13 February 2009
By Vivienne Russell
A government funding package to help the third sector cope with rising demand for services as a result of the recession has met with a mixed reaction.
The Cabinet Office this week promised £42.5m to help charities, volunteers and social enterprises step up the advice and support they provide.
A third of the funds will be targeted at organisations providing employment advice, mental health and family breakdown services, while a £15.5m Community Resilience Fund will provide grants to small voluntary groups working in communities most at risk of deprivation. Up to £10m will be spent creating volunteering opportunities for unemployed people.
But unions said the money was nowhere near enough. Rachael Maskell, national officer for the community and non-profit sector at Unite, said: 'When you put this £42m in context, given that voluntary organisations employ more than 600,000 staff and look after the growing recession-driven needs of millions of people, it is a drop in the ocean.
'It is simply not enough… The figure we are looking at is £200m as a starting point, with regular reviews as the recession progresses.'
She added that voluntary sector finances were under pressure because of the losses they incurred when Icelandic banks collapsed, taking many organisations' reserves with them.
But voluntary organisations themselves struck a more welcoming note. The National Council for Voluntary Organisations said the help provided a 'start as we are just at the beginning of the recession', a view that was echoed by the Association of Chief Executives of Voluntary Organisations.
Acevo chief executive Stephen Bubb said: 'It's a start, but more is going to be needed as the recession unfolds, and in two or three years, £500m may end up being the total sum.
'Those smaller charities who support people who have lost their job will be coming back to the government and asking how can you support us more?'
Third sector minister Kevin Brennan said: 'The third sector is brilliant at knowing how best to provide real help for people who need it most. We need to make the most of the skills and expertise the sector has to offer.'
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