DH launches consultation on a coherent Third Sector Funding strategy

The Department of Health will today - 12th December 2007 - launch a consultation document into funding provision of third sector organisations such as charities, voluntary organisations and social enterprises. This aims to form a more coherent portfolio of strategic investment in the sector.

The Department of Health currently invests in the region of £80million per year into Third Sector organisations but this is done in a piecemeal way.

The intention of the consultation and subsequent actions is to ensure that Department of Health funding and investment regimes are: explicitly supporting DH priorities; open, inclusive and transparent; informed by third sector expertise and experience and embrace the principles laid out in the Compact*.

  • The consultation proposes that all investments should be underpinned by clear principles including:
    o equality, inclusivity and accessibility
    o Recognise and embrace Compact* principles
    o Robust but proportionate evaluation
    o Have relevance to the wider delivery chain and health and well-being agenda

Ivan Lewis says:

“I am delighted to be launching this consultation process to inform the review of DH funding of the third sector. The sector has key roles as mainstream partners in delivering improvement of services across the health and social care system.

It is critically important that mechanisms for funding and investment in the sector reinforces their critical roles and supports the development of a strong third sector as a key element of sustainable communities that enable citizens to engage with and use health and social care services to live independently and improve their lives.”

Steven Bubb, Chief Executive at ACEVO said:

“Funding issues are a top priority for chief executives in the third sector. One size will never fit all. The sector needs sustainable funding which supports excellence in service delivery both locally and on a national basis, and promotes innovation.

“The level of consultation with the sector so far has been an example of best practice from the Department of Health.

“We're pleased that the Department is taking a strategic approach to their funding of the sector, and confident that this will mean best value for the shared objectives for the sector and the Department.”

Vanda Gohil, Director of Voice for Change England:

‘We welcome the opportunity to work with the Department of Health and involve BME Third Sector organisations in shaping the review, and ultimately play a part in reducing the health inequalities for BME communities. Hopefully the review will serve as an example of good practice that can be used across Whitehall.”

The consultation document proposes a strategic approach to managing DH’s funding relationship with the third sector. The vision for this approach includes 5 functions that are informed by the National Audit Office report describing the Shopping, Giving, Investing model.

o Investment in Strategic Partners – DH propose to develop the model used by OTS & DCLG
o Support innovation, excellence and service development – new proposals for project funding which include building in the sustainability of new projects from the beginning by encouraging links to local commissioners
o Promoting and supporting volunteering – development of the Opportunities for Volunteering Scheme with proposals including investment in volunteering infrastratucture
o Contracting for specific expertise – DH utilises third sector expertise and experience and better use could be made of contracting arrangements to support this

The consultation will close on 20th March 2008.

Ends

Notes to Editors:

1. For media enquiries only contact the DH Media Centre on tel: 020 7210 5658

2. The consultation will launch on the 12th December 2007 and close on the 20th March 2008

3. *The Compact is the agreement between government and the voluntary and community sector to improve their relationship for mutual advantage and community gain. The Compact includes Codes of Good Practice - on black and minority ethnic groups, community groups, consultation and policy appraisal, funding and procurement and volunteering. These cover rights and responsibilities which government, local public bodies and the voluntary and community sector should reflect in their relationships to make them work.

1. A series of regional and themed workshops will be held throughout the country, regional workshops being held in partnership with regional VCS forums and BME forums / networks

2. This review is looking at all of DH funding, including grants both through section 64 and OFV, and more formal contract arrangements. The review will not affect the level of funding by reducing or increasing it.

3. More information, copy of the consultation document, details on how to get involved and how to respond are at www.dh.gov.uk/thirdsectorfundingreview.gov.uk E-mail thirdsectorfundingreview@dh.gsi.gov.uk

4. Voice4Change England is a new partnership of national and regional organisations that speaks for the interests of the Black and Minority Ethnic Third Sector at local, regional, and national levels. It reaches into a wider network of more than 5,700 BME Third Sector groups and organisations.