The role of the voluntary sector in service delivery

As part of SR2002, the cross cutting review of the role of the voluntary sector in service delivery explored how Central and Local Government could work more effectively with the voluntary and community sector (VCS) to deliver high quality services.

The review was underpinned by a recognition of the substantial contribution that the VCS makes to the delivery of high quality services, and - as set out in the Compact - the continued independence of the sector.

It highlighted five key areas for reform, all centred on building a strong and independent voluntary and community sector (VCS), and made a number of recommendations:

  • To involve the VCS in the planning as well as the delivery of services
  • To forge long term strategic partnerships with the sector
  • To build the capacity of the sector
  • That it is legitimate for service providers to factor in the relevant element of overhead costs into their cost estimates for services delivered under contract
  • To implement the Compact at all levels.

The Active Community Directorate (ACD) at the Home Office received £188m over the three years to 2005/06 - an annual average real terms increase of 20% - and leads on delivering in full the recommendations of the cross cutting review.

In addition, the Government earmarked £125m in Spending Review 2002 for the creation of Futurebuilders - a new one-off three-year fund to assist VCOs in their public service work. Its aims are to overcome obstacles to effective service delivery, to modernise the sector for the long term, and to increase the scope and scale of VCS service delivery.

“This is a first for the voluntary sector: direct involvement in the design and administration of a major new fund. We have listened to the sector and acted to place them at the heart of this Government’s modernisation and productivity agenda.”

Paul Boateng, Chief Secretary to the Treasury and Chair of the Review (in his former role as Financial Secretary to the Treasury.

The full report is available below in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.

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