Public Sector Funding

Lilian Greenwood Excerpts

Wednesday 23rd March 2011 Westminster Hall

[Mr Mark Williams (Ceredigion) (LD)]

It is a pleasure to serve under your chairmanship this morning, Mr Amess. I pay tribute to the hon. Member for Worsley and Eccles South (Barbara Keeley) for initiating this debate. It is a privilege to follow the hon. Member for Islington North (Jeremy Corbyn) and the four-minute suggested time limit. He did not quite stick to it, but his maths were welcome.

The issue is an urban one, but also a rural one. I represent a large tract of rural west Wales, which has a proud history of volunteering, and I will start with the Welsh perspective. There are 30,000 groups throughout Wales, and 650,000 volunteers. It was estimated that in 2005, 54% of adults in Wales were volunteering in one way or another. Many of those groups—some 10,000—received no public funding whatever and relied on donations, as they had incomes of up to perhaps £10,000 a year. They ran small projects, with the emphasis on developing volunteers’ skills.

A huge number of other schemes in Wales relied on core funding in one manifestation or another, whether from our Assembly Government or through local authorities. I shall cite some examples in my constituency, and their valuable work. Many operated under the guise of a scheme initiated by our National Assembly which is called the Communities First project. It is very relevant in deprived urban communities, and in scattered rural communities. I am not sure whether it is the Liberal Democrats’ policy in the forthcoming Assembly elections to retain that project, but they should do so, because it has been a laudable success in my part of Wales.

The village of Ystrad Meurig wanted a mobile phone mast, because it did not have any reception, and it was supported in that by the Communities First project. A scheme to develop a youth club in one of my deprived wards in Aberystwyth was not short of volunteers, but it needed strategic leadership to organise and support them. I suspect that the idea that under the big society, green shoots of initiative will spring up throughout the country is far from the reality. That may happen in many cases—the hon. Member for Islington North spoke about protecting libraries, and we heard about the enthusiasm in Deddington in Oxfordshire. However, many of our communities require a lead and some measured core funding.

The hon. Member for Worsley and Eccles South referred to citizens advice bureaux. I have two excellent bureaux in Aberystwyth and Cardigan, and my wife is a trustee of one of them. Again, there is an abundance of volunteers, but what really worries citizens advice bureaux is the cut in the central training budgets, which affects volunteers’ ability to deliver a critical service to my constituents. We have heard about carers. I launched a project with Crossroads Care, an organisation in mid-Wales working to support carers with training, enabling them to take advantage of new flexible working structures and, when given the opportunity, return to the labour market. More than anything, carers require the stability of core funding, and I hope that the Minister will address that issue.

The Liberal Democrats held a much heralded conference in Sheffield a few weeks ago. The party was, in my view, discussing sensible proposals for the national health service, but tucked away in the agenda was a motion on volunteerism. That might seem peripheral, but it is a helpful pointer to show what can be done. I suggest that the Minister look at a couple of points raised in a paper that we debated, which was launched by my noble Friend Baroness Barker. The paper pointed out that we do not always make the most of opportunities available for funding the voluntary sector. In October last year, a report by ResPublica described the system of gift aid as an “antiquated” bureaucracy, and pointed out that digital processing of gift aid could be worth £750 million to charities. The Minister was present at that launch, and he indicated that he would think about the proposal. Is there any news on that?

The report also suggested that charities should make more use of social networking to raise funds. Many charities have done good work using social networking, but many others have not. We suggest a fund to provide a social networking school for charities: in other words—yes—public funds to encourage charities and give them the training and expertise that they need. We cannot hide from the fact that voluntary sector budgets will face cuts as a result of cuts to public spending, but local authorities have shown that the way in which such cuts are managed can have a major impact. I do not want to get into a debate about £16 billion of cuts by this party or £14 billion by that party, and the effect on the voluntary sector. Nevertheless, the hon. Member for Banbury (Tony Baldry) was right to make a point about transparency. People and communities need to see the situation and put pressure on local authorities to drive the agenda as they see fit. That is a wise initiative.

[Lilian Greenwood (Nottingham South) (Lab)]

On local authority funding, we must understand why communities with the greatest deprivation are suffering the highest cuts. Transparency is required on that issue.

[Mr Williams]

I do not deviate from that message at all. My constituency includes communities with high rates of deprivation, so that is a strong point. As has been stated, however, the role of this debate and of Parliament is to allow hon. Members to challenge the Minister, and the hon. Lady has done so effectively in her intervention.

I would like to hear more from the Minister on the big society bank. I note his written statement, and I agree with what the hon. Member for Islington North said about the limitations of the transition fund, particularly the scale of that fund, which is oversubscribed. It would be a tragedy if some of our voluntary organisations were allowed to wither because of its limitations.

The written statement published this week talks about “developing a proposal”, “engaging with the sector”, “further development work” and talking to the European Commission about state aid approval. Impatience with this matter has been well articulated by the voluntary sector, and I would appreciate it if the Minister indicated what time scale he is working to. In reality, the big society bank seems to be some way off. There are concerns about the ability to defend charities and the voluntary sector from local authorities. The transition fund is over-subscribed. The stakes are high and there is a mixed message about how the voluntary sector can respond.

There is a great deal of support for the principles behind the big society, if not the term itself. It was noticeable that our Sheffield motion did not contain one reference to the big society, although volunteerism was described as “principled.” There will be unanimity across the Chamber on the role that volunteers can—and should—play in our society, working co-operatively with local authorities to deliver meaningful services to people on the ground. There are still huge, immediate concerns about funding, and I hope that the Minister will allay some of those concerns in his response to the debate.

[Lilian Greenwood (Nottingham South) (Lab)]

I thank my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) for securing this debate. I will try to be brief. The Minister and I have already debated the future of the voluntary sector in Nottingham. As he knows, I believe that the Government are cutting public spending too far and too fast, and I have already mentioned my concern that the cuts are not being distributed fairly. The cuts will have a devastating impact on the city that I represent, and those who will bear the brunt of that impact are the very people least able to withstand it.

A number of hon. Members have expressed concerns about the limitations of the transition fund. Given the time scale involved, that fund will not protect the services that people rely on, the jobs of those working in the voluntary sector, or volunteering opportunities. In the short time available, I would like to focus on that last aspect.

The Government have stated that a key objective of the big society is to encourage and enable people to play a more active role in society. It is therefore incomprehensible and strange to make cuts that undermine the organisations that provide such opportunities. Nottingham has a volunteer centre that supports groups to recruit and retain volunteers, as well as helping volunteers to find suitable placements. In the past year, the centre matched about 2,500 people with volunteering opportunities in the city. In less than two weeks, however, all funding to support volunteering in Nottingham will end. The volunteer centre is particularly affected by the scrapping of the working neighbourhood fund and the national youth volunteering programme, which is called vinvolved. Eight members of staff will lose their jobs.

In Nottingham, over half of the volunteer centre’s service users are aged 25 or under; 16% of those supported by the v project last year were classed as NEET—not in education, employment or training. At a time of record youth unemployment, when one in five young people are unable to find work, it is counter-productive and short-sighted to cut that vital link to skills, training and confidence for the most disadvantaged groups. Figures released last week by the House of Commons Library show that over 3,500 young people aged 24 and under in Nottingham constituencies claim jobseeker’s allowance. In some areas, 19 young people are chasing every vacancy advertised by Jobcentre Plus.

The Government’s decisions do not only affect young people, and 40% of those who come to the volunteer centre are out of work. The loss of the service will reduce the opportunities available for people to retrain and improve their skills and employability, and it will also deprive organisations of volunteers who could help to deliver vital services. On CSV “Make a Difference Day”, I helped out at the local Barnardo’s shop. I talked to the volunteers, some of whom had become staff, and I heard how important volunteering was, particularly for people who were returning to work after a long period caring for a family, those getting into work, and those with learning difficulties or a disability. Taking away that opportunity removes that stepping stone into work.

Unfortunately, as hon. Members have mentioned, many local community and voluntary sector groups are unsure about the future of their own services. They will also lose the capacity to recruit and train volunteers. For most organisations, fewer paid staff means fewer volunteers, not more. I hope that the Minister appreciates that cutting resources to organisations that provide people with work and life experiences, skills training and support, is not sensible, practical or affordable. Finally, I invite the Minister to visit the volunteer centre in Nottingham so that he can see the outstanding work being done, hear what people have to say, and learn why they are so worried about the future of volunteering in the city, and about the future of the unemployed and vulnerable under this Government.