Skip to main content

Third Sector Recession Action Plan

Volume 502: debated on Wednesday 9 December 2009

1. What recent assessment she has made of the effectiveness of the third sector recession action plan. (304978)

The Government recognise the extraordinary role the sector plays in helping vulnerable people through the recession. That is why we have given unprecedented help and support to the sector, both through existing programmes and through the £42.5 million “Real help now” programme, the community action plans and the £16.7 million hardship fund. That money is getting out there right now: the programmes have already provided £32 million-worth of assistance to a total of 1,546 organisations. Evaluations of all our major recession programmes are already under way, and reports will be produced from the middle of next year.

I wonder whether the Minister is aware that charities helping those with mental health problems, such as Oakleaf Enterprise and the YMCA in my Guildford constituency, are facing a massive downturn in income. Instead of the “laser-targeted” package of help the Government’s press release described in February, we have the usual lumbering, bureaucratic, red-tape nightmare so commonly seen from this Government.

I am surprised at the hon. Lady’s comments, and if she wants to give me examples, I will be happy to look at them, because we have tried very hard to minimise the amount of red tape. Indeed, on the hardship fund in particular, we have been praised for the swiftness of our assessment of applications. Obviously, we want to ensure that charities and organisations who need help can get it quickly, and it is impressive that £32 million has already gone out to help them.

For a number of charities that I work with, there is a bit of a mixed picture. Some of the larger ones have seen their giving going up, but those that I call secondary charities— those that rely on the bigger charities to give them money—are often struggling the most. For example, I met representatives of SPEAK on Monday, and they are struggling to get money from others charities. What assistance can these programmes provide to help those charities that fund other charities, so that we can make sure that the money flows through the system and that secondary charities are not disenfranchised from these programmes?

We have sought to put in place a range of programmes to help charities and voluntary organisations in a variety of ways. In terms of those organisations to which my hon. Friend refers, may I direct him to the grassroots grants programme, as the often quite small donations given under that programme to bodies delivering services at the grass-roots level can be extremely valuable? Those grants range from £500 to £5,000 and are issued through the Community Development Foundation. I will also ensure that my hon. Friend has information on all the grants and packages of help that are available to help charities of different sizes.

The hardship fund, for charities with a turnover above £200,000, is a key part of the action plan, but the recent decision of the Office of the Third Sector to divert into it £750,000 from the campaigning research programme, which is aimed at smaller charities, has caused outcry across the sector. Does the Minister share my concern that the lack of consultation, or even warning, ahead of that decision has not only damaged the charities directly affected, but has shaken the confidence of the sector as a whole in the Government’s commitment to the compact and their support for smaller organisations?

Yes, I certainly understand the concerns about the transfer of the money. It is nothing to do with the size of the organisations; rather, it is to do with the purpose of the fund. It was a difficult decision to make, particularly because it is not compact-compliant, which I regret and apologise for. We should consider the purpose of the fund, however. When I was travelling around the country talking to different organisations, what came up time and again was that organisations delivering services on the ground at grass-roots level were being hit by the recession and needed help. We could have spent this £750,000 either on campaigning research or on helping those organisations. While it was a difficult choice, the basic decision was sound. However, I apologise to those who have been affected, and for this isolated breach of the compact.

I congratulate my hon. Friend on the effectiveness with which the hardship fund has been got out to organisations throughout the country, but does she think that the smallest organisations are sufficiently aware of, and therefore taking advantage of, the available help?

I do in some ways, as many organisations have had the help and have been able to make use of it. I think that more can be done, however, and I appeal to all Members to make organisations in their constituencies aware of the grants, support and loans that are available. We want that money to get out to third sector organisations because they are often the glue in communities, providing support on the ground to the people who most need it. We must do as much as we can to get that money out to them and to help and support them. May I direct my hon. Friend to the Government-funded National Council for Voluntary Organisations website, “Funding central”, which has all the information on grants and support? That is helpful to all organisations.

When the voluntary and charitable sector is facing horrendous pressure as a result of the Government’s recession, how helpful is it for Lord Mandelson to be railroading through the removal of the sector’s long-standing exemption on public performance rights? Does the Minister accept that adding at least £20 million in extra cost to voluntary and charitable organisations just now is the last thing that they need, or have the Government just stopped listening?

It is not a case of the Government not listening, and I should also correct the right hon. Gentleman because it is not the Government’s recession; as he may be aware, this has been an international recession, affecting countries across the world. I share concerns about the impact that charges from PPL and PRS could have on charitable and voluntary organisations; indeed, I met them to express those concerns on behalf of the sector. They are now working together to consider a plan to minimise that impact, and I urge all third sector organisations to contact PPL and PRS to ensure that it is minimised. The exemption was long-standing, and I believe that Britain is one of the last countries in Europe to lose it. I share the concern about the impact of this, and we must work with the entire third sector—the charities and the voluntary organisations—to do what we can to minimise it.

Part of the Government’s much-vaunted recession action plan was an £8 million volunteer brokerage scheme, which was intended to create 40,000 volunteering opportunities. Has not that much-criticised scheme turned out to be a flop, with only 2,500 opportunities actually being created? Given that leaders in the sector have criticised the scheme as

“a numbers game…not suited to the work of many organisations”,

has the Minister yet got the message that this sort of headline-catching initiative with rigid top-down targets is the problem, not the solution?

It is probably too early to make such an assessment as to success or failure. An increasing number of people are going into placements; this process was slow to start and we are seeing some improvement now. It is important to have targets, because they create an ambition to ensure that we get as many people into placements as possible. For example, in August, 930 people on jobseeker’s allowance took up placements on this scheme—that is important and it is success.