# Warning to Treasury on underfunding of public services has ‘gone unheard’ says NCVO CEO

- Link: https://fundraising.co.uk/2024/03/01/warning-to-treasury-on-underfunding-of-public-services-has-gone-unheard-says-ncvo-ceo/
- Published: 2024-03-01T11:49:41+00:00
- Author: Melanie May

**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](https://www.ncvo.org.uk/news-and-insights/news-index/open-letter-to-chancellor-on-charity-funding/)
to the Chancellor, published back in November, NCVO [called on the chancellor](https://fundraising.co.uk/2023/11/14/underfunding-of-public-services-has-forced-charities-to-crisis-point-ncvo/)
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](https://cfg.org.uk/userfiles/Civil%20Society%20Group_%20Spring%20Budget%202024.pdf)
> 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.”