Today on Employability Day, when we are celebrating the successes of the sector in keeping long-term unemployment down, making strides to close the disability employment gap, and providing vital support to millions of people to overcome their barriers to work, our CEO, Ally Calder, reflects on a recent workshop held by the Scottish Parliament’s Social Justice and Social Security Committee – Third Sector Funding Principles.
An appalled MSP on my table asked the question, ‘why do the third sector not strike?’ after a round of laughter from those present, he asked again ‘junior doctors and teachers strike, seriously, why don’t the third sector strike for better terms and conditions’.
The discussion that led to the question highlighted that funding to charities assumes that we have deep pockets and can cover local and national government cuts on spending and poor funding principles.
The list of poor funding principles shared was lengthy, but key points were:
- Increased delays in national government funding decisions, leading to delays in local government decisions, with the third sector filling the financial gaps between contracts to ensure vital services are available.
- Local government paying agreed contracts 6 months in arrears of spend, when charity guidance is to hold 3 months of reserves.
- Being asked to deliver services on the promise of getting a contract later in the year when lengthy procurement is complete.
- One-year contracts, with no way to plan services longer term.
- Increased compliance to evidence spending and outcomes, without funding to pay for administration costs.
Added to this are reductions in funding and pressures on trust, individual and corporate fundraising, which has led to the third sector increasingly trying to do the same with less, with many organisations at breaking point.
On understanding the pressures the third sector is under, you might also wonder why we don’t stand up for our sector, and our staff and strike, as colleagues in the public sector have been doing. The answer that came through loud and clear from everyone at the workshop was, we know that the third sector is the safety net in society for the most vulnerable, and we would never put people at risk by striking.
Instead, we make our case to the Scottish Parliament and campaign for sustained, long-term funding solutions, paid timeously. We hope that the consultation findings are reviewed and acted on for the benefit of providers and most importantly, the people we support.