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Government unveils £42.5m sector support package

Fundraising | 26 Feb 2009

The government has created a ‘recession fund’ for the voluntary sector totalling £42.5m – well short of the £500m demanded by acevo last year and the Sector needs itemised £100m requested by the NCVO last month.

The plan comprises a £16.5m ‘modernisation fund’ to help charities looking at mergers and collaborations, a £15.5m ‘community resilience fund’ and a £10m volunteer brokerage scheme.

The community resilience fund will help support smaller charities in the poorest regions that provide services such as debt and employment advice, mental health services and family breakdown counselling, and skills training. It is believed that those already delivering public services on behalf of local authorities will not qualify for this money.

The volunteer brokerage scheme will be administered by the Department for Work and Pensions, and aims to ensure that 40,000 jobless people can learn new skills and help their communities by volunteering.

The government will also invest £500,000 in the School for Social Entrepreneurs as part of the package.

£10m from existing budgets

Most of the money is extra cash taken from Treasury and Department of Health budgets, though the volunteering fund comes from existing DWP budgets for volunteering for the unemployed.

In the same announcement, the government also said it would be launching a national campaign to raise awareness of the government's commitment to pay all invoices within ten days, pointing out that this would improve cashflow for small organisations.

Cabinet Office minister Liam Byrne (pictured) described the proposal as a “lazer-targeted package of help”, and said it had been designed "together with sector leaders". But the amount compares dismally with the totals provided to the banking sector – already more than £500bn.

Byrne said: "Britain can beat this downturn. Just like we've beaten everything else this world has thrown at us in the decades gone by. But we'll win by pulling together. Not by facing the storm alone."

More may be needed

Acevo chief executive Stephen Bubb said the action plan was “a start”, but that more would undoubtedly be needed as the recession bites.

NCVO chief executive Stuart Etherington "cautiously welcomed" the plan and was pleased to see the two key things it had asked for - the modernisation fund and resilience funds - were contained within it.

But he added: "It is important that the government and the sector continue to monitor the situation and that we target additional resources as and when is necessary."

Further details of the plan will be disclosed at a briefing in Whitehall at noon today.

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Directory: Association of Chief Executives of Voluntary Organisations (ACEVO) | National Council of Voluntary Organisations (NCVO)
Who's Who: Sir Stuart Etherington | Sir Stephen Bubb