BIG increases funding in response to crunch

Editor
26 June 2009 - 3:00pm
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Tagged as:

• BIG
• credit crunch
• Funding
• Lottery
• recession
• VCS

An additional £43million is to be invested across the UK to tackle the longer-term effects of the recession on the UK's communities. BIG is working closely with stakeholders to determine what form the support will take, but it is thought it could include targeted funding for specific services such as debt advice and support to help train increasing numbers of volunteers.

Responding to the increasing pressure facing the voluntary and community sector (VCS), BIG has also reprioritised and refocused its portfolio and increased the budgets of some of its most popular programmes this year, to the tune of around £45million. All these adjustments have been made to help get funding fast to where VCS voices are saying it is needed most.

The move includes a £20million increase in Reaching Communities (England), a programme through which VCS organisations can access up to £500,000 for up to five years. A further £7.2 million is being invested in 16 new projects announced today through BASIS (England) that will help build capacity in the sector with immediate effect.

A key difference in BIG's approach will be an enhanced UK-wide target that at least 80 per cent of funding goes directly to the Voluntary and Community Sector between 2009-2015. A range of other factors that will determine BIG's approach to funding through to 2015 are contained in BIG's Strategic Framework, http://www.biglotteryfund.org.uk/bigthinking

Peter Wanless, Chief Executive at the Big Lottery Fund, said: "I am very aware of the tough times communities are experiencing and the increased demand this is inevitably placing on the voluntary and charitable sector. While there are some reports that the recession may be easing, we know that the full impact on the UK's communities is still working its way through, impacting on homes across the nation, bringing family breakdown, mental illness, unemployment and personal debt.

"The Big Lottery Fund aims to work as an intelligent funder and we are responding to this critical time with a substantial package of support designed to reach those that need it most. Right now, the last thing the Sector needs from us is another targeted fund with its own eligibility criteria, rules and procedures. By channelling more money through our existing funding streams, we can respond immediately to the increasing demand from local groups and organisations coping with the crunch. We are also using the close working relationships we have with experts out there to identify how we can effect distinct and additional support to recession-hit communities in ways that won't otherwise take place."

Today's investment responds to evidence from voluntary sector bodies that the recession is putting severe pressure on the UK's voluntary and community groups. According to research compiled by NAVCA**, the national voice of local third sector infrastructure in England, demand for services is up 30-50 per cent in some geographical areas - and resources, such as income and staff, are under strain.

The investment has also been informed by BIG's recent consultation, Big thinking, which asked stakeholders and the wider public how BIG's estimated budget for new funding programmes of around £2.8 billion should be spent over the next six years [between 2009-2015]. Big thinking attracted around 3,500 online survey responses and involved a further 3,000 people at events across the UK.

Sir Clive Booth, Chair of the BIG Lottery Fund said: "BIG Thinking was the most open consultation process the Big Lottery Fund has ever had. We've listened to what our stakeholders said and have incorporated that feedback to develop our Strategic Framework document. From this starting point, we will develop our funding programmes to distribute good-cause funding over the coming years that will make a lasting impact on the lives of communities and people in need throughout the UK."

Seamus McAleavey, Chief Executive of NICVA, said in response to the Big Lottery Strategic Framework document, "NICVA has continually called for funding from BIG to go to organisations in the voluntary and community sector and not to the statutory or private sector.  We are pleased that BIG in Northern Ireland has exceeded the obligation for 80% of funding to go to the sector, but would like the commitment to go much further.  NICVA will continue to campaign for 100% of BIG's funding to go directly to those communities in most need, particularly in these times of recession where demand for charities services are increasing."

Stuart Etherington, CEO, NCVO said: “BIG have responded with positive action to the pressure the recession is placing on voluntary organisations. This funding will become even more critical in the coming years and we are delighted they have taken these steps. We look forward to working with them to ensure that money is directed to those communities most in need. We welcome the commitment to 80 % however we still believe that 100% of BIG’s funding should go directly to the voluntary and community sector and will continue to campaign for this.”

The Big Lottery Fund (BIG), the largest distributor of National Lottery good cause funding, is responsible for giving out half the money raised for good causes by the National Lottery. In the five years since BIG’s inception in June 2004 BIG has supported communities with more than £2.8 billion invested in 89,000 projects across the UK.