Many voluntary, community and social enterprise (VCSE) organisations are in need of capital funding to upgrade their old buildings, according to a government report.
An evaluation of the government’s £25.5m Energy Efficiency Scheme (EES), part of a £100m pledge to charities made by former chancellor Jeremy Hunt in his 2023 budget, concluded that many applicants’ buildings required structural works before energy efficiency measures could be introduced.
“This indicates a wider need for capital funding to address such structural challenges, to then enable VCSE organisations to participate in schemes such as the EES, to reduce both their costs and their carbon footprint,” the report reads.
The EES funded independent energy assessments (IEAs) for charities and awarded subsequent grants to organisations of up to £150,000 to install energy efficiency measures.
However, in most cases, the review found that the grant funding had not yet been fully distributed and 98.7% of fundees are still in the process of installing their capital measures.
A spokesperson for the Ethical Property Foundation told Civil Society they strongly supported the call for greater capital funding.
“Many charities operate from older buildings which often require significant structural work before energy efficiency measures can even be considered,” they said.
“Without this investment, many organisations remain unable to reduce their costs and carbon footprint.”
Jack Wakefield, policy manager at Social Investment Business, said: “Today's report highlights again the urgent need for investment to safeguard the VCSE sector which is burdened with draughty, inefficient buildings and high energy bills.
“While the EES brought much-needed capital funding at pace, our own research has found that a staggering 50% of community buildings fall below basic energy efficiency levels, and this rises to three in five buildings in areas of high deprivation.”
According to a report by Social Investment Business in January, community buildings in the UK require £429m of investment to meet minimum energy standards set to be introduced in 2030, with those missing the target at risk of sanctions.
Cost-of-living fund prevented redundancies
The government has also published an assessment of the main portion of Hunt’s 2023 pledge, the Community Organisations Cost of Living Fund.
It found that the some of the 1,500 recipients of the £70.9m fund, which provided grants of between £10,000 and £75,000, were able to avoid staffing reductions as a result of an improved financial situation and reduced pressures on their workforce.
Staff and volunteers for funding recipients reported being better able to meet the short-term pressures of demand over the 2023-24 winter period, as they benefited from increased capacity and support across teams, changes to delivery which streamlined their work, or accessing training.
However, the review concluded, “while VCSE representatives were very appreciative of the funding, there remains a strong demand for sustained funding that can cover core costs as organisations continue to struggle with the ongoing impacts of increased cost of living”.
It also found that while charities needed funding during the 2023-24 winter period, some experienced increased demand at other times such as during school holidays.
“This highlights that there could be other time periods, alongside the winter period, in which to offer similar funding opportunities,” the report reads.
