Community and Voluntary Sector Funding

Robert Halfon Excerpts

Tuesday 24th November 2015 Westminster Hall

[The Minister without Portfolio (Robert Halfon)]

It is an honour to serve under your chairmanship, Mrs Moon. I congratulate the hon. Member for Bradford West (Naz Shah) on securing the debate and on her election; there are not many Labour MPs I raise a glass for when they get elected. I know that in her maiden speech she spoke about social action in terms of food banks. Although, of course, I disagree with her on some points, she spoke thoughtfully and with passion, and I will try to answer some of her points.

The hon. Member for Clwyd South (Susan Elan Jones) said she was worried about mentioning that she chairs the all-party group on civil society and volunteering; I think that is a badge of pride. She made some thoughtful remarks about gift aid, which she will know was worth £1.2 billion to charities last year. The Government have launched Charities Online, an online system that makes it simpler and faster to claim gift aid. The innovation in giving fund has provided around £10 million to develop ideas that have the potential to create a step change in the giving of time and money, including, as she suggested, crowdfunding platforms and other innovative forms of technology.

The hon. Member for Bradford West spoke about procurement, an issue that has come up not only recently but over many years. I have spoken on the record in the past, when I was on the Back Benches, about the Tesco charities—in other words, the bigger charities that get the bigger slices of the pie. She will know that the private Member’s Bill of my hon. Friend the Member for Warwick and Leamington (Chris White), the Public Services (Social Value) Act 2012, supported by the Government and passed by Parliament, requires public service commissioners to consider social value whenever considering procurements in their area. The Cabinet Office has led the successful Commissioning Academy to instil best practice across the public sector, as well as delivering special commercial masterclasses to charities to support them to bid. There is also a local sustainability fund of £20 million that supports grassroots charities, to ensure they have a secure future.

The hon. Member for Bradford West is right that charities currently get business rates relief of up to 80% if a property is used for charitable purposes. Many local councils top up certain reliefs, offering 100% relief in order to give businesses and charities extra help, and business rates relief helps charities up and down the country. With the Government’s tax changes, employers, including charities, will have their national insurance bills cut by £1,000 from April next year.

The Big Lottery Fund has come up on a number of occasions. I have to confess that I have not seen inside the Chancellor’s lunchbox, but I urge hon. Members to wait 24 hours and hold their horses, so that we can see what happens. I cannot comment on funding, particularly because of the spending review, but I want to talk about three things—funding we have provided for civil society, what we have done to improve civil society, and our ongoing work.

It was a pleasure to hear from my hon. Friend the Member for Chippenham (Michelle Donelan). I cannot get away from her Facebook page, because it has one post after another of her community activism, looking after her local community and doing exactly the kinds of thing we have talked about today. I know that her work is acknowledged by her constituents. My hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter) talked about volunteering, which I hope to come on to later.

I am a passionate believer in big society and always have been. I have always believed that social capital is as important as economic capital, that social entrepreneurs are as important as economic entrepreneurs and that people power is as important as state power. That is what big society means to me, and that is what big society means to the Government.

[Jess Phillips (Birmingham, Yardley) (Lab)]

Does the Minister recognise that people capital and social capital, which he rightly points to, will not provide a rape crisis counselling service for children, no matter how much he wishes they might? The state once provided that. The Big Lottery Fund then went on to provide it, and the Chancellor is potentially about to take it away.

[Robert Halfon]

As I said, I suggest the hon. Lady holds her horses and waits to see what happens in 24 hours. I will talk about what we have already done to fund civil society and big society in a moment.

The Government recognise that individuals are looking beyond the state and want to help friends, family, their community and their local services. People are becoming far more community-minded and are asking not what their community can do for them, but what they can do for their community. Millions give their time, energy and expertise to help others, and they put service above self. I am wearing a Heart 4 Harlow badge, which is from a social action project created by faith communities in my constituency. They work together to do social action and to help our town. This social action—this people power—is the foundation of the bigger and stronger society that we all desire.

It is no surprise that the Charities Aid Foundation found that the UK is the most generous nation in Europe. That means that the public are giving twice, which it is important to note, both in their taxes and personal donations. With all the talk of funding, it is also worth noting that taxpayers are giving about £13 billion a year to charities up and down our country—remember, that is not Government money, but taxpayers’ money.

We should also note that five years ago, our country was broken. We had experienced the deepest recession in living memory and the deficit between public spending and the Government’s revenue was unsustainable. Unemployment had risen to record levels and household debt was higher than many of us would agree is sensible. The societal issues that stemmed from those circumstances meant that public services and civil society both faced an incredible challenge—one of increasing demand, but without the ability easily to invest increased resources to meet it.

[Anna Turley]

If the Minister is setting out the challenges and saying that there is a consequence for public services and the big society, we are now five years on and the crisis is even greater for the community and voluntary sector. Is that not a consequence of the last five years of economic policy as well?

[Robert Halfon]

As I said, the taxpayer is spending £13 billion a year, which is a sizeable chunk of money, on charities.

I turn to the Government’s achievement over the last years in pursuit of this vision. There is, for example, the community organisers programme, which is training more than 6,500 organisers to work in hundreds of cities, towns and villages. Community organisers are not about replacing existing jobs or services; they are about people power, giving social entrepreneurs, charity workers and volunteers the real tools to help themselves. One example is the work of community organiser, Tania Swanson, in Clacton in Essex. She works with the Rural Community Council of Essex to assist with projects on affordable housing, energy efficiency and community farming, as well as on many other community initiatives.

The big society has meant the establishment of the Centre for Social Action, too, which has seen an investment of around £70 million of real money from the Cabinet Office, commissioners, local authorities, philanthropists and other partners into 215 social action projects in England, working alongside and helping public services. Just as the Government have liberated business entrepreneurs from red tape and regulation, so the big society has worked to free charities, voluntary groups and social entrepreneurs from red tape. There has been £200 million of investment to help charities transform themselves to be more effective. We have seen the creation of the world’s first social investment bank, Big Society Capital. A prime example of that, and one I know about, is the £825,000 invested into the Essex social impact bond to help vulnerable young people avoid care or custody and stay at home with their families.

To me, perhaps one of the most exciting and forward-looking of the big society projects is the National Citizen Service, which was highlighted by my hon. Friend the Member for Chippenham. It gives young people a real chance in life and a real experience of community ethos, social action and important skills that they will have for life. Over 5 million hours of volunteering has been given by NCS participants to their local communities; that is a whole generation for whom social action has become the norm, not the exception. Ensuring that future generations are more socially minded is key to the work of the National Citizen Service. A lot of work has been done to help young people. In my constituency of Harlow, we have the Young Concern Trust, which does an enormous amount to support disadvantaged young people.

I said earlier that the big society was about social capital, social entrepreneurship and people power, and that that is the continued mission of the Government over the next five years.

[Dr Poulter]

Will the Minister give way?

[Robert Halfon]

I will not—I am very sorry, but I have to get on.

So what does this mean in practice? It means a continued investment in our charities, continued support for social action, and continued backing for giving and philanthropy. My hon. Friend the Member for Central Suffolk and North Ipswich talked about volunteering. We believe that the planned entitlement will help build stronger communities and a stronger economy by creating a more motivated and productive workforce. It has been shown that people who volunteer also have significantly higher levels of life satisfaction. Many businesses across the country already run great volunteering programmes that empower their staff and help build stronger communities. During this Parliament, the Government plan to make that an entitlement for those working in the public sector and large companies.

We are also working to make social investment an integral part of the investment landscape. Earlier this year, Access—the new £100 million social investment foundation—was launched. By helping organisations to become investment-ready, Access will be critical to our continued efforts to ensure social investment is working for more organisations and is accessible by more people. We, as a Government, can use social investment to deliver a more just society.

Alongside social investment, Government are rapidly extending the scope and reach of social impact bonds to tackle youth unemployment, mental health, homelessness and children in care. Through funding for initiatives such as the Centre for Social Impact Bonds and the Social Outcomes Fund, we can help to build a strong, resilient sector.

So what do we plan for this Parliament? What do we want to see over the next five years? We want to see increased levels of social action and volunteering, creating stronger, more resilient and empowered communities, and increased resources going into the civil society sector through more giving and philanthropy, as well as more social investment enabling investors who want to use their money to have a profound social impact. We want more businesses actively building social capital as well as economic capital—helping to build a more compassionate economy—and, of course, better and more responsive public services, ensuring that they work hand in hand with the expertise, humanity, and dignity of the big society of community and volunteers.

[Dr Poulter]

On volunteering, I wonder whether the Minister may be able to look at—and perhaps do some work with the Law Society on—pro bono work from solicitors. A lot of big law firms do not give their lawyers time off to perform pro bono work. The only way we can change that is not through dealing with firms, but by putting a requirement on lawyers through the Law Society which then, in turn, would put pressure on firms to act. Will he look at working with the Law Society to encourage more pro bono work?

[Robert Halfon]

My hon. Friend raises a very interesting point. I am lucky in my constituency, because I have a pro bono lawyer who very kindly helps us with difficult legal cases with my constituents. I am sure that the Minister for Civil Society will look at that issue.

I firmly believe that we are on the brink of something special in our country: where we continue to create millions of jobs and apprenticeships, where public services offer more choice and are focused on the security that everybody needs, but most importantly, where the big society flourishes like never before, so that even in difficult economic circumstances, with the strong backing of this Government, millions of social entrepreneurs, community-minded individuals, charity workers and others give all they can to make our country a better place to live.