Dear Colleagues,
What do we make of the Autumn Budget announcement – the proposed increase in taxes and public borrowing brings additional funding for the NHS and local government, but what about the VCSEF sector on whom they are so reliant?
On the one hand, the increase in the National Living Wage is a good thing but that along with the increase in employer national insurance contributions, will create additional (unfunded costs) and will be challenging for the VCSEF sector across the UK
NACRO notes that in the UK, since 2011, the VCSEF sector workforce has grown by 30% and in 2024, the VCSEF sector employed approximately 978,000 people. This is about 3% of the UK workforce, almost two-thirds the size of the NHS workforce, the largest single employer in the UK. The VCSEF sector’s workforce plays a key role in delivering essential services, with many employees working in social services, health and education.
We have recently undertaken a survey of the Wolverhampton VCSEF sector which may reflect the national picture. We hope to collate and share the results in the New Year.
As the sector moves forward, its contribution to the UK’s social and economic landscape will remain critical, particularly in supporting communities and delivering social value. Other announcements that will assist the core work of the VCSEF sector are regarding Household Support Fund (HSF) and UK Shared Prosperity Fund (UK SPF) which will continue for a further year.
Going forward, we need to continue to lobby to have long term funding agreements in place to support and value the contribution of the VCSEF sector.
Sharon Nanan-Sen,
Chief Executive Officer
✉️ sharon.nanan-sen@wvca.org.uk