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WHO CARES ABOUT THE VOLUNTARY SECTOR?

Oluwaferanmi Adeyemo, Doctoral Researcher

Supervisors:

Elizabeth Sanderson, Senior Research Fellow

Peter Wells, Professor of Public Policy Analysis and Evaluation

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Aim:

Evaluate the state-voluntary sector relationship:

    • Labour Government (1997-2010)
    • Conservative-led Government (2010-2024)

Specific focus on:

    • Dominant public policy narratives (e.g. State-Sector Partnership, Big Society, Levelling Up)
    • Funding (e.g., Grants, EU funding, SPF, social investment, markets)
    • Focus of support (e.g. Capacity building) 
    • Contexts of crises and choice of response (2008 GFC vs Covid-19)

Comparison of the landscape in the UK with that of the US.

OUTLINE

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Why bother about the ideology of who cares about the Voluntary Sector?

Introduction

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Methodological Approach

Source: Adapted and extended from Alcock (2016) 

Year

Key Policy Changes

1997

Election of Labour Government (Tony Blair Government)

1998

Establishment of Compact to govern state and voluntary sector relations.

1999

Devolution of political power and policymaking (including voluntary sector) to devolved administration in Scotland, Wales, and Northern Ireland

2002

HM Treasury cross-cutting review recommending the investment in the voluntary sector.

2006

Creation of Office of the Third Sector (OTS) within Cabinet Office

2008/2009

Global Financial Crisis and Recession

2010

Formation of Conservative-led Coalition government, launch of Big Society and changing of OTS to Office for Civil Society (David Cameron government)

2011

Elections in devolved administrations lead to different political control

2012

Big Society discourse downplayed

2015

Election of Conservative-led government (David Cameron government)

2016-2019

Brexit Referendum (2016) and Election of Conservative (Boris Johnson government). 

2022

Levelling up White Paper  

2024

Election?

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THE 3 EPISODES OF STATE-VOLUNTARY SECTOR RELATIONSHIP

1997–2010

The Partnership Period

2010–2012

Big Society Agenda (libertarian paternalism)

2013 onwards

Relative silence on the voluntary sector marked by uncertainties

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  • Tony Blair and the Third Way Idea – neither state nor the market
    • Competitive tendering market
    • Proliferation of the voluntary sector in public service delivery
      • Funding – growth and scale of the VS
      • Key capacity building projects:
        • £150million ChangeUp programme – 2004
        • £215million Futurebuilders fund (2005-2008), extended from 2008-2018 (£90million)
        • £70million Communitybuilders fund
        • Stand-alone Adventure Capital Fund – later renamed Social Investment Business (SIB)

The Partnership Period: 1997-2010

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Funding: Income vs spending

Source: NCVO/TSRC, Charity Commission

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Share of income based on size

Source: NCVO/TSRC, Charity Commission

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Big Society Agenda (libertarian paternalism): 2010-2012

  • David Cameroon and his 'Hugo Young Lecture
    • Big Society as a solution to the UK’s broken society
    • Devolution of power – decentralisation and localism
    • Key Focus of Support – Big Society Bank and the ‘right to provide’ reform of the public sector

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However

  • The Big Society turn out to be less significant than the political rhetoric suggests
  • The honeymoon period of hyperactive mainstreaming of the sector became unsettled, especially within the context:
    • Austerity and budget cuts
    • A move away from partnership to co-production
  • State-sector relations moved from relational to more contractual driven by an econometric situation – outcome driven.
    • The ‘builders’ programmes were discontinued
    • Associated agencies like Capacity Builders and the Compact Commission were closed down.
    • The public service provision environment became more competitive rather than voluntary and community action

…Cont.…

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Relative silence on the voluntary sector marked by uncertainties: 2013 onwards

A decline in the policy reputation of the voluntary sector

    • Increased emphasis on intelligent commissioning and funding principles based on two directions - quality service provisions and cost containment (value for money).
  • ‘Levelling Up’ – new UK government mantra to address longstanding local and regional inequalities and, especially, to tackle the problems of ‘left-behind’ places.
    • Acknowledges the vital role of the sector, but no concrete funding plans and few policy proposals to deliver on its ambition.

In contrast

Sector-blind utilitarianism approach

    • The commissioning landscape from more plural and widespread to focusing on a small number of larger organisations referred to as parachuters, particularly from the private sector.
    • Greater emphasis on formal accountability and evaluation (usually in cost-benefit terms) – evidencing of what works.

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Context of Crises and choice of response

    • The UK experienced her first recession in 17 years and by some measures its worst one in 60 years (NIESR, 2009)
      • GFC spurred ad hoc policy cooperation across the European Union.
      • The Conservative era saw an enhanced movement towards the New Keynesianism agenda.
        • Modernisation of the welfare system and increasing embrace of the New Public Management or Government system

2008 Global Financial Crisis (GFC)

    • Rapid upswell of state support and involvement for the voluntary sector and voluntary action to reduce the impact of the pandemic and lockdown
    • Increase in partnership working and involvement of Local infrastructure organisations (ILOs) to coordinate responses with local government and VSOs
    • State support for the sector, e.g., £750million support package was announced by Chancellor Rishi Sunak on 8 April 2020
    • However, following the pandemic:
      • Reduction in the state-sector relationship and partnership working

2019 Covid19 pandemic

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Comparative examples: UK vs US�

The US service provision and nonprofit landscape is more state-driven and locally led

Federalism system of the political environment

More power and independence at the state and local level

Nonprofits are more independent and involved in the design and planning of public services

The UK landscape carries the orthodox narration of (localism), the landscape of public policy and funding is still very much centralised with little or less power or independence at the grassroots level

More fragmentation of service provision and funding, even more so with the UK Shared Prosperity Fund

Less accountability because of the policy environment operated in silos

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Conclusion

  • What, then, might be a more nuanced way to draw out the contentious ideological aspects of who cares about the voluntary sector as we look ahead to the next general election with a possible predicted change in government?
  • The key takeaway from the review we have made so far is that:
    • There is little evidence to suggest that the state (Labour or Conservative-led governments) cares about the voluntary sector as the sector is usually mainstreamed during the period of polycrisis based on the need to save or rebuild society.
    • Irrespective of who wins the forthcoming general elections, the UK may likely continue to witness:
    • More rolling back of the state from service provision and funding
    • More opening up of market forces and continuous competition for funding, a threat to the VS.
    • Continuous increase in demand for services (e.g., integrated mental health and employment support).

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Key References

  • Acheson, N. (2010). Welfare state reform, compacts and restructuring relations between the state and the voluntary sector: reflections on Northern Ireland’s experience. Voluntary Sector Review, 1(2), 175-192.
  • Acheson, N. (2010). Welfare state reform, compacts and restructuring relations between the state and the voluntary sector: reflections on Northern Ireland’s experience. Voluntary Sector Review, 1(2), 175-192. https://doi.org/10.1332/204080510X511238
  • Alcock, P., & Scott, D. (2002). "Eight: Partnerships with the voluntary sector: can Compacts work?". In Partnerships, New Labour and the governance of welfare. Bristol, UK: Policy Press. https://doi.org/10.51952/9781847425492.ch008
  • Alcock, P. (2012a). The Big Society: a new policy environment for the third sector? Working Paper. University of Birmingham, Birmingham.
  • Alcock, P. (2012b), New Policy Spaces: The Impact of Devolution on Third Sector Policy in the UK. Social Policy & Administration, 46: 219-238. https://doi.org/10.1111/j.1467-9515.2011.00832.x
  • Alcock, P., Kendall, J., & Parry, J. (2012). From the third sector to the Big Society: consensus or contention in the 2010 UK General Election? Voluntary Sector Review, 3(3), 347-363. https://doi.org/10.1332/204080512X658054
  • Alcock, P. (2012c). New Policy Spaces: The Impact of Devolution on Third Sector Policy in the UK. Social Policy & Administration, 46: 219-238. https://doi.org/10.1111/j.1467-9515.2011.00832.x
  • Alcock, P. (2016a). "Two: The history of third sector service delivery in the UK". In The Third Sector Delivering Public Services. Bristol, UK: Policy Press. https://doi.org/10.51952/9781447322412.ch002
  • Alcock, P. (2016b). From Partnership to the Big Society: The Third Sector Policy Regime in the UK. Nonprofit Policy Forum, 7(2), 95-116. https://doi.org/10.1515/npf-2015-0022
  • Bartlett, W., & Grand, J. L. (1993). The theory of quasi-markets. Quasi-markets and social policy, 13-34.
  • Giddens, A. (2013a). The third way: The renewal of social democracy. John Wiley & Sons.
  • Giddens, A. (2013b). The third way and its critics. John Wiley & Sons.
  • Cheng, Y. (2019). Exploring the role of nonprofits in public service provision: Moving from coproduction to cogovernance. Public Administration Review, 79(2), 203-214.
  • Rees, J., Taylor, R., & Damm, C. (2024). Opening the ‘black box’: Organisational Adaptation and Resistance to institutional isomorphism in a prime-led employment services programme. Public Policy and Administration, 39(1), 106-124. https://doi.org/10.1177/09520767221118490
  • Stephen P. Osborne & Kate McLaughlin (2002) Trends and Issues in the Implementation of Local ‘Voluntary Sector Compacts’ in England, Public Money & Management, 22:1, 55-64. https://doi.org/10.1111/1467-9302.00297
  • Tomaney, J. and Pike, A. (2020), Levelling Up?. The Political Quarterly, 91: 43-48. https://doi.org/10.1111/1467-923X.12834

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DISCUSSIONS AND QUESTIONS?

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