THE VALUE AND IMPACT OF THE THIRD SECTOR IN LEEDS 2015
A guide to the third sector in Leeds and an analysis of the contribution it makes to the City and its key priorities
January 2016
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CONTENTS
Introduction
Section 1 What is the third sector?
Section 2 Facts about the third sector in Leeds
Section 3 How the third sector operates
Section 4 Contribution to Strategic Priorities
Section 5 Pressures and Opportunities
Section 6 Key Documents and Policies
Appendix 1 : Compact for Leeds Charter - setting out the principles that should guide public and third sector working relationships
Appendix 2 Leeds Third Sector Ambition Statement - a description of what a thriving third sector will look like, with a mixed economic model and diversity in organisations’ size and governance
Appendix 3 Leeds Charter for Social Value
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INTRODUCTION
This is the first publication of The Value and Impact of the Third Sector in Leeds.
It is primarily a portfolio of key policy documents and information about the third sector in Leeds. It describes what the term ‘third sector’ means and provides an overview of the scope of the sector - its size, reach into local communities, range of activity, its importance as an employer and as a generator of economic wealth in the City. It also details some of the main sector and partnership arrangements in Leeds.
The aim is to “set the scene”, with a plan for the documents to be refreshed annually. We believe it will be a useful tool in many ways. For those who are new to the sector, it provides a good introduction and background briefing. For those who are more familiar with the work of the sector, it provides an opportunity to learn more about the current operating environment as well as appreciating some of the challenges and opportunities that exist.
This first publication focuses primarily on the partnerships between Leeds City Council and the third sector. The aim is that, during the course of 2016, other public and private sector partners will be invited to add their own contributions and this will be reflected in the 2016/17 report.
This is just one of a number of initiatives that are being introduced to help demonstrate the value of the sector in Leeds. It will be followed with further information, analysis and case studies about the sector in Leeds which will be published on the Doing Good Leeds website at www.doinggoodleeds.org.uk.
As it is the first report of its kind, we would welcome feedback as to its usefulness and if there are other areas that you would also like to see included in future reports. Please send feedback, in the first instance, to [email protected] and [email protected].
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SECTION 1 WHAT IS THE THIRD SECTOR?
At various times the sector has been known as the 'voluntary and community sector', whilst the current government talks a lot about 'civil society'.
In Leeds, when we talk about the third sector, we mean voluntary organisations, community groups and charities, as well as the community activities undertaken by faith groups. We also include social enterprises and community interest companies where there is a wider accountability to the public via a board or a membership and where profits are re-invested in their social purpose. The term encompasses frontline organisations delivering services, as well as infrastructure organisations, whose main purpose is to support the work of other groups.
The third sector is that part of society and the economy which is organised primarily around social purpose and when it trades, it does so in order to advance that social purpose. The objective of the third sector, is generally not to make a profit for personal gain or for shareholders, nevertheless the contribution to the economy is significant. For example, 1 in 50 employees in the UK work in the third sector (Labour Force Survey/NCVO UK Civil Society Almanac).
The sector is responsible for much of the everyday community infrastructure in Leeds that supports people through the good and bad times in their life: child birth/parenting classes, child care, support for families, school holiday play schemes, meals on wheels, respite for carers, therapy and counselling, benefits advice, crime prevention, work with offenders, operating community facilities, providing housing, mediating disputes and building good community relations.
It includes the hundreds of grassroots community activists, community and neighbourhood groups that operate below the radar, that are vital to building and sustaining healthy communities. It also includes major mainstream institutions like the hospices and the high profile arts organisations, such as Northern Ballet and Opera North.
The sector is well-known for is vibrancy and innovation, its passion for making a difference to the lives of people in Leeds and its ability to engage with people to help them increase their capacity to do things.
The Leeds third sector is powered by approximately 200,000 volunteers, employs over 13,000 staff and contributes significantly to the economy of Leeds. It is diverse in its activities, its participation and the size and governance of its organisations, whilst it reaches across the city into most neighbourhoods and communities.
National Charities Self-help groups Community Interest Companies Voluntary Organisations Local charities Community organisations Industrial and Provident Societies
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SECTION 2 FACTS ABOUT THE THIRD SECTOR 2015 - 2016
1.1 Size of the Sector
We cannot categorically confirm the exact size of the sector because there are so many different types of legal structure and no requirement for them to register in a single place. The added complexity is that some organisations are based in Leeds but their activities benefit people outside the city and, in addition, organisations based outside Leeds provide services to local residents.
The best current source of data is Connect Leeds, a database with core details about third sector organisations in Leeds managed by a steering group working with Leeds City Council’s Libraries team.
A detailed analysis of the data was undertaken in October 2014 and a Baseline Report was written. The key conclusions have been used in some of the commentary below. Good progress has been made with cleansing and updating the information on Connect Leeds although more work needs to be done to ensure that it is a more comprehensive representation of the entire sector.
Some of the key findings from the Baseline Report are:
There are 1,870 organisations registered on Connect Leeds Each organisation is asked to state its primary service, with the top 4 being: Arts & Culture (310), Communities and Localities (277), Faith (207) and Health & Wellbeing (188). The lowest ranked are Economy and Enterprise (22) and Crime Prevention and Reduction (8). However, when combining all the key services they cover, the top 4 are: Communities and Localities (379), Health and Wellbeing (376), Arts & Culture (308) and Faith (217).
We also looked at other data sources:
The Charity Commission database reveals 1,643 registered charities with a Leeds address (though not all operate in Leeds). In 2014/15, Leeds City Council made payments to 2,037 individual organisations classified as being “third sector” (but these will also include organisations not based in Leeds). The most up-to-date Cabinet Office figures are from 2010. They indicate that the total number of registered organisations in the voluntary sector in Leeds is 1,528 (National Survey of Charities and Social Enterprises undertaken by Ipsos MORI for Cabinet Office in 2010). Research by the National Council of Voluntary Organisations (NCVO) and the University of Southampton found that, on average, there are 3.66 Below the Radar (BTR) organisations per 1,000 population (Mohan, J et al (2010). Northern Rock Foundation Briefing Paper). If this figure is applied to the city of Leeds, it can be estimated that there are 2,740 BTR organisations in the City (in addition to the registered charities and social enterprises).
Combining the estimated numbers of Below the Radar groups and the registered charities on the Charity Commission database could lead us to conclude that there over 4,000 separate third sector organisations (TSOs) in Leeds. However, as detailed above, some may be based in Leeds but deliver services elsewhere. None of these figures take into account the community groups that are more membership based, including the vast numbers of sports associations in the city, or the uniformed groups (Brownies, Guides etc).
For the purpose of this report, therefore, our conclusion is that there are over 3,500 Leeds-based TSOs providing services for local people, although the data analysis below is based on the 1,870 registered on Connect Leeds.
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1.2 Size of groups within the third sector
The size of groups according to income within the sector is also very relevant.
NCVO estimates that 81% of the third sector is made up of micro or small organisations, 14% are medium and 5% are large. If we extrapolate these percentages for Leeds, based on 3,500 organisations we would see the following potential profile.
No of grps in Definition NCVO % Income Leeds Micro 64% under £10k 2,240 Small 17% £10-100k 595 Medium 14% £100k-£1m 490 Large 5% £1m+ 175
When analysing the Connect Leeds database, a total of 1,264 organisations included data on income (albeit using different income brackets), which reveals the following:
Income Bracket No of Organisations Percentage Up To £20,000 591 47% £20,000 - £50,000 140 11% £50,000 - £250,000 259 20% Over £250,000 120 9% Over £1 million 154 12% Total 1,264 100%
What is interesting to note is that the Connect data sample reveals 50% with an income of under £20,000 and we know that many of the smaller groups are not registered on the site. We can then comfortably confirm that approximately 50% of the sector has an income of under £20,000. At the other end of the scale, the research reveals 154 of the TSOs have an income of over £1m. Further investigation reveals that the majority of those are branches of national charities and they have stated the national income, not the income at a Leeds level.
1.3 Workforce
The Connect Leeds analysis also looked at the number of employees in Leeds. Unfortunately only 493 groups had completed the data, so the analysis is only partial. It reveals that 72% of the sector has fewer than 5 staff (including those groups with no staff).
If we were to take the figures at the upper ends of each scale (i.e. 5, 10, 20 etc.), this would suggest that there are approximately 5,720 FTE employees in the third sector in Leeds and that is just on a sample of 493 groups. We believe the actual numbers are at least three times as high and estimate a total FTE workforce of 17,000.
Number of FTE Number of Percentage employees Organisations None 207 42% 1-5 146 30% 6-10 46 9% 11-20 34 7% 21-50 26 5% 50+ 34 7% 493
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1.4 Volunteers
The actual numbers of volunteers working in Leeds is unclear, as there is no need for them to register anywhere, or for TSOs to report how many volunteers they have.
Only 306 of the organisations registered on Connect gave information about how many volunteers they had and this reveals the following, with the smallest percentage of respondents being those who don’t have any volunteers. This helps to demonstrate the importance of volunteers to most TSOs in Leeds.
Number of volunteers Number of Percentage Organisations None 14 5% 1-5 70 23% 6-10 75 25% 11-20 53 17% 21-50 46 15% 50+ 48 16% 306 responses
Estimates from work undertaken by Voluntary Action Leeds indicate that: 1 in every 4 people (200,000) in Leeds volunteer regularly for at least 5 hrs a month 1 in every 2 people (a further 200,000) volunteer occasionally (at least 5 hrs a year)
The above figures include, for instance, approximately 25,000 volunteer trustees/management committee members of third sector groups, many of whom volunteer for at least 10 hours each month.
Accurately quantifying the contribution made by volunteers is extremely complex, but it is likely to be in excess of 13 million hours a year. Even if they were paid the minimum wage of £6.70 per hour, this would cost the City a staggering £87.1 million each and every year.
But this really is the tip of the iceberg, as there are likely to be as many people providing volunteering-type services that don’t designate themselves as volunteers, per se. For instance, a report by Carers Leeds in 2014 revealed that there are 72,000 unpaid family carers in Leeds, which saves the city £1.4bn in unpaid care each year.
There are also literally thousands of people who give their time freely to support the work of sports clubs, many of whom define themselves as coaches rather than volunteers. Lastly, there are those who are being ‘neighbourly’ - the many thousands of people who provide occasional help to others within their community.
1.5 Contribution to the City
As well as the significant contribution the sector makes to the social fabric of the City, it also makes a very valuable economic contribution in many ways. TSOs: Employ staff who pay tax Own and rent property and pay council tax Often buy goods and services locally Raise income from outside of the city through donations and contracts (the last accurate analysis, in 2007, revealed £90m was brought into the city from outside, by the third sector).
We also know that for every pound invested by the Council in third sector organisations, they bring in many times as much from their own fundraising and income generation activities. Page | 7
Although it is not possible to provide accurate figures for the contribution of the sector in Leeds, a detailed analysis was undertaken two years ago in Manchester (State of the Voluntary Sector 2013). The composition and size of the sector in Leeds is similar to that in Manchester, so it is possible to draw some very broad conclusions by looking at some of the results from their report.
Some of the more interesting facts and figures for Manchester included:
Paid staff and volunteers in the Manchester sector contribute an equivalent of £721m of gross added value to the economy An estimated 12,400 full-time equivalent staff (FTE) in 2012/13, with paid staff contributing the equivalent of £390m worth of GVA (Gross Value Added) to the economy per annum An estimated 94,300 volunteers contributing 370,400 hours of their own time and an equivalent GVA contribution of £331m 90% of the income is concentrated in large and medium sized organisations, although they only form 1/5 of the total sector 10% of the income goes to micro and small organisations, who account for 4/5 of the size of the sector
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SECTION 3 HOW THE SECTOR OPERATES
The input from and dialogue with the third sector has always been seen as important and has a history of strong support from Leeds City Council and NHS Leeds (and now by the Clinical Commissioning Groups). More recently, we have seen greater involvement with, and support from, the University of Leeds and Leeds Beckett University. This wider engagement is even more important now than it has been before, as services look to be community-based and person- centred with a focus on prevention.
One of the key issues for individuals and organisations wanting to engage with the third sector in Leeds is finding out who to contact. Some organisations are quite small and have less ability to fully engage in the more established mechanisms. Others are large, national organisations, some of whom have few links with local communities, and sometimes less interest in local engagement and collaboration. The temptation can be for public sector colleagues to seek to engage with the “third sector” by speaking to the organisation with whom they have the strongest contacts, or to go to a group they perceive as being well-established. This is not always the best way to get a representative or appropriate perspective. A good first point of contact for colleagues in the public sector wanting to engage with the third sector is Third Sector Leeds (www.doinggoodleeds.org.uk/tsl) or the named lead third sector contact within their own directorate/organisation.
Over the past 3 years, significant efforts have been made to address this and the situation today is significantly improved. The single database of local third sector organisations (Connect Leeds) and an over-arching website (www.doinggoodleeds.org.uk) are two key developments.
3.1 Third Sector Partnership (TSP)
The Leeds Third Sector Partnership held its first meeting in March 2011 and has now become an established part of the city leadership and partnership arrangements. It brings together public sector partners and third sector representatives and provides a forum for strategic influence, coordination, challenge and scrutiny of the policies and decisions that impact on the third sector.
The partnership has a shared commitment to maintain and develop a thriving third sector, recognising that the sector has a key role to play in delivering the city’s key ambitions.
The partners aim to build coherence and added value as they share information, provide comment, challenge and, where appropriate, steer on the policies, strategies, investments and actions that impact on the third sector. It has become a very useful space in which to raise issues of concern, and to adopt a cross-sectoral approach to key issues and initiatives.
From time to time, the TSP sets up “task and finish” groups to focus on key issues. Those currently in operation are looking at: improving the engagement of the private sector; increasing income to the city from local and national private funders; how to support the development of a more enterprising culture in the third sector; commissioning out of public sector services/developing a training programme around commissioning.
TSP meets 6 times a year and is chaired by Cllr Christine Macniven, who is designated as the Council’s third sector Member Champion. The Vice Chair is the Independent Chair of Third Sector Leeds, Norma Thompson. It is attended by: The Council’s Corporate Leadership Team member, designated as Third Sector Lead Officer (James Rogers, Assistant Chief Executive, Citizens and Communities) Senior Officers from each of the Council Directorates and the Localities University of Leeds Leeds Beckett University Page | 9
NHS Clinical Commissioning Groups West Yorkshire Police – via a nominee from the Safer Leeds Partnership Third Sector Leeds sends up to 6 nominees In addition there is the opportunity for up to 5 additional third sector colleagues to attend, to provide expertise and input on specific agendas/discussions.
The respective public sector partners are at different stages in the development of their internal strategic mechanisms for engaging with the Third Sector Partnership. The Council, for example, has designated a member of the Council’s Executive Board as the strategic lead on the third sector.
3.2 Third Sector Leeds (TSL)
Since 2013, the sector has also come together to work collectively as Third Sector Leeds – a developing partnership designed to support multi-sector strategic thinking in the city.
TSL is now widely recognised as the city-wide alliance of voluntary and community organisations, charities, faith groups, and social enterprises in Leeds. TSL provides a strong focal point for the sector and is a channel for strategic voice and influence. Secretariat support is provided by Voluntary Action Leeds (VAL), under a contract paid for by Leeds City Council.
The aim of TSL is to be the point of engagement with the third sector in Leeds, working together to: Co-ordinate representation of the third sector on key statutory partnerships and boards Engage with and influence the decision-making processes of all its key stakeholders, including Leeds City Council and NHS Leeds Produce positioning papers on topics of interest to the sector Develop third sector policies regarding key strategic issues, such as commissioning, community asset transfer etc.
Any locally-based TSO can join the Third Sector Assembly. This has a 130-strong membership (as at June 2015) and meets twice a year. At its inaugural meeting, in Spring 2014, members elected the TSL Leadership group and approved an outline strategy.
The TSL Leadership group consists of representatives from the key forums identified below, as well as other elected members. They meet every 8 weeks to discuss and debate a range of issues. Members include representatives for:
Advice & Financial Inclusion (nominated by Advice Leeds) Arts and Culture (elected by the Assembly) Crime Prevention & Reduction (nominated by Crime Reduction Network) Environment (nominated by Environment Leaders Group) Health and Wellbeing (nominated by Healthy Lives Leeds) Economy & Enterprise (represented by Leeds Community Foundation) Leeds Older People’s Forum (nominated through the network) Physical and Sensory Impairment Network (nominated through the network) Tenfold (nominated through the network) Housing and Homelessness (nominated by Supporting People’s Providers Forum) Support and Development Organisations (represented by Voluntary Action Leeds) Children,Young People & Families (represented by Young Lives Leeds) Volition (nominated through the network) Area Leadership Team South East (elected by the Assembly) Area Leadership Team East North East (elected by the Assembly) Area Leadership Team West North West (elected by the Assembly)
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TSL Goes Local
In 2013, TSL launched “Third Sector Leeds Goes Local” in order to facilitate partnership working in the locality context. Formal meetings are held twice a year in each of the three key geographical areas and are open to all. Past conversations have included community resilience, inclusion, the environment and, more recently, how the sector can contribute to the Community Hub and Committee agendas. TSL Goes Local is continuing to develop and, as of June 2015, has extended the partnership to include the three Clinical Commissioning Groups in Leeds - North, West and South & East. All meetings and activities are co-produced by key partners - TSL Locality representatives, the Area Leaders and their teams.
The aims of TSL Goes Local are to: Make better use of existing partnership arrangements at the area and city-wide level Improve networking and collaboration within the third sector Identify challenges facing communities in the three area Localities that could be tackled most effectively by strengthening partnership work between the statutory and third sector To enable partners to access expertise in the sector more easily To increase communication between partners, councillors and the third sector, especially activity not directly supported by existing arrangements To enable meaningful consultation and involvement from the sector in key local developments
Third Sector Leeds (TSL) and the TSL Leadership Group can be a useful place for public sector partners to consider how to engage or work with the sector on new initiatives, or to consider the impact on the third sector of proposed strategic policy and operational change. In the first instance, colleagues should contact Third Sector Leeds (https://doinggoodleeds.org.uk/tsl).
3.3 Infrastructure Organisations and Forums
An infrastructure organisation is one that exists primarily to support the work of other frontline groups but doesn’t usually deliver direct services to beneficiaries. They are also referred to as “Support and Development” organisations. The two key ones that primarily focus on Leeds are Leeds Community Foundation and Voluntary Action Leeds, alongside WYCAS who have a broader West Yorkshire Focus.
A number of membership networks also exist to enable that direct link to TSOs in Leeds. They are all well-established and are linked into strategic decision-making within their specialist areas, enabling informed, effective partnership working across the sector and with partners in Leeds. They include:
Leeds Older People’s Forum PSI Network - Physical and Sensory Impairment Tenfold Volition Young Lives Leeds
A number of more informal forums, that don’t have paid staff, also exist, who meet perhaps 2-3 times a year to discuss relevant matters. They include: Crime Reduction Forum Environment Forum Economy & Enterprise Forum Supporting People’s Providers Forum
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3.4 Other relevant partnerships
Leeds ACTS! (Academic Collaboration with the Third Sector): a partnership programme set up in 2014. It aims to drive collaboration between the third sector and higher education institutions in Leeds. All three Leeds universities are involved (University of Leeds, Leeds Beckett University and Leeds Trinity University). It is a:
Forum to build awareness of third sector priorities and higher education strengths that can help meet them Bridge to bring third sector leaders and academics together and build working relationships Partnership to develop a shared five year programme of work to address priorities
Leaders for Leeds: an informal network of individuals from all three sectors who meet together to discuss how to make a positive difference in Leeds. Members are welcome to bring forward topics for discussion at the bi-monthly meetings that are held in a range of locations.
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SECTION 4 THIRD SECTOR CONTRIBUTION TO STRATEGIC PRIORITIES
The majority of organisations that make up the third sector operate at a micro, grassroots level which adds to the richness and quality of people’s lives with activities, such as uniformed groups, sports and arts activities, parent and toddler groups etc. These organisations and the impact they make on individuals’ and communities’ lives is often not very visible, but it is significant.
Each TSO is set up to deliver its own activities, usually in response to local need. On a collective basis, however, the third sector also makes an increasingly important contribution at a strategic level. Third sector representatives and advocates are established and valued members in a range of partnership arrangements and play an active role in helping deliver the city’s key priorities.
There is now much greater recognition than before that the sector has significant knowledge, expertise, experience and commitment to achieving better outcomes for local people. We need to continue to support the belief that we don’t need to invent a local third sector – we are already here – but we do need to invest in it.
The third sector is represented on key decision-making boards, including: Third Sector Partnership Area Leadership Teams Children and Families Trust Board Communities Board Health and Well Being Board Housing and Regeneration Board Sustainable Economy and Culture Board Safer Leeds Executive Leeds Safeguarding Children Board Scrutiny Boards
To give some idea of the strategic work undertaken by many TSOs in Leeds, we have listed below some key priorities where the contribution of the sector is significant.
There is one over-riding area where the third sector is particularly active which cross-cuts all the themes below. This is in the field of tackling inequalities and supporting vulnerable people. For instance, third sector groups in Leeds are:
Vital in terms of the support provided to: refugees and asylum-seekers; people from BAME and other minority communities; and supporting the work of groups working with the LGBT community (Lesbian, Gay, Bisexual or Transgender). Actively providing support to the most vulnerable in society, whether that be due to ill-health or disability, or through personal or financial circumstances.
4.1 Health and Wellbeing
The city has a clear desire to promote a more joined up approach to health and wellbeing where the Council, CCGs and TSOs work closely together to deliver outcomes for local people. This partnership approach is enshrined in the work of the Health and Wellbeing board. The key priorities are to ensure local people: Have the best start in life Live longer and have healthier lives, with the poorest improving their health the fastest Live full, active and independent lives Live in healthier and sustainable communities
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The third sector plays a significant role in helping to tackle health inequalities through the work it does with vulnerable and at risk people, in particular. Activities include: Promoting healthy eating and exercise Providing support for people with specific illnesses, such as heart disease or diabetes, and more generally providing support for those with learning, physical and mental health support needs Its role in providing end-of-life care Provision of counselling, advice and 1-1 support Reducing the impacts of some of the wider determinants of health, such as poverty, poor housing and low educational attainment
4.2 Children, Young People and Families
The city has signed up to the Child Friendly Leeds initiative that aims to ensure that all children and young people: are safe from harm; do well at all levels of learning and have the skills for life; choose healthy lifestyles; have fun growing up; and are active citizens who feel they have voice and influence.
There is an increasing understanding that we cannot just provide support for children and young people outside of the all-important family context and that the most successful interventions are often those that adopt a whole-family approach.
Young Lives Leeds is a network of third sector groups working in this area and this provides a robust base to enable the sector to be involved, engaged with and consulted on initiatives, both locally and on a city-wide basis. This was recognised in the recent Ofsted inspection in 2015 when Leeds City Council were awarded Outstanding status for their Leadership Management and Governance work (including their links with the third sector).
Activities where the third sector is specifically involved are: Leading on initiatives around family planning and parenting Partnership work with the 25 Cluster Partnerships (focusing on local priorities delivered by schools, local organisations and third sector groups)
4.3 Economy & Enterprise
A prosperous, sustainable and inclusive economy is critical to the future success of Leeds. Although it may be the private sector that primarily creates wealth, we all have a role to play in ensuring that the city has a strong economy, as well as retaining a compassionate approach. The two must go hand in hand.
The third sector does make a significant contribution to the economy in Leeds: With over 3,000 organisations in Leeds, the sector is a significant employer and makes a real bottom line contribution to the GDP of the city We are beginning to see some growth in social business start-ups The ability for third sector groups to bring in income from outside of the city (through loans, grants and other forms of investment) should not be underestimated The work of many TSOs help people to get ready for work through training, support and mentoring
We should also not overlook the fact that many third sector groups provide an “enabling service” which allows employees to remain in work, without which employers would struggle to retain and develop their workforce. This includes activities such as: childcare; counselling and help with issues such as stress; and support for people with health difficulties.
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4.4 Stronger and Safer Communities
One of the main concerns that people have is around feeling safe in the communities in which they live - their homes, the streets and the places they visit. This is one of the key areas in which the work of the sector is perhaps best recognised.
The track record of the sector on domestic abuse is second to none - it raised awareness of the issue when it was hidden, developed innovative approaches, and continues to work with victims, offenders and families to break the cycle. The sector also plays a significant role in the provision of drug and alcohol treatment and prevention programmes. Leeds is home to HMP Leeds and the Wetherby Young Offender’s Institution where we see some very interesting partnerships and new initiatives developing, including schemes that promote volunteering and skills development as a route back into work, and a focus on health, wellbeing and housing, - all critical factors for preventing re-offending. The sector makes a huge contribution to promoting community pride and community cohesion, whether on a localised level or by working with communities of interest. Its role in providing support for refugees and asylum-seekers, for instance, is absolutely critical. Different TSOs in Leeds: co-ordinate the Hate Crime reporting centres operating in Leeds; provide support to victims of anti-social behaviour and try to resolve neighbourhood disputes; provide support to the victims of crime.
4.5 Environment and Housing
Having somewhere to live is one of the fundamental necessities for individuals and families. With the changes in the city’s population and the impact of the Welfare Reform Act, there is a need to think more creatively about how we can provide homes that are fit for the future. This includes discussions about social housing, affordable housing and housing growth in general, and is an area where the sector plays a developing role.
Although provision of housing stock is primarily a statutory responsibility, many TSOs are involved in housing provision for vulnerable groups, including the Housing Associations in the City. The empty homes issue is currently being tackled in a number of innovative ways, including the work of a number of TSOs who received Homes & Communities funding to renovate a number of empty homes, and an innovative scheme called the House Doctor, funded by Leeds City Council but delivered by a local social enterprise. Leeds is rightly proud of the distinctive green character of the city, which is under-pinned by the work of many third sector groups, such as community allotments, environmental charities, furniture and paint recycling projects. TSOs support people who are homeless or at risk of becoming homeless and provide support to those who need it to achieve and sustain independent living. This includes visiting support, outreach and accommodation services.
4.6 Arts, Culture and Sport
The significant role of arts and culture in the City has been highlighted in recent years by major events and initiatives, such as the Grand Depart, the British Art Show, the Rugby World Cup and the confirmation that Leeds will be bidding to be European City of Culture in 2023. The city has a proud history in this area, much of which is only made possible through the work of TSOs across the city, such as:
The work of the Charitable Foundations linked to rugby, football and cricket, supporting the development of community sports initiatives, as well as providing specific services for those with mental and physical support needs.
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The often unseen work of literally thousands of volunteers who ensure that people of all ages have the chance to participate in, and benefit from, grassroots activity in the area of sports and uniformed groups (Brownies, Guides etc.). The majority of the city’s major cultural institutes are, themselves, third sector organisations - from the city’s more well-known organisations that focus on ballet, opera and theatre, through the hundreds of dance and drama groups and community arts programmes that give the city its vibrant cultural life.
SECTION 5: PRESSURES AND OPPORTUNITIES
There is no doubt that we are facing a challenging time on many levels. The current operating environment for the third sector is one in which there are: Increasing expectations: the public sector is increasingly contracting, with the third sector expected to provide services previously delivered by the public sector Increasing demand: for services and support from citizens experiencing hardship and a shifting demographic, with increasing numbers of older people and children and young people Diminishing resources: economic pressures on principle public sector funders, private sector investors and charitable trusts
These and other factors have sent leaders from all sectors hastening to both address the realities of spending cuts and to re-assess the ways in which all members of the community – citizens, public, third, and private sectors – can fill the gaps.
Challenges for the Public Sector
The public sector is going through the biggest period of change that it has faced – ever: Dealing with the toughest local government funding settlement in many years, meaning Leeds City Council managed a budget reduction of £150m between 2011-2014. The 2015- 16 budget sees another £46m reduction and the government has predicted that austerity will continue. Changing demographics (increasing birth rates, ageing population and increased net inward migration) leading to an increase in demand for public services. A move towards localism and locality working means public sector bodies are being encouraged to contract out much of their central services to 3rd party organisations, including private and third sector groups, giving local citizens greater choice. The Health and Social Care Bill will bring about radical changes to the structure of the health service, the dismantling of primary care trusts and the introduction of GP consortia. The Welfare Reform Bill introduced by the Department of Work and Pensions, is leading to the most radical changes to the welfare system for over 60 years. Education, too, is undergoing significant changes which are impacting on the way we prepare our young children for the future. The need to develop innovative ways to commission services that meet strategic priorities and maximise the opportunities for co-production with the sector.
The same level of resource is no longer available. We need to be prepared to do different things, or to do the same things but in a different way.
Challenges for the Third Sector
The most significant reported issue facing frontline groups is the reduction in funding. The message from all the groups consulted has been consistent – raising money is more difficult now than it has ever been and this is beginning to threaten their very existence.
The impact of reduced central and local government funding is being passed onto the third sector as well. The re-alignment of local public sector budgets has led to a minimum of 15% Page | 16
reduction in funding for main groups delivering contracts for Leeds City Council, the healthcare trusts and CCGs. Some groups with multiple contracts have seen a reduction of funding of up to 50% of their total annual income. Others have had funding removed completely. As budgets are reduced, the concern is that deprived individuals and households may face further disadvantage and will come to rely on third sector support even more, often for the provision of their most basic needs. An increased interest in volunteering from individuals and companies can sometimes put a strain on third sector groups who struggle to manage increased demand.
Estimates indicate that if the third sector were to experience reductions in public sector funding equivalent to the 27 per cent planned cut in local government support, it would amount to £3.3 billion being lost from the voluntary sector each year. The reduction in funding from public sector sources follows a period during which competition for other resources available to voluntary sector organisations, particularly grants and philanthropic donations, has already intensified.
A move from funding via grants to commissioning services brings pressures: Smaller groups feel less able to engage in commissioning activities and thus lose out on contracts. The larger organisations take on the contracts in the hope that they can then play a greater role in influencing the scope, type and quality of local service provision. We see the emergence of a two-speed sector, with a small number of larger organisations managing the bulk of public sector contracts. We also see increased competition from larger, national third sector organisations and from private sector contractors. Some groups are successful in being commissioned to run programmes in areas where the public sector used to deliver – childcare, homecare, health. However, many face “mission drift” as they spend most, if not all, of their time responding to the demands and pressures of contract delivery, and are increasingly less able to respond to emerging local needs. In many cases, these are the very needs they were originally formed to target. They cannot afford not to deliver the contracts, because this brings in the money to pay the bills. As statutory partners contract out more services, the third sector increasingly finds itself in a position where it is competing with the private sector for contracts and commissions. Although skilled in service delivery, many third sector groups are less skilled in contract negotiation and bid-writing. Losing a bid does not only mean a loss of income, which threatens the groups’ very existence, it results in a loss of that local community knowledge and trusted services being delivered by local people, with local people.
Volunteering is widely acknowledged as bringing significant benefits in terms of improved physical and mental health and improving self-confidence. However, as funding pressures increase, and staff teams decrease, the ability of established organisations to effectively manage and support volunteers decreases. There are concerns that volunteering will continue to thrive in more affluent areas, rather than in those parts of the city where the services are perhaps more urgently needed.
However, the impact of the economic downturn goes beyond income and expenditure. There is growing evidence to demonstrate that organisations are trying to meet greater levels of need from existing and new beneficiaries – particularly in areas such as poverty relief and advice services - and this will only be exacerbated by the effects of the Government's programme of welfare reform.
Challenges for Support and Development providers (formerly infrastructure)
Many of the organisations in the city are small and localised charities, or constituted voluntary and community groups. Their work is often small-scale and targeted at a particular need, or neighbourhood area. Many of them operate on very small budgets of a few thousand pounds a year, relying on volunteers, not paid employees.
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These groups are often more reliant on “outside help” from support and development organisations. They need support in collaboration, running their group, raising money, and monitoring and recruiting volunteers, for instance, so that they can grow, become stronger and more effective.
However, the funding pressures are impacting on infrastructure organisations too, with budgets decreasing and the Cabinet Office confirming that the Transforming Local Infrastructure national fund in 2011-2013 was the “last time” there would be funding this kind of support. Concerns are increasing for support and development organisations as to how they will continue to provide a vital service for frontline groups, in an environment in which they are having to move to payment for services.
Opportunities
The current situation also provides fresh opportunities for new ways of working in partnership and new ways of delivering services. In order for Leeds to continue to have a thriving third sector, the City needs to ensure that full advantage is taken of these opportunities.
Some basic principles are: Greater recognition is needed from partners that the sector sometimes has more experience and is better placed than the public sector to lead on specific initiatives. As the role of the public sector continues to change, the role of the third sector in becoming a frontline deliverer of services will increase in importance and this will mean that many more TSOs begin to operate more like for-profit businesses, perhaps with a stronger social ethos. This will lead to an increase in jobs and GDP. Many of the issues facing the city can often best be met by third sector groups who have developed deep levels of trust with beneficiaries, as well as having better understanding of the issues that many of these people face. The sector can play a more significant role in terms of helping tackle some of the key issues.
Some new developments are already taking place which need support to enable them to flourish and grow:
CCGs and children’s services cluster arrangements are providing a more local organising framework closer to the communities that schools, GPs and the third sector serve. Partnership arrangements are developing with the criminal justice system, at both West Yorkshire and district levels, through community safety partnerships and other initiatives. The Council’s Citizens and Communities Directorate, the formation of Community Hubs and the new powers of Community Committees around commissioning and decision-making highlights the need to “think local”. Working alongside the TSL Goes Local programme means we can begin to have much greater focus at a local level. The establishment of the new NHS structures (including CCGs and the Health and Wellbeing Board), gives the sector a chance to develop new relationships, for example with GPs. Through the Children’s Trust Arrangements, the sector is taking a much higher profile lead on specific initiatives. Public sector partners are increasingly using co-production as a means to engage with the third sector and service users to inform the commissioning of services. Partnership working, consortia development and greater collaboration are actively encouraged. A rise in the number of individuals and company employees wanting to engage in volunteering (although there needs to be recognition of the demand this can place on TSOs).
And some areas still need a greater focus: Support the third sector to enhance its ability to bring more money into the city via external funders to address the key priorities, including potential EU funding around social inclusion.
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Ensure that changes in commissioning arrangements are outcomes-led, with a strong focus on social value, and do not unintentionally undermine a thriving third sector. Support greater partnership working at the neighbourhood level and area level to ensure it is more effective. Through partnership arrangements, there are opportunities for the sector to be commissioned on a much more local level, linking in with local priorities through the Cluster partnerships and Community Committees. It is clear that this will become greater as the need for localised commissioning is more apparent, so this in turn will generate more opportunities, both to help shape local services and to be commissioned in the future. Encouraging a more effective interface between the private and third sectors. A greater willingness amongst the sector to collaborate and support each other. Strong robust infrastructure networks that both enable and facilitate opportunities for the sector, city-wide and locally, to be engaged in planning, shaping and delivery of services which address identified need. There is often a difference between the activities that third sector groups want to deliver on the ground and the things that commissioners want to fund.
These and new, emerging opportunities will be subject to discussion and debate at Third Sector Leeds and Third Sector Partnership meetings.
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SECTION 6: PORTFOLIO OF KEY DOCUMENTS AND POLICIES SHAPING THE THIRD SECTOR
APPENDIX 1 THE COMPACT for LEEDS CHARTER
The aim of this document is to agree a set of values and principles that govern the way people work together in Leeds. To see the full Charter, please go to the Doing Good Leeds website.
APPENDIX 2 LEEDS THIRD SECTOR AMBITION STATEMENT
The aim of this document is to set out the required framework to support a thriving third sector.
In addition to the Statement, there is a detailed Building Blocks Action Plan and a regular 6-month review of progess. To see these documents, please go the Doing Good Leeds website
APPENDIX 3 LEEDS CHARTER FOR SOCIAL VALUE
The Charter aims to set out the city partners’ commitment to promote social responsibility and social value and to make the maximum impact in Leeds with the Leeds pound.
To see a full copy of the Charter, together with suggestions as to what you can do to take the actions necessary to deliver the Leeds that we all want, please go to the Doing Good Leeds website
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APPENDIX 1: COMPACT FOR LEEDS CHARTER
The COMPACT for LEEDS CHARTER
A CHARTER to strengthen relationships between the public and the third sector in order to deliver the best possible outcomes for the people of Leeds.
Compact VALUES and UNDERSTANDING Everything that we do as partners is done for the benefit of the people of Leeds We share a commitment to the city ambitions We share a commitment to maintaining and developing a thriving third sector We recognise that we are interdependent and work together for mutual benefit We have to work within available resources that are linked to current priorities We accept our responsibility to make the partnerships that serve the city effective
Compact PRINCIPLES
Working Together Creating a Leeds where public and third sector partners work together to more effectively meet the needs and aspirations of the people of the city.
Involving Communities Creating a Leeds where partners work together to ensure that people have a voice that shapes decisions and makes a difference.
Sharing information Creating a Leeds where partners are open and share information and intelligence, so that everyone can make informed decisions in the interests of the people of the city.
Allocating Resources Creating a Leeds where partners work together within legislative and economic constraints to ensure that the funding available, the in-kind and other resources are used in the most effective way and are directed at the agreed priorities and needs of the people of Leeds.
Building Communities and Third Sector Capacity Creating a Leeds where partners work together to ensure that support is in place to help build communities so that they can take action together and contribute to the development of the City.
Promoting Volunteering Creating a Leeds where partners work together to ensure that formal and informal volunteering is encouraged, promoted, valued and recognised.
Promoting Equality, Fairness and Good Community Relations Creating a Leeds where partners work together to ensure that equality and fairness are at the heart of all decision-making and where conditions are created for good community relations in all parts of the city and across all communities.
The Compact CHARTER sets out the Values and Principles that public and third sector partners commit to as they work together to make Leeds the Best City for Public and Third Sector Relationships. The Compact for Leeds is a longer document that includes Partner Commitments and sets out some of the ways that the Compact Charter can be put into practice.
Compact for Leeds: not a set of rules, but a way of working
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APPENDIX 2 - LEEDS THIRD SECTOR AMBITION STATEMENT
City partners acknowledge that Leeds needs a thriving third sector able to rise to current challenges and opportunities and work alongside all partners to deliver the Best City ambitions. To enable this to happen, Leeds needs a culture that is creative and brave enough to embrace further new ways of doing business with the third sector. In order to achieve this new culture, a Third Sector Ambition Statement has been created to enable partners to understand what is meant by a ‘thriving third sector’.
The Statement: provides a general description of the type of third sector that Leeds needs and wants to invest in and nurture sets out ambitions in order to influence practice, and provides encouragement and clear expectations about doing business in new ways with the third sector
Leeds Third Sector Ambition Statement
The success of Leeds and the wellbeing of all of its citizens is dependent on having thriving private, public and third sectors, each independently successful but working effectively in partnership. The City’s ambition is to have a sustainable, diverse third sector economy, with organisations from the smallest self-help group through to larger, local and national service providers. The ambition is to use the Leeds pound to invest in a local infrastructure that has a legacy beyond the life of any single funding programme.
Leeds needs a third sector that is: . enterprising, responsive, sustainable, resilient, professional and civic minded . diverse in its activities and the size, type and governance of its organisations . inclusive, with extensive participation and broad reach into all neighbourhoods and communities . confident in its strong and mutually beneficial relationships with the public and private sector . driven by the needs and priorities of people and communities in Leeds . able to champion and advocate for citizens, communities and causes . led by local people . able to evidence outcomes and be recognised for quality delivery and impact
Leeds also needs: . a vibrant and active community and self-help sector operating at the grassroots level in local neighbourhoods and across communities of interest . an effective third sector support and development infrastructure that can help to grow the third sector that Leeds requires . the conditions that allow small, neighbourhood and community groups to emerge, develop and grow
A thriving and sustainable third sector will include: national and regional third sector organisations delivering in Leeds Leeds-based organisations able to compete for and win major contracts in Leeds and beyond local voluntary organisations: evolving to meet local needs, sustainable and flexible enough to respond to changing circumstances, with the potential to grow small voluntary, community and self-help groups, often volunteer-run, with low running costs and high impact
Leeds commits to create the conditions for a Thriving Third Sector that can play its role in the City
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A. BUILDING BLOCKS
In order to deliver the overall ambition of a thriving third sector in Leeds, a number of key building blocks have been identified;
BB1. Partners have a shared understanding of the impact of the third sector and the social and economic contribution that it makes to the City
BB2. City partners provide accessible information about priorities to support third sector planning
BB3. Policy and operating frameworks enable and encourage third sector participation, particularly in commissioning and engagement, and key strategic developments
BB4. The sector has a strong strategic voice and advocates well for local people
BB5. The third sector leads enterprise and innovation, securing and generating income, including investment from national and European funding sources
BB6. Individual and corporate giving grows with commitment to the impact of corporate social responsibility
BB7. More people volunteer
BB8. The City supports small local, community, minority and grassroots groups
BB9. The sector has high quality leadership at all levels
Under each of the above Building Blocks, key objectives have been identified, along with lead agencies and strategic partners. These have been brought together in the Building Blocks Action Plan. Within the plan, objectives are also split between those already underway and those that are yet to be progressed.
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APPENDIX 3 – LEEDS SOCIAL VALUE CHARTER
Leeds Social Value Charter
“Our vision is for Leeds to be a healthy, fair, compassionate and caring city where everyone benefits from the city’s economic growth. The success of Leeds is dependent on private, public and third sector partners that are individually enterprising and thriving, but who also work together, alongside active citizens and communities for their mutual benefit and for the good of the City.
We believe that all sectors and partners, and Leeds’ many and diverse communities, make important contributions to the success of the City, but real added value and benefit will be achieved and we will get the greatest possible social return from investment by promoting Social Responsibility, building Social Capital and delivering Social Value. This Charter sets out the guiding principles that will help us achieve this in Leeds.
Guiding Principles - The Leeds Approach:
Aim to add value and deliver long-term social, economic and environmental benefits in all that we do Work in partnership with others to ensure that we achieve the best outcomes for Leeds and everyone benefits from the success of the City Create employment and training opportunities for people in Leeds and be a good employer Grow and strengthen the local economy by Investing the Leeds pound in Leeds Be sustainable, fair and ethical in all that we do Recognise the added value that community led organisations bring to the City
We believe that by operating in line with these principles Leeds can: Become the Best City in the UK – being fair, open and welcoming, with an economy that is both prosperous and sustainable, supporting all our communities to be successful. Become a city of civic enterprise–with the Council being more enterprising and business, the third sector and other partners being more civic minded. Become a city where all our citizens, in all their diversity, are valued, active and involved and are helping shape the city for our current and future needs.
All Partners are encouraged to adopt the approach set out in this Charter.
If you support the ambitions set out in the Charter, you may want to encourage your own organisation to endorse the Charter and begin to explore how to put the idea into practice. If you do endorse the Charter we would like to hear from you. Please contact [email protected] in the first instance.
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