Community and Voluntary Sector Funding

Tulip Siddiq Excerpts

Tuesday 24th November 2015 Westminster Hall

[Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Moon, and to contribute to the debate. I pay tribute to the hon. Member for Bradford West (Naz Shah)—that was something I would never have said in the previous Parliament, but I can happily say it now—for the thoughtful and welcome debate she has brought to Westminster Hall. This is something that we all care about, because in all of our constituencies we recognise voluntary organisations and charities, some of which are linked to national organisations such as Age UK, and there are also smaller groups that have recognised local need. For example, in my constituency the Debenham Project has come together to support people with dementia and their families. That project is now being used as a pioneer throughout the east of England to show just how communities that have recognised a need can come together and make a real difference for people with dementia.

Before I talk more broadly about the role of businesses in supporting volunteering and the charitable sector, which I do not think has happened to the extent we would like— and I will talk about the legal sector in particular—I want to pick up on some of the points raised in the debate that affect all of our constituencies. Much of the volunteering in Suffolk, and, I am sure, throughout the rest of the country, is freely given. I am sure that no one wants in any way to polarise the debate by saying that the voluntary sector should be a purely funded sector.

I am sure we all recognise the vital contribution in carers’ organisations, village hall committees, scout groups and other groups in the community when time is freely given to support others in need, be they young people needing support with educational causes or the most vulnerable. None of us would want to undermine that ethos in any way. It is important that everyone considers the opportunities in their community to support vital projects and, in particular, to look after the most vulnerable people.

One such example in my constituency is the hour community project in Framlingham for which everyone in the community has given up one hour of their time—whether one hour a week, one hour a month or even less than that—to take an older person who may be living in social isolation shopping, for example, or to provide support to special educational needs children or teachers in a school or to provide time to other people in the community with needs. We should value and cherish that.

That does not always require funding. Of course there is an argument for pump-priming some such projects, as outlined earlier, and providing seedcorn whether through local authorities, central Government or lottery funding to kick-start them, but we should never undermine the importance of encouraging people to volunteer in their communities and give up their time to help those in need and good community causes.

These times of economic austerity have, of course, had a clear impact on charities and voluntary organisations. There has been a reduction in central funding—of course that is the case—and there has been a 10% drop in charitable donations, according to figures from three or four years ago. However, voluntary organisations have opportunities they did not have before to find additional funding, and local commissioners now have greater opportunities to commission services from voluntary and charitable organisations, where appropriate. Has that happened, however, to the extent envisaged in the legislation? Perhaps it has not.

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

I agree with the hon. Gentleman that local charities do very good work. In my constituency, however, small charities have consistently reported problems with public service commissioning, including that contracts are becoming so large that only the largest organisations can bid for them. Does the hon. Gentleman agree that the Government must take steps to level the playing field so that the charities he is speaking so passionately about, and that I believe so passionately in, can compete?

[Dr Poulter]

That is an issue, particularly where local authorities look at having block contracts for aspects of social care. That is a real problem, particularly for more—I do not necessarily think this is the correct description—bespoke charities, which provide specialist services. For example, a charity looking after younger people who have had a brain injury may not fall easily within a block contract. The Department for Communities and Local Government could certainly look at providing guidance and support to those who put these contracts out, to make sure that block contracts do not inadvertently get in the way of providing the right services to people with quite specialised needs. That can be a very real problem, which can result from block contracts, because they are inherently larger. The result can be that people with more specialised needs can fall through the gaps. Some of the charities and voluntary organisations providing very good specialist care do not get a look-in on block contracts, because they are not geared up to provide the service required, although they do provide an important service for certain groups in the community. The DCLG may well want to look into what guidance it can offer. Indeed, the Local Government Association also has a role in supporting local authorities to make the right decisions in this area.

The more general point I wanted to get on to relates to the role of big businesses in supporting volunteering. They have done a lot to support links with the armed forces. They have rightly been part of a big drive, with the Government, to support people in having time off to serve with the armed forces. There is also often a synergistic relationship with the voluntary sector, and local businesses can benefit and get good will from the community by allowing staff to have time off to contribute to charitable and other good causes. However, one area that needs attention is the legal sector—

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[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.

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[Jo Stevens (Cardiff Central) (Lab)]

It is a pleasure to serve under your chairmanship for the first time, Mrs Moon. I congratulate my hon. Friend the Member for Bradford West (Naz Shah) on securing the debate. We have heard excellent and wide-ranging contributions this afternoon, and I very much welcome the debate. It is important that we discuss the issue, since funding for the community and voluntary sector is at a critical juncture. With the Chancellor’s spending review coming tomorrow, I am sure that everyone involved in the sector will wait with bated breath to see what further cuts he has lined up for local government budgets. The continuous budgetary pressure on local government makes it even harder for the voluntary sector to fund its important work. I have seen in my own constituency the tremendous impact that community organisations have and the growing funding challenge that they face because of cuts to Welsh Government budgets that have to be passed on to local authorities.

I spent some time a couple of weeks ago at Grassroots Cardiff, a small community organisation working with the most vulnerable young people in Cardiff Central. It provides advice, support, creative opportunities and training that help young people between the ages of 16 and 25. In a supportive environment, it promotes self-confidence and development to help vulnerable young people avoid homelessness and drug abuse. It also runs a fantastic weekly Asperger’s support group for young people—the only one that is available in Cardiff and the wider region. I have seen the remarkable work that the organisation does and the positive difference it has made to the lives of young people with Asperger’s.

Grassroots works very hard to function within its means, but owing to the cuts it is really struggling. It has lost local authority funding because of UK Government cuts and faces the prospect of being able to offer only a part-time service. That successful organisation, which has been serving the community in Cardiff Central for decades, is under threat. It is desperate for funds. If it asks for funds from local people, who are already stretched with low incomes and a lack of work opportunities, they will give what they can, but it is a struggle.

In the previous Parliament, under the coalition Government, there were tax cuts for the wealthiest in the country—a giveaway to the people who needed it the least. At the same time cuts were made to the local authority funding that supports and delivers voluntary and community sector provision in villages, towns and cities across the UK. The expectation was then, as it will be once again in tomorrow’s spending review, that ordinary working people will have to foot the bill.

Part of the Conservative party manifesto in 2010 and again 2015 was the creation of the big society. One pillar of that was opening up public services and enabling voluntary organisations, charities and social enterprises to compete to offer public services combined with community empowerment, giving local councils and neighbourhoods more power to take decisions and shape their own area. However, under the coalition Government outsourcing took place on an unprecedented scale, and that is continuing under the current Government. The aim was to create a fairer playing field in which charities, social enterprises and private companies could bid for services, but as we have heard in many speeches today, the harsh reality has been private companies’ share growing, while charities and voluntary organisations have lost out completely.

The other pillar of the big society was community empowerment. The idea of that, as I understand it, was for people to be able to select the community projects they wanted to launch. However, because of the swingeing cuts in public sector funding, people are now forced to choose which projects they want to save, rather than the ones they want to launch. I have seen that happen in my constituency. Several voluntary sector organisations, including Carers UK’s Cardiff branch, ABCD Cymru, which works with the disabled black and minority ethnic community, and Cardiff’s Disability Action group, have had to fold altogether, leaving people without the support they desperately needed.

[Tulip Siddiq]

My hon. Friend has been talking about the notion of the big society. In the more affluent bits of my constituency there is a lot of social capital and invisible capital. The big society has worked there, but does my hon. Friend agree that in the more deprived areas of our constituencies it will not work? We cannot expect people who are choosing between putting the heating on and eating, and whose tax credits are being cut, to volunteer as well and keep up the big society, while the Government crush the roots of local democracy and cut councils’ funding.

[Jo Stevens]

I agree entirely. It always seems that the people who can least afford to give are the ones who are looked to for giving.

Several colleagues have mentioned the Big Lottery Fund. Since 2010 it has supported 74 projects in my constituency, including a deaf youth summer theatre school, the Somali Integration Society legal and welfare advice pilot project, and the Adamsdown day centre’s “Young At Heart” project. The day centre provides an essential service for elderly people who would otherwise have little or no daily social interaction. Its lottery fund money made the difference this year between being able to stay open or closing its doors for good. Seventy-four projects in Cardiff Central have received more than £3.3 million in funding from the Big Lottery Fund. Not only is that funding worth discussing here; it is something that all of us need to protect. I am sure that all the hon. Members present share that view, and I hope the Government will take note of what has been said today and take action urgently to protect a fantastic, hard-working, critically important sector.