, as a lot of work is being done by YouthLink Scotland and other organisations.

For me, big society is like Big Brother. It is a threat to individual and collective community action, undermining volunteering in its most basic and fundamental form. It is a society where we have, in the words of Robert Dahl,

“an effectively enforced right to form and join autonomous associations”,

rather than ones brought about by Government.