Charities face huge cutbacks

Jobs and services for vulnerable people will disappear

Large numbers of voluntary and community groups are suffering budget cuts as government departments and agencies scramble to find savings, the Northern Ireland Council for Voluntary Action said today.

These cuts come on top of the ending of European Union Peace II funding, the raiding of £80 million from Lottery ‘good causes’ funding to pay for the Olympics and the running down of other funding streams such as the Children’s Fund.

Under the Budget agreed by the Executive and Assembly earlier this year, statutory bodies have to find 3% ‘efficiency savings’. They are supposed to save money in areas such as administration and purchasing so that they can spend more on front-line services.

But many are taking the easy option and passing on cuts to voluntary and community organisations that are providing valuable services to the public.

A brief snapshot shows that 54 of NICVA’s member organisations are facing the combined loss of over 130 jobs, loss of support to over 160 volunteers, leading to a loss of services to over 6,500 people.

Here are some examples:

• The South Eastern Health and Social Care Trust has effectively told voluntary organisations delivering public services in its area that they will receive a 3% year on year reduction in funding. That is tough in year one but devastating in year three when the cumulative effect is over 9% in today’s terms or around 18% in real terms.
• Many voluntary organisations deliver public services to vulnerable people on the Government’s behalf through the Northern Ireland Housing Executive’s ‘Supporting People’ programme. NIHE is capping their contracts over the next three years to the current budget, another serious set of cuts.

“The real scandal is that rarely do voluntary organisations ever receive the full cost of providing the service that they are engaged in,” Mr McAleavey added.

“I have looked at organisations funded in both the above areas and quite often they are funded to the tune of 65%, 70% or 80%. They subsidise with their own fundraising services that Trusts and other government agencies should be funding and offer those procuring services excellent value for money. If they stop doing what they do, public services will be the loser.

“These so-called efficiencies could not have come at a worse time. Northern Ireland is losing millions of pounds diverted to the Olympics, European Peace money is being drastically reduced and other funding streams are coming to an end.”

For more information contact Paul Mc Gill at NICVA, tel: 028 9087 7777; mobile: 0772 1746 805.

Here are examples of the impact on a few areas and groups

• 2,800 childcare places in 57 projects right across Northern Ireland are at risk if the funding for School Age Childcare Projects, which runs out at the end of June, is not extended.
• Shankill Stress and Trauma group is facing closure or a severe scale back of its operations from August this year resulting in 125 people per month from North and West Belfast no longer receiving support.
• In the Galliagh area of Derry seven projects, including the ground-breaking Good Morning North West programme, which provides a daily service to 628 vulnerable older people, will close their doors with the loss of 24 jobs.
• A number of groups providing support to victims are laying off or have already laid off staff. The main effect will be felt at the end of June.
• In East Belfast the Community Drugs Awareness programme will lose five members of staff and the counselling, personal development, training and education services they provide to between 300-400 people each year.
• A number of after schools projects have already closed and others are under threat. In June 2008 funding ceases for 250 projects and quite a number will close eg Camowen Partnership in Omagh is facing 23 job losses through the closure of projects in three local areas.
• Kilcooley Women’s Education and Development Group faces possible closure on 30 June if no funder is found. Along with eight job losses, 250 women and 40 children will be affected by loss of provision.
• Aware Defeat Depression, a small organisation working in mental health and receiving only £20,000 per year receives only 68% of the costs of the services it provides for a health trust and meets the remainder from other charitable income. It has been told it will be cut by 9% over the next three years.