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Cabinet Office cuts £11m from third sector budget

Helen Barrett, Regen.net, 29 July 2010

The Office for Civil Society (OCS) in the Cabinet Office is to cut £11 million from its 2010/11 budget for supporting charities, social enterprises and youth volunteering, it announced today.

Youth volunteering charity V, third sector support body Capacitybuilders and the commission responsible for overseeing the Compact accord between the Government and the third sector are among those organisations affected.

V was hardest hit with losses totalling £7 million. It will lose £5 million from its £15 million match fund, which provides money for the charity to match private sector investment in youth volunteering projects. The charity will lose a further £2 million from its £39 million annual grant, the OCS said.

In a statement, chief executive Terry Ryall, said: "We are considering how we can make the 5 per cent saving without impacting front-line services.

"Our priority is to preserve work already under way and to protect opportunities for young people. We will be able to meet all our existing match fund commitments."

Capacitybuilders, the government agency responsible for providing advice and support for charities, will lose £1.3 million. In a statement, the agency said existing grant holders would be unaffected and committed grants would continue to be paid. But further new awards will be cancelled, it said.

The Commission for the Compact, the body responsible for overseeing the commissioning agreement between the voluntary and public sectors, loses £0.4 million. OCS has cut £2 million from its own unallocated spending.

Stephen Bubb, chief executive of umbrella body the Association of Chief Executives of Voluntary Organisations, said: "This has been on its way for a while. OCS has done the best of a tough job and we’re pleased that they have worked hard to protect organisations working on the front line and those working closest to them."

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