Warning to Treasury on underfunding of public services has ‘gone unheard’ says NCVO CEO
Melanie May | 1 March 2024 | News
The Treasury has failed to respond on the issue of underfunded public services in its reply to an open letter urging action, says NCVO CEO Sarah Vibert.
In the open letter to the Chancellor, published back in November, NCVO called on the chancellor to commit to properly funding public services delivered by charities in the autumn statement. It warned that underfunding had pushed charities to crisis point with 87% of charities subsidising delivery of public service contracts and grants with other charitable income. The letter was co-signed by over 1,400 representatives of the voluntary sector.
The NCVO has today published the response received from HM Treasury.
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The Treasury’s response, from its Chief Secretary Laura Trott MP, says the Government recognises the vital role of the VCSE sector and reiterates the support already being provided. This includes the £100 million package for charities and community organisations in England to support the impacts of the increase in cost of living announced last Spring Budget, the VCSE Energy Efficiency Scheme, and the Contract Readiness Fund. Closing the letter, Trott says she is “pleased to hear DCMS officials are continuously engaging with NCVO on this matter, as well as Minister Stuart Andrew who has met with NCVO”.
Commenting on the response, Sarah Vibert, CEO of NCVO, said:
“In November 2023 we delivered a letter to the Chancellor, co-signed by over 1,400 charities and voluntary organisations, calling for urgent action to address chronic underfunding of public services delivered by charities.
“We were clear – if the issue isn’t addressed, charities will close, vital services will be cut, and communities will be failed.
“This week we received a response from HM Treasury. In it they outlined the support charities have been offered to improve their energy efficiency and deliver support for people struggling with the cost of living, and reiterated how to Contract Readiness Fund will upskill charities to bid for contracts.
“We continue to be grateful for these measures. However, the Treasury has not responded to the crux of the issue – public service grants and contracts are not properly funded to meet the rising cost of delivering them. And the fall out of years of underfunding is creating a crisis in delivery of these services. People who need support more than ever, will slip through the gaps. This stark warning from the charity sector has gone unheard.
“The public services impacted by underfunding of grants and contracts typically aren’t crisis services, which is what the £76m cost of living fund is focused on. Instead, they are things like sexual health clinics, social care, and training and skills programmes – crucial services, delivered by charities and organisations with a deep and unrivalled understanding of the communities and issues. They empower people to play their full role in their communities, so ensuring they continue to help as many people as possible is crucial. They are also an investment because they often play a role in preventing people from needing more support or reaching crisis point.
“In November we said that we owed it to our members, and to charities across the country, to keep calling for change. And that’s what we’re doing. As part of our submission to the Treasury ahead of next week’s spring budget, we’re continuing our efforts to make sure the ask is heard, and action is taken. We’ll also be publishing a report on Monday which further sets out the scale of this crisis for charities and communities across the country.”
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.