DCMS inquiry highlights lack of Government support for sector during Covid-19 crisis
Melanie May | 7 May 2020 | News
The Government has not provided enough support for the charity sector during the Covid-19 crisis, which will result in ‘untold damage to individuals and communities’ if services are lost, according to the DCMS Committee inquiry into its impact on the sector.
DCMS published its report yesterday, 6 May, finding that while the Covid-19 crisis had left many charities fighting for survival with traditional methods of generating income drying up overnight, the support announced to date is insufficient, with a lack of transparency in how funds are being allocated meaning some charities will lose out.
It calls on the Government to act within the next month to increase its support and to ensure it is also available to charities facing hardship but not directly working on tackling Covid-19, saying that losing these charities ‘cannot be allowed to happen’.
The report praised charity workers for being ‘some of the real heroes of the response to the pandemic, with many working with great courage on the frontline of the crisis’, and also said that while the Government’s support has so far prioritised those charities on the frontline of tackling Covid-19, many others are doing work that, ‘while not necessarily responding to Covid-19, none the less enriches our society and will be needed once the crisis is over’. These too, it said, require support.
The DCMS inquiry included an evidence session to hear directly from charities and umbrella bodies about the challenges they were facing, and also received evidence from over 70 charities as well as beneficiaries.
It found:
- The level of financial assistance announced to date falls short of what is needed
- The government has been too slow to make funding available
- Business support measures fail to deliver on needs of charity and voluntary sector
- Lack of clarity about how the £750 million will be allocated means charities are unclear about their eligibility and how they should apply
- There has been a lack of transparency in how the funding made available is being distributed
On transparency, the report says:
“Some two weeks after HM Treasury outlined £750 million of support for charities, the Secretary of State was still unable to provide sufficient detail or clarity about the eligibility criteria for allocating that funding. It seems inevitable that this lack of transparency means deserving charities will miss out on much-needed support.”
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In terms of support needed, the report ‘backs the charity sector’s calls for a stabilisation fund to secure the long-term financial health and organisational diversity of the sector’, and states that the Government should establish further funding to assist charities and voluntary organisations to stay afloat throughout the Covid-19 crisis and that the Secretary of State should provide an update on progress made by Friday 5 June.
It also urges the Department for Digital, Culture, Media and Sport and the National Lottery Community Fund ‘to publish clear and comprehensive guidance about the criteria that will be used when allocating support, and how organisations can apply for it, without delay’.
Chair of the DCMS Committee Julian Knight MP said:
“The strong message that charities gave us was not that they have some sort of right to survive but that people have a right to the services they provide.
“We warned the Chancellor that charities told us they faced a £4bn gap in money coming in, with some smaller charities facing insolvency within weeks without immediate emergency support.
“The sum of money that’s been made available goes nowhere near replacing the income that many charities have lost. We’re urging the government to set up a stabilisation fund to assist organisations to stay afloat so that we avoid increasing hardship among those who depend on charities to help them during this crisis and beyond.”
Sector response
Chartered Institute of Fundraising Chief Executive Peter Lewis said:
“The DCMS report makes a strong case for Government to take further steps that we have been calling for to provide support for charities. Every day of this crisis the need for charity services increases, yet their financial position becomes more fragile.
“While we support the Committee’s focus on smaller charities, it is not just smaller charities that are struggling to maintain services. An enhanced government package should include essential support to medium & large charities struggling to maintain services. We also believe there should be a specific focus on supporting BAME organisations who support BAME communities, and who have been disproportionately impacted by the crisis.
“We need Government action to take these measures now to safeguard the future of those services that so many people and communities rely on. We will continue to make the case to Government on behalf of those charities that are never more needed.”
Sir John Low, Chief Executive of the Charities Aid Foundation, also commented on the report:
“This is an important report and we are pleased the committee has responded positively to our recommendations for ways to bolster the charities that do so much to support society, both now and as we move into the recovery phase.
“We proposed a whole package of measures which could be implemented to help charities in the short and longer term. We stand ready as always to work with Ministers to make this happen.
“MPs on the committee rightly welcome the Government’s support for charities, but we need to think about ways in which Government, donors and charities can work together to ensure the sector remains strong. We need our charities now more than ever, and Britain cannot afford to lose this vital part of our national life.”
.@CommonsDCMS has heard evidence from across the charity sector and the committee makes strong recommendations. We hope ministers and especially the Treasury are listening THREAD
— NPC (@NPCthinks) May 6, 2020
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.