Health Trust Slashes Funding to Voluntary Sector

In a letter to voluntary sector colleagues the South Eastern Health and Social Care Trust has informed organisations that they face cuts of 3% each year over a three year period to reflect efficiency savings the Trust is required to make by Government.

In the letter dated 27 February 2008, organisations have been given one week to discuss plans for 'reshaping' the service by 7 March 2008. Many organisations will be forced to accept the terms given the deadline and the fact bridging finance has been offered for year 1 by the Trust. Under these plans voluntary sector organisation face de facto cuts of 9% in year three but are expected to deliver the same level of front line service.

The Trust state in the letter that "this exercise is not about cutting services but about reforming and modernising services and achieving efficiency gains". Voluntary organisations feel very agrieved because although a review into the health trusts identified that the trust was overfunded by 17% and that efficiency savings of this level were achievable, this review did not consider the efficiency and value for money of service provision by the third sector.

Many of these voluntary sector organisations are already contributing from their own resources to deliver these contracts as they are not funded according to the 'full cost recovery' model. Full cost recovery is a model which government has already signed up to and should ensure voluntary organisations receive funding equivalent to the total cost of delivering services. The new cuts means that organisations are being required to contribute even more to subsidising the delivery of public services from their own fundraising activity.

NICVA would like to hear from organisations facing similar cuts from this Health Trust and others. Contact neil.irwin@nicva.org