Gareth Thomas, shadow minister for civil society, has written to the Big Lottery Fund, Nesta and the Social Investment Business asking them to explain their reasons for giving grants to Big Society Network and Society Network Foundation.

The letters were all sent last Friday, one working day before minister Nick Hurd tabled answers to various Parliamentary questions from Thomas regarding the government’s funding of Big Society Network (BSN) and Society Network Foundation (SNF).  These answers revealed that the Cabinet Office has paid £711,900 to the two organisations since 2010.

Thomas was prompted to write the letters following civilsociety.co.uk’s investigation into grants awarded to BSN and SNF from public and National Lottery funds over the last three years.

BIG 'solicited bid' for £1m

His letter to BIG chief executive Peter Wanless asks for more information on the level and purpose of funding that BIG has provided to BSN and SNF and what due diligence was conducted before each award.

Thomas states that the Big Lottery Fund gave Big Society Network £830,000 in March 2011 for the Your Square Mile initiative, and asks to see the evaluation of this project and confirmation as to whether it met its objectives.

He also highlights the £1m grant awarded by BIG to the Network in a “solicited bid” last month and asks which other organisations BIG has recently solicited bids from.

The letter concludes: “I would also welcome knowing which, if any, board members of the Big Lottery Fund were involved in the decision to encourage a solicited bid from the Network this year, to approve their bid and likewise their March 2011 bid.”

Letter to Nesta on due diligence

Thomas’s letter to Nesta relates to the grants totalling £480,000 paid to BSN without a competitive pitch in December 2010 and requests further information on the discussions Nesta had with BSN or SNF on the reasons behind the grant. He also asks about the due diligence and evaluation for this funding.

Letter to Social Investment Business on Social Action Fund grant

And his letter to Jonathan Jenkins, chief executive of Social Investment Business, queries the process for awarding the £199,900 Social Action Fund grant to SNF last year. 

He asks whether it was awarded after a competitive process, which other organisations applied for funding but were rejected, and what evaluation arrangements are in place for the funded project.

The Cabinet Office has already confirmed that the project funded by the £199,900 grant never launched and is now on hold.

 

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