The DCMS Committee has published
the Government's Response to its report urging additional support
for the charities' sector which has been hit by falling income
and rising demand as a result of the Covid-19
crisis.
MPs had called upon the
government to take urgent
action in key areas within four weeks: review business support
schemes to ensure they fully met the
needs of the charity and voluntary sector; publication of clear
and comprehensive guidance about criteria used to allocate
government support and how to apply; establish
a stabilisation
fund to secure sector's long-term financial health and
diversity.
DCMS Committee
Chair
said:
"The government is
taking a head in the sand approach to the plight of charities,
struggling for survival against lost income and soaring demands
for their services from people hit hard by the Covid-19 crisis.
Ministers fail to recognise that the charities and voluntary
sector present a special case at such a critical time for the
country.
"Our report made a
clear call on government to urgently review whether its schemes
to help businesses really met the needs of charities at risk of
closure. We also urged backing for a stabilisation fund which
would ensure the viability of this sector to provide longer term
support for those in need in the difficult times ahead. The
government still doesn't seem to understand that there are
charities providing vital services, which are not directly
related to the Covid-19 response, that need further
support.
"The fact
that the government has failed to engage in any meaningful way
with wider issues raised by our report, including the lack of
clarity about how charities can access the funds that are on
offer, is deeply disappointing. Charity shops might be reopening
for the first time since lockdown but their future is far from
secure."
ENDS
Key action the report the Covid-19
crisis and charities Report called for:
-
Immediate
review of measures to support businesses to ensure they fully
meet the needs of the charity and voluntary sector to prevent
charities from folding
In its response,
the government defended the furlough scheme however failed to
address issue of charities doing important
work that was not directly related to the Covid-19 response and
therefore not adequately covered by the funding package despite
staff being required to continue to provide services:
"The scheme is not designed to help charities or
other organisations cut the cost of continuing to deliver
essential services."
-
Publication of
clear and comprehensive guidance about the criteria that will
be used when allocating support and how organisations can apply
for it, without delay
The response signposts guidance for charities on how to apply for
support however the government failed to provide an explanation
or mitigation for the Committee's concerns about how long it took
to publish the guidance or the lack of transparency around how to
apply, cited as a critical delay for the survival of some smaller
charities.
-
Backing for
charity sector's call for stabilisation fund to secure its
long-term financial health and diversity
The government referenced a further £150 m. it had unlocked for
the sector however failed to address the recommendation to
establish a stabilisation fund: "It is important to
strike the right balance between supporting the sector's
important work and ensuring its ongoing independence and
sustainability."
Note to
editors:
The full Government
Response to The Covid-19 crisis and
Charities' Report is attached to this email.
