Former shadow charities minister Greg Clark has labelled full cost recovery “outrageous” and insisted the voluntary sector must have a level playing field with the private sector on public service delivery.

Clark, speaking at the NCVO annual conference yesterday, said that when he first heard of full cost recovery at his inaugural briefing as charities minister he thought it “presumptuous” of government to single out the voluntary sector in the Compact and allow it the supposed “largesse” of full cost recovery.

“It was impertinence,” Clark told the audience. “If you told a private sector organisation 'if you do all you promised the best we will do is return your costs' – no one would sit in the room.

“Yet, it’s institutionalised in the Compact for the voluntary sector that you are lucky to have it. It’s outrageous.

“If you do well then you should share in the benefits. Then the voluntary sector can go on to reinvest and replicate on the success,” he said.

But, Clark also warned that the voluntary sector needed to be doubly careful in partnerships with the state: “The voluntary sector should never subsidise public sector contracts on the cheap.”

Civil society will “humanise” climate change

Clark, who is now shadow secretary for energy and climate change, also focused on global warming in his speech, saying that civil society should consider it an integral part of their work rather than an issue just for green groups.

“You have a key role in humanising the issue,” he said. “The climate change challenge for some seems too abstract to get to grips with. Civil society can show what it means to particular people in particular places,” he said.

He acknowledged campaigning and advocacy as a crucial role for charities dealing with climate change. “Your freedom to speak out must never be compromised.”

He added that the government currently relied on advertising campaigns to raise awareness of climate issues but that it should instead look to voluntary organisations for “a better way forward”.

Stephen Hale, director of the Green Alliance, followed Clark’s speech, mirroring the sentiment that climate change was an issue for all groups, not just environmental.

However, he questioned the Conservatives’ commitment to charities campaigning on the issue, noting that just weeks ago, Tory MP Oliver Letwin had made disparaging comments about campaigning charities at another NCVO conference.