Valuing the Voluntary Sector

3rd December 2024

Our asks of Scottish and UK Governments

Listening to our members and the voluntary sector in Glasgow, GCVS lays out our asks from the Scottish Budget. We’re also calling for immediate action from the Treasury as we begin to understand the impact of recently announced Employer National Insurance (NI) changes on charities and community organisations in the City.

“As a small charity with growing utility costs on top of increasing national insurance contributions, we will have no option but to reduce staff hours, therefore reducing our services unless we can source additional funding.”

A fight for survival

It’s quite clear from speaking to our members that community and voluntary organisations are facing the toughest period that many of us can remember.  And we’ve been through a lot as a sector over the last decade or more.

Concern about the future, and the impact of both the UK and Scottish budgets is tangible – here in Glasgow and in communities across Scotland. 

This shouldn’t be a surprise to either Government: Politicians who’ve met with charities over the last year can be in no doubt about the frustration and anger that many in our sector feel – not just for our organisations, but also for the people we work with every day.

In our recent survey into the impact of NI changes on Glasgow’s charities, one respondent summed up that frustration and worry:

“We are already facing a funding crisis and in a fight for survival.  This could be the straw that broke the camel’s back.”

We hear many warm words about the work we do. Yet, as the recent Social Justice Committee report emphasises, warm words mean little when you can’t offer loyal staff a pay increase or are having to reduce or stop critical services.

NI changes add to existing pressures

Despite Scottish Government commitments, we are not any closer to fair work or funding, and the disparity between public and third sectors in terms of pay, conditions, and security is now significant and is affecting service delivery.  

At a UK level, the recent National Insurance announcements call into question the power of the UK Government’s recent commitment to civil society.  The changes to Employer NICs will add to the ‘triple whammy’ impact of austerity, public sector cuts and price rises facing the voluntary sector in Glasgow.    

“Making tough choices” is perhaps the most overused political right now.  But tough choices are nothing new for our sector. Except this time, there is no more wiggle room; fundraising is the most difficult it has ever been, and managers and staff are exhausted and burned out.

The results of our survey into the impact of NI changes in Glasgow outline how charities and community groups might seek to mitigate linked additional costs:

• Most organisations told us they will need to dip into reserves and future recruitment activity is likely to be severely affected, alongside reductions in staff hours;
• Some of the smallest charities are predicting additional challenges from the changes to NI rates and thresholds, although others will benefit or be in a better position thanks to Employment Allowance changes.
• For those with more than 15 staff, over half are considering scaling back either staff or services.

The knock-on impact for voluntary organisations and already stretched public services is very clear to our sector:

“We feel the 3rd sector is generally forgotten about when decisions like these are made – statutory services would struggle without support from the 3rd sector and this is not acknowledged by those in Government. We hear lots of talk about wage rises and arguments about percentages – the 3rd sector can go years without a wage rise.  We battle all the time to keep services going and decisions like these make things so much harder in a really difficult climate.”

What we need from the Scottish and UK Governments

What happens in the Scottish Budget really matters for sector jobs, for wider wellbeing and community survival. 

Additional money is being made available to the Scottish Government. ‘No action’ is not an option, and we believe there is still scope for the government to do something powerful in the Budget to acknowledge and support the power of communities and voluntary organisations that make a profound difference in people’s lives.

To both Governments – we share your aspirations to rebuild a kinder, better, fairer country. Those aspirations are what makes our sector tick.

But we need to rebuild the relationship between Government and the voluntary sector, with respect and parity as the foundation stones. We remain committed to working with the Scottish and UK administrations to achieve Fair Funding and Fair Work for the sector – and the TSI Network’s Fair Funding charter provides practical examples of how that could be achieved.

We urge the Chancellor to come and meet voluntary organisations in Glasgow to hear first-hand about what the Budget means for people and communities across the City. And we ask the Scottish Government Finance Secretary to prioritise the voluntary sector within Wednesday’s Budget.

Our Asks

On National Insurance:

• To uplift all Government third sector grants to cover inflation and NI increases;
• To use whatever tools or resources Governments have at their disposal to ensure that other public bodies to do the same.

We also call on the UK Government to mitigate all NI linked costs for the Scottish Government – without this, the knock on impact for people, communities and the voluntary sector will be significant and hugely detrimental.

On Public Services:

• Governments and public bodies must recognise the massive role our sector plays in early intervention and prevention by protecting and prioritising funding for this work;
• There must be clear funding expectations of local government and other public bodies, and on how key partnership funds are used to benefit communities and people.

On Social Security and Poverty:

• The Scottish Government should use devolved powers to ensure that disability and carer benefits are sufficient, compassionate and enable people to work where they can, but offer a good quality of life for those who can’t;
• The UK Government should be adopting the same approach, recognising that people can contribute to the economy in different ways. 

On Social Care:

• Regardless of the future of the National Care Service, there are urgent changes and investments needed to improve care and support, and to ensure care workers (including Personal Assistants) are paid well for what they do;
• We need to move beyond a Carers’ Strategy toward effective, better funded carer support, to ensure carers can have a life outside of caring;
• We must invest in community wellbeing and in the organisations who focus on helping people to stay well and participating in work and in their communities.

Investing in the Future:

• Investments in infrastructure such as City and Regional deals must prioritise people, community and environmental benefits – with a focus on housing and community wellbeing; renewable energy and public transport.

What can you do?

Please share these asks with your own local politicians and ask them to come and meet you to hear about how the UK Budget and Scottish Budget affect you and the people you support. The big changes needed to rebuild Glasgow – and Scotland – cannot be done if the voluntary sector is not valued or funded sustainably. 

More Information

• Find out more about the NI changes and hear what the voluntary sector in Glasgow told us in our survey analysis:

• Read about the Employment Allowance which can help reduce your National Insurance liabilities.
• Learn how GCVS can support and work with your charity and community group, including the benefits of being a member here. Or by contacting us at sectordev@gcvs.org.uk