Voluntary and Charitable Sectors

Lord Kennedy of Southwark Excerpts

Thursday 26th June 2014 Lords Chamber

[Lord Kennedy of Southwark (Lab)]

My Lords, first, as other noble Lords have done, I thank the noble Baroness, Lady Scott of Needham Market, for putting down this Motion for debate today.

Secondly, as I intend to make reference to work taking place in Lewisham, I bring to the attention of the House that I am an elected councillor in Lewisham and that it grant funds a number of organisations in the borough. I also refer noble Lords to my declaration of interests in respect to the charitable and voluntary organisations I am a member of.

Also at the start of my contribution I pay tribute, as have other noble Lords, to work done all over the United Kingdom by the charitable and voluntary sectors. They provide an excellent example of how strong our civil society is and how valuable volunteering and charitable work is to life in the United Kingdom today, as my noble friend Lord Judd referred to.

It is no exaggeration to say that whole areas of policy development, practical delivery of solutions, work on community cohesion, the solving of problems on the ground and making things better could not happen without the charitable and voluntary sectors. It is true to say that they were doing that job long before the words “the big society” were ever mentioned.

We can trace the roots of the charitable and voluntary sector back to the Age of Enlightenment and the beginnings of charitable and philanthropic activity. Clubs, societies and mutual organisations began to flourish in England. In 1741 Captain Thomas Coram, appalled by the number of abandoned children living on the streets in London, set up the Foundling Hospital to look after these unwanted orphans in Lamb's Conduit Fields, Bloomsbury. This was the first such charity in the world and served as the precedent for incorporated associational charities everywhere.

I was pleased to see today that the Charity Commission released the independent research conducted on its behalf by Ipsos MORI, and that it showed that public confidence in charities remains at a high level and that only the police and doctors are trusted more. It was interesting to read that people wanted charities to explain exactly what they had achieved and 96% of respondents wanted charities to provide the public with information about how they spend their money, as the noble Baroness, Lady Barker, highlighted. It is certainly important for charities and the wider voluntary sector movement to be very transparent, clear how money is being spent, and to be able to demonstrate that they are providing good value for money.

The voluntary and charity sector movement is funded in a variety of different ways. It may be of interest to noble Lords to know that donations from the public to charitable causes was at 57% in 2012, which equates to 29.5 million adults donating on average £29 each. In recent years, donations have remained around that figure, with perhaps some divergence from it. In Lewisham, where I was recently elected to the council, the authority has managed to maintain a grants budget, which this year is £5.9 million, and work undertaken by the authority estimates that every £1 in grant funding brings in an additional £4 of external investment and earned income to the borough. In 2012-13 the authority commissioned £32 million-worth of services from the voluntary and charity sector. Other noble Lords, in particular the noble Baroness, Lady Scott of Needham Market, and my noble friends Lady Pitkeathley and Lord Judd, explained exactly the added value that the charity sector brings to its local community. The sector receives funding from a variety of sources, which include individual donations, grant aid, tax and other reliefs where eligible, legacies, targeted campaigns and donations for businesses, in addition to being commissioned to do work.

You cannot always quantify the value and work of the charity sector in money terms alone, and in some cases it may be impossible to do so. That was illustrated for me a couple of years ago, when I attended a reception in your Lordships’ House that was hosted by my noble friend Lady Smith of Basildon for the then WRVS—now the RVS—where we heard from some of its volunteers. One man told us that he had a great volunteering job. He took his elderly friend shopping twice a week, and they always stopped off in the pub for a pint on the way home. It is hard to quantify what he was doing in pure monetary terms, but he was helping his elderly friend to live independently in the community he had lived in for many years, to maintain his contact with the outside world, to go to his local pub and meet his friends. That volunteer was able to check that his elderly friend was looking after himself, and if necessary he could alert the relevant authorities if he thought there were issues that needed attention.

Many other organisations and people provide a similar function in keeping people connected with their local community. I have seen for myself excellent examples of this from faith groups such as the Overend Methodist Mission in Cradley and the wonderful Ackroyd Community Centre in Crofton Park, with its Elder People’s Support Project. That is a linchpin of the local community there and does just the sort of things that my noble friend Lady Pitkeathley highlighted in her contribution. The devastation caused by loneliness and isolation is difficult at any age but is particularly difficult when you are elderly, as my noble friend Lady Turner of Camden highlighted. Although I said that it is hard to quantify in monetary terms some of the work the charity sector does, you could come up with an estimate of the additional cost to the state if the voluntary and charity sector did not undertake those vital tasks that I have just outlined.

I have also seen at first hand the detailed policy work that is undertaken and how that informs government thinking. There are the grants some charities make to enable cutting-edge medical and other research to take place, and the work the sector can do to bring about changes to government policy by mounting effective campaigns and producing evidence-based research. Diabetes UK, along with other charities, did that very effectively with the campaign it ran to ensure that children with long-term conditions can expect to get an agreed minimum level of support at school. That enables children to remain at school and learn with their friends, and not find themselves excluded through no fault of their own. The noble Lord, Lord Storey, on the Lib Dem Benches, along with many other noble Lords, will recall the debates we had on that during the passage of the Education Act in the previous Session.

When charities and the wider voluntary sector run campaigns they can be very effective, and sometimes irritating to other interest groups, politicians and Governments. However, all noble Lords will be aware that charity campaigning has changed lives for the better. For example, a coalition of 200 UK charities and faith communities came together and formed the Enough Food for Everyone IF campaign, which secured commitments from the G8 leaders to provide funding for global initiatives to tackle child malnutrition and clamp down on tax avoidance.

However, I caution the Government to be very careful; just because they do not like something that an organisation is saying, it does not follow that it is running a political campaign. They should not get themselves into that position. If there are problems with recently passed laws, I hope that charities will write to the noble Lord, Lord Finkelstein, and take up his invitation. Local government in general has a very strong commitment to the voluntary and charity sector. In Lewisham we have found it important to maintain a strong independent sector that can act as a critical friend to challenge public sector policy and delivery. We recognise the key role the sector plays in building civic participation, providing a voice for seldom heard residents and providing community intelligence to the authority, as the right reverend Prelate the Bishop of Derby highlighted in his contribution. There is also a recognition of the great diversity of the sector and the need always to ensure that you are engaging with small and emerging groups as well as large and established ones. In addition, there is a recognition of the sector’s potential to take risks and innovate and of the fact that the voluntary and charitable sectors have been key delivery partners for a wide range of targeted initiatives.

As the right reverend Prelate the Bishop of Derby highlighted, in these times of austerity and cut-backs the voluntary and charitable sector has seen increased demands for its services and has had to deliver more with less, absorbing costs and meeting the challenges it has been presented with. The social sector tracker published by the Association of Chief Executives of Voluntary Organisations highlights the perfect storm that the sector faces. It also identified that 61% of charities argued that central government policy had a damaging impact on their work, as opposed to the 15% who cited a positive impact.

In responding to this debate, can the noble Lord tell the House what has happened to the big society? It was a big theme in the Conservative manifesto and is in the coalition’s programme for government. The Prime Minister told us in February 2011 that it was “his absolute passion”, but today it has vanished, swept under the carpet, never to be mentioned again—except by opposition spokespersons who ask, “What happened to that once-key initiative?”. Can the noble Lord confirm that the Government are willing to listen to suggestions about how we can further support the sector?

Yesterday, when I saw the reports of Wonga’s disgusting behaviour and how it treated some of its customers, I wondered whether there was a way that any fines imposed on it or other financial institutions that broke the law or regulations could be ring-fenced and invested in supporting the credit union movement or charity sector work on debt relief. I hope that the noble Lord will take that away and respond to it as well. In conclusion, I again pay tribute to the work of the voluntary and charity sectors in the UK and thank the noble Baroness, Lady Scott of Needham Market, for enabling this debate to take place today.

--- Later in debate ---

[Lord Wallace of Saltaire]

I am satisfied that it has all the powers that it needs. The Charity Commission is now very stretched. Its budget and therefore its staff were cut. Digitisation would help a great deal to make it easier for the Charity Commission to do its job, but the role of the Charity Commission is an issue that I know the new chairman and the new chief executive wish very much to take up with Members of both Houses of Parliament, and I encourage others to take that further.

On the question of regulation, I have been the trustee of two musical charities which dealt extensively with children, particularly primary school children. I am conscious that a certain degree of regulation is useful and necessary for charities. That is another argument that we will continue to have in this respect. On the international role of charities, the noble Earl, Lord Sandwich, touched on the problem of Greenpeace in India. It is not only a problem for India or for Greenpeace. Those of us who follow what happens in Russia, Sudan, Nigeria or Saudi Arabia know that the foreignness of some non-governmental organisations is something that those concerned with sovereignty have great concerns about. We do our utmost to support both those working for voluntary organisations and those working for civil society organisations in more authoritarian countries. I am not suggesting that India in any way is authoritarian but there are many other countries in which this becomes more difficult. That is one of the issues with which the Government are concerned and with which Foreign Office embassies are much concerned.

I am conscious that it would be impossible to cover everything in this debate. I merely want to thank the noble Baroness, Lady Scott, for introducing it, and all those who have contributed. I say yet again that this is the sort of debate that this Chamber does well. The future development of the voluntary sector is an extraordinarily important part of maintaining an open society and an open democracy. It is an issue to which this House should return regularly.

[Lord Kennedy of Southwark]

I made some remarks about the disgusting activities of Wonga and suggested that maybe the fines levied on it and other companies could be used for charitable activity in the credit union movement or the financial sector. Will he confirm that he will write to me on those matters?

[Lord Wallace of Saltaire]

I would be happy to write to the noble Lord. I should, of course, have said that the whole credit union movement, with which I know the noble Lord is much concerned, and the role of the churches in supporting the credit union movement are classic examples of how valuable our voluntary sector can be.