My Lords, I am genuinely humbled to be introducing this debate, given the unparalleled collective wisdom that I see across the House among all those taking part today. That is why I am delighted that we gather to acknowledge and celebrate the indispensable role of charities in our nations. I look forward to the maiden speech of the noble Baroness, Lady Porter of Fulwood.
Charities are indeed the backbone of our society: they are on the front line wherever things are in crisis in our communities. From the riots in the summer to the pandemic to the devastating cost-of-living pressures still being experienced across the country, charities are there for people at the worst of times. However, charities are also there for things that make life better and communities richer. They build bridges; they bring people together where there is division; and they are deeply trusted, often where the state is not.
I am delighted to share, hot off the press, figures from the National Council for Voluntary Organisations’ annual voluntary sector almanac. This shows the size and shape of the sector and provides rich data to understand the trends and challenges that are being experienced. The latest data published only last week shows that, in 2021-22, we had 166,000 voluntary organisations across the UK, and a striking eight out of 10 of these were small charities with income below £100,000. These organisations provide essential services, from health and social care to homelessness, and we will hear so much more about that today. While some services receive government funding, let us remember that many do not.
Charities strengthen our communities by engaging volunteers and creating spaces for connection. They are led by volunteers, who give their time and skills as trustees, and many are entirely volunteer run. Moreover, they amplify the voices of the marginalised, ensuring that they are heard by decision-makers. It is such a key role for the sector. Last year—we will hear more about this this afternoon—the Association of Medical Research Charities invested £1.7 billion in UK research. It has contributed much more than money to the sector, supporting R&D that focuses on patients, accelerates impacts and addresses areas of unmet need.
Charities play a crucial role in our economy, as everyone knows. They develop skills in communities, supporting people back to work and providing opportunity to young people. As organisations, charities are major employers, running businesses with a social purpose. Charities contribute an estimated £20 billion per year—or 1% of GDP—to the economy. That is very impressive. Andy Haldane, former chief economist of the Bank of England and now chief executive of the Royal Society of Arts, has estimated that, when the impact of volunteering is accounted for, this contribution increases tenfold to £200 billion, which looks like 10% of GDP. In 2024, the sector employed 3% of the UK’s workforce, and the sector’s workforce has grown by 30% since 2011. Believe it or not, charities employ more people than all the major supermarkets put together.
My Lords, I thank the noble Baroness, Lady Morgan of Drefelin, for securing this important debate and for her excellent introduction on the—as she said, indispensable—contribution of the voluntary sector. I declare my interests as set out in the register; in particular, as chief executive of a voluntary sector organisation, Cerebral Palsy Scotland. The work that we do supports people with CP, their families, the NHS and education and social care services. It seems, however, that too many people think that we can do this for free.
This sector is not voluntary. As the noble Baroness said, it employs around 1 million people, the majority of whom work for smaller organisations with fewer than 50 employees, which will all be struggling with yesterday’s announcements regarding increased employer NI contributions and an inflation-busting 6.7% increase to the living wage. According to the SCVO’s Scottish Third Sector Tracker, Scotland’s voluntary sector is facing unprecedented challenges. We have had years of warm words and promises of multi-year funding from the Scottish Government, which have yet to be fulfilled. Crises such as the pandemic and increased costs of goods and utilities have all put the sector under increasing pressure. As costs for organisations have risen, so too has demand for services. The sector is in crisis, and many organisations are having to close their doors.
Headway is the UK-wide charity that works to improve life after brain injury. Key information and vital services provided by local Headway charities have propped up statutory services but, now that financial pressures are accumulating from all sides, this has become unsustainable. Over the last two years, four local Headway charities have had to close their doors—three volunteer-led branches have also closed—leaving many vulnerable brain injury survivors and their families with no support. Three more are scheduled to close in the next couple of months. The strain placed on families as survivors can no longer access specialist daycare services will be unsustainable. Many will not cope, leading to family breakdown due to family carers becoming unable to meet their loved ones’ needs that previously were met by Headway services, and unable to access respite care.
My Lords, I congratulate the noble Baroness on securing this debate. It is easy to see that NCVO continues to be in great hands. The number of speakers today is testament to both the importance of the subject and the wide range of experience in this House. I am sure we have all been impressed by the many briefings that we have received, which show the sector in all its diversity. The recent praise for the sector from both Keir Starmer and Lisa Nandy has been very good to hear, as was their commitment to resetting the relationship. Hopefully, the days of government telling charities that their deeply held views are somehow woke and undesirable are behind us.
One of the problems with getting to my age is the constant sense of déjà vu—covenants, compacts, big society and so on—and how few lessons are ever learned from what has happened in the past. I am a member of the advisory board of the Institute for Volunteering Research at the University of East Anglia, and I can point the Minister and her team to some excellent analysis of what works and what does not, when it comes to the relationship between government and the sector.
There is not time today to go into why this relationship can be so problematic, but it is like that popular book from the early 1990s: Governments are from Mars and charities are from Venus. Charities have their own specific purposes, which do not always dovetail with the conventional way that government like to do things. Nowhere can you see this better than in commissioning. There is a body of advice available to government on making procurement practices really work for this sector and on the need for sustainable funding models, but it is too often ignored. NCVO reports that 84% of the organisations it surveyed reported that their grants and contracts had not covered their costs since 2020.
Community Action Suffolk, the county’s infrastructure body where I live, reported that 65% of respondents were oversubscribed and underfunded on projects for which they receive statutory funding. It seems to me that this is based on the myth that charities have a bottomless pool of volunteers on which they can draw and that it is somehow free labour—and that funding will always be met by an endless stream of philanthropy. Of course, none of the above is true. Volunteers need to be recruited, trained and managed, and, in an ideal world, we should meet some of their basic costs, such as bus fares. In any event, as we have heard, volunteering is in decline. Many people are working longer hours, older people are undertaking childcare duties and some cannot afford the basic costs of volunteering.
My Lords, I too thank the noble Baroness, Lady Morgan of Drefelin, for tabling this debate. I draw noble Lords’ attention to my registered interests: I am chair of trustees for the Duke of Edinburgh’s Award, president of the Local Government Association and chair of Sport Wales.
Voluntary organisations and community groups are the backbone of social and economic provisions across the United Kingdom. In 2021, the voluntary sector injected £17.8 billion into the economy and employed nearly 1 million people, making up 3% of our national workforce. But there are many challenges for volunteering, which is an important part of the sector.
Youth Employment UK have said that the volunteering participation rate among 11 to 30 year-olds has reduced from 24% in 2023 to 17% in 2024. As more young people become socially isolated, more sedentary and resultingly more vulnerable to physical and mental health issues, I am particularly worried about the impact on young women. Girlguiding’s Girls’ Attitudes Survey 2024 has shown that the number of young girls who feel unsafe due to sexism has doubled over the past decade; it has gone from 17% to 47%. That is just one organisation that helps young women volunteer.
Organisations such as the Duke of Edinburgh’s Award continue to champion youth volunteers because we recognise the profound impact that volunteering has on young people. Overall, more than 545,000 young people across the UK are currently working towards a DoE award. Participants gave 4,725,825 hours of volunteering in their communities. This is equivalent to over £24 million in paid working hours. Young people come from a variety of backgrounds; among last year’s participants, 15.2% were experiencing poverty, 26.7% were from ethnic minority backgrounds and 7.8% had additional needs. It is important that volunteering opportunities are open to everyone.
My Lords, I thank the noble Baroness for bringing this timely debate to your Lordships’ House and I look forward to the maiden speech of the noble Baroness, Lady Porter.
I recently had the privilege of attending the North East Charity Awards. I wish I could highlight all the inspiring charities and individuals featured but, for the sake of time, I will limit myself to two. The North East Young Dads and Lads Project is a support service dedicated to helping young men and fathers play an active and meaningful role in the lives of their children and wider society. The project works with them to build a greater sense of self-worth and resilience, reducing social isolation and challenging negative perceptions. Smart Works Newcastle helps unemployed women with clothing and coaching into employment, transforming their lives. Some 69% of clients gain employment within one month. These are small, local north-east charities that understand the needs of their communities and make a tangible impact. It is so often the small charities with personal relationships that can most effectively bring about lasting change in people’s lives.
When it comes to funding, 85% of charitable income in England and Wales goes to just 4% of registered charities, with small charities often struggling to raise the funds they need. What steps are the Government taking to rebalance charitable funding and ensure adequate investment in smaller charities that possess a deeper understanding of their communities?
I must also recognise the work that local churches and faith communities do to serve their communities. In Newcastle, the cathedral plays a vital role in responding to prison leavers, those seeking asylum, those sleeping rough and those struggling with drug and alcohol misuse within the city. What steps are the Government taking to support the work of faith groups in their communities?
My Lords, I thank the noble Baroness, Lady Morgan, for securing this important debate. I declare my interest as a trustee of Teach First.
This debate, coming as it does one day after the Budget, could not be more timely. Yesterday, we heard a passionate, well-reasoned argument on the vital role of the state: where it can intervene, where it makes a difference, where it can change lives—and rightly so. Yet Governments themselves are the first to acknowledge the limits of the state. However well intentioned, it has those limits. We have long understood that overcollectivist economies are deeply flawed, not least as inhibitors of growth. However, this country has also seen and indeed lost faith in the alternative too, namely that what we cannot achieve collectively as a state we will achieve as individuals. The state withdraws; the free market does it all. Were we not told once:
“There is no such thing as society”?
Yet in each case, profound social ills continue, while expectations of services are in danger of outgrowing our ability to fund them. We know that between the overinterventionist state and the minimalist state lies the most potent force of all, found in localities, voluntary associations and faith groups: the force of community. It is in communities that we find—indeed learn—the virtues that sustain the common good: integrity, compassion, neighbourliness. These are the kind of virtues that both state and market are too impersonal—at times too arbitrary—to nurture. It is in communities that we find shared belonging.
For that reason and more, I, like other noble Lords, welcome the Government’s creation of a civil society covenant, a new era of partnership that will help to tackle some of the country’s biggest challenges. The very concept of covenant, as used in this instance by the Government, is inspired. That is not just semantics, for covenant is at the heart of a community’s power. Most economic and indeed many political relationships are by no means covenantal. They are, as we all know, contractual; they assume a coming together of broadly self-interested parties that benefit from an exchange. Contractual relationships are transactional.
My Lords, I begin, as others have done, by congratulating the noble Baroness, Lady Morgan, on initiating this debate. Apart from being a highly effective Minister in the last Labour Government, she has for many years skilfully led Breast Cancer Now. Her work has undoubtedly saved many lives and raised awareness of this awful disease.
I also declare my interest as a co-director of Place, working for Business in the Community, a role I share with the noble Baroness, Lady Valentine—I am told, the oldest job-share in the UK. We are the UK’s largest and most influential responsible business network dedicated to building a fairer, more sustainable world. We work in the UK’s most deprived communities, mobilising leading figures from FTSE 100 companies to transform the lives and opportunities of millions. Led by our inspirational CEO, Mary Macleod, we aim to operate in 50 places by 2032, focusing on literacy, training, food poverty, upskilling and capacity building. Our business-led boards focus on physical regeneration projects like housing and transport.
However, we are one small part of the eco-structure of the 166,000-plus voluntary organisations identified by the NCVO. Although a major charity in NCVO terms, we have fewer than 250 staff. In a “bang for buck” ratio, our impact, like that of other voluntary organisations, is immense. The sector is estimated to contribute nearly £18 billion to the economy and employs, roughly speaking, a million people but mobilises over 14 million a year as volunteers. Our impact is unquantifiable.
Without the voluntary sector, community cohesion, the drive for social justice, economic fairness and greater equality would have long ago withered. We campaign, provide life-saving services, change lives, and shape opportunities. Our research changes perceptions.
However, we should not kid ourselves that everything in the voluntary sector is rosy or that we could not do better. Worryingly, there are signs that our work and impact may be faltering. A recent DCMS survey found that participation rates in formal volunteering have fallen. The NCVO too found a significant drop-off. Most concerning is the decline in young people volunteering, down 7% in 2024.
My Lords, at a time when our country is facing challenges on so many fronts, the unique role of your Lordships’ House is more important than ever. It is a privilege to be joining at such a critical time.
I have appreciated so much already the collegiality and warmth of this place. I would like to especially thank those who have made my introduction to this House so smooth—Black Rod and her team, and the doorkeepers. I would also like to thank the clerks, as well as my noble friends Lady Vere of Norbiton and Lord Johnson of Lainston, who supported me at my introduction, and my mentor, my noble friend Lady Wyld, all of whom have given me valuable advice.
Like others in your Lordships’ House, I have spent many years working in government across various departments as an adviser. I have been privileged to serve in Defra, the Cabinet Office, the Department for Transport, the Ministry of Justice and No. 10. I have also worked in business at the heart of the City, helping countries and companies from around the world raise capital and advising some of the world’s largest public and private businesses on their corporate reputation. During the Brexit years, I saw first hand the value of this House when I was working at the London Stock Exchange Group, and we were navigating many detailed, complex regulatory changes. The tireless work of so many here was invaluable.
I am very aware that life is not just—in fact, not even primarily—about formal institutions, whether Parliament or the City of London. As a mother of young children with no extended family living nearby, the invisible mesh of mutual support and care from others in my community is what makes life possible. We all know this, and during Covid it was the glue that held the country together. It takes all these elements: business, politics, media, community and family. We are at our best as a country when these parts understand each other and work well together. They are, though, too often siloed and at cross-purposes. This House has a special role to play in its ability to offer a dialogue between our country’s formal and informal institutions, and to foster and build the social capital that our future depends on as a country.
20 of 59 shown
Charities raise funds from diverse sources, including philanthropy, social enterprise and innovative partnerships with businesses. In 2021-22, the sector generated £69.1 billion, with the public contributing an amazing 48% through donations, legacies and trading activities in charity shops. Notably, according to the UK Giving report, some of the least affluent areas are the most generous—it is such an impressive observation. Government funding accounted for 26% of the sector’s income in 2021-22—down, I am afraid, from 30% in previous years—and this is part of a long-term decline in government funding to the sector. I very much hope that this might be about to change.
As the Prime Minister said at the launch of a new civil society covenant earlier this month, charities are innovative and dynamic. They are, indeed, resilient. However, crisis upon crisis, experienced by many charities, means they are struggling. More people than ever are turning to charities for the support that they cannot get elsewhere. According to the latest VCSE barometer from the Pro Bono Economics observatory, most charities expect demand to rise for their services. One in three charities do not expect to be able to meet this demand, which is very concerning.
I believe that, with the right focus, we have the opportunity to create a better environment, where voluntary action can thrive, especially in deprived areas where the impact can be so great. There are three main areas on which I want to quickly focus, because I know we have so much to talk about today.
First is the relationship that the sector has with local and national government. Charities and volunteering are essential, as we know, for building a healthy, resilient society, yet the relationship between the voluntary sector and government has become truly strained in recent years. This is especially true for the vast majority of charities that are small, local and heavily reliant on local government support—support that has been continuously cut over recent years. Despite these challenges, 61% of the public believe that Britain would be a better place if charities and community groups had a stronger voice in decision-making. Initiatives such as the VCSE accord in Greater Manchester show what is possible when civil society and public bodies collaborate effectively together, but these successes need to be more widespread, and there is huge potential for that.
NCVO and the Association of Chief Executives of Voluntary Organisations are effectively working together to change the dynamic with government, and I know that the Minister will want to say more about that. Following the publication of their Voluntary Sector Manifesto, they are engaging directly with government to reset the relationship with civil society. On 17 October, I was delighted to hear, a ministerial round table and a reception hosted by the Prime Minister in Number 10 kicked off the development of this new civil society covenant—a vital opportunity to redefine how we all work together. NCVO and ACEVO are engaging with civil society to bring them in and help shape the covenant, including charities and voluntary organisations, particularly including those small organisations I have talked about. The new covenant has a real chance to build meaningful, long-term partnerships for social change. That is what it is all about. For this to succeed, both government and civil society must commit to collaboration, ensuring that charities can continue their mission while helping shape a more equitable, engaged society.
The second area that I think is worth focusing on briefly is how the voluntary sector is indispensable to public services. It delivers nearly £17 billion in services each year, reaching people often left out of mainstream systems. Charities bring innovative, efficient solutions across health, social care, housing, the environment and education, meeting essential needs, often where government services fall short. Yet austerity measures have cut deeply into local and departmental budgets—we know that. Many charities are now subsidising public services out of their own limited funds. According to NCVO’s March 2024 research, 72%—a striking number—are starting to step away from public service delivery, with more than one in 10 forced to return contracts before they are completed, despite serious financial and legal consequences for the organisation.
The Government’s redrafting of the national procurement policy statement, which underpins the Procurement Act 2023, is a vital opportunity to emphasise the inherent social value that charities create. The policy statement has the opportunity to clarify that commissioners must account for this social value and reinvest the surplus in innovation and service delivery, where possible. There should be recognition that charities typically do not operate in markets in any conventional sense of that phrase.
Thirdly and finally, I want to say something about volunteering. I can see that everyone around this Chamber has some experience of volunteering; I know the incredible work that that noble Lords do to promote the sector. Volunteering, as everyone here knows, plays a vital part in our society and our economy. The evidence shows that around 14.2 million people volunteered in the UK through a group, club or organisation in 2021; many more volunteered informally. The ONS calculated that, in 2012, frequent formal volunteering produced around £24 billion of economic output, or 1.5% of GDP. That is pretty amazing. If occasional and informal volunteering had been included, that figure would have been much greater.
People give their time to their communities and to the causes that they care about in diverse ways. Volunteers for the RNLI save lives at sea. People in hospitals provide social connection. Governors support the strategic direction and sustainability in schools. Breast Cancer Now campaigners champion access to modern treatments. Volunteers run over 160,000 charities across the country, with 1 million people serving as trustees. Volunteers play a vital role in supporting our communities, delivering public services and building social cohesion. Eight in 10 volunteers give their time in their local area—what a feeling of community this has the opportunity to develop. Volunteering brings significant benefits to individuals, communities and society. It supports positive social, mental and physical health and well-being. It helps to develop skills, knowledge and experience, sometimes serving as a stepping stone into employment. It helps people to build social connections and capital, fostering that sense of community that we all know matters so much. When asked why they volunteer, people say—there are no surprises here—that the most common motivation is the desire to make a difference.
However, fewer people are volunteering now, particularly in formal roles, and this decline in volunteering is particularly challenging for smaller organisations. There are many barriers to volunteering today, which need to be addressed. People living in deprived areas find it more difficult than others to volunteer. Disabled volunteers and people from the global majority are less satisfied than other volunteers, so there is much that we could do there. Younger people are more likely to cite financial issues as a barrier. I therefore support calls for the uplift in the approved mileage allowance payments scheme, which would allow volunteers using their cars to be reimbursed to reduce that financial burden. I also support calls to broaden Section 50 of the Employment Act 1996 to give trustees reasonable time off to carry out their duties, similar to the current provisions for magistrates and school councillors. These ideas could help address the challenge in recruiting trustees, as there are currently 100,000 trustee vacancies and 62% of people who volunteered in the last three years say they could be encouraged to take part in volunteering again. We should look at that huge potential.
In closing, I am extremely honoured to be the president of NCVO, and I take on that role following the incredible contribution of my noble friend Lady Pitkeathley, who is in her place today. I acknowledge the incredible work that she has done. NCVO supports campaigns, such as Volunteers’ Week and the Big Help Out, and celebrates volunteers, encouraging people to get involved. NCVO regularly brings together those involved in the sector to support volunteers across the country, and it is one of the partners of Vision for Volunteering, a 10-year collaborative project to create a better future for volunteering.
I am looking forward to hearing the contributions from across the House and to learning a great deal from the noble Lords speaking today. I also look forward very much to hearing the contribution of the Minister, who I know is very thoughtful on these matters. I beg to move.
Small and medium-sized charities such as Headway are the most likely to close. Charities with an income of under £1 million each year accounted for over 97% of charity closures for each of the last 10 years. As these organisations have seen diminished statutory funding over the years, a decline in meaningful corporate support and not enough philanthropists, they have become over-reliant on funding from trusts and foundations.
However, in recent months, several large and well-known funders, such as the Foyle Foundation and the Schroder Charity Trust, have closed applications and are spending down their funds. Others, such as the Henry Smith Charity and the Tudor Trust, have changed their priorities. Their motivation is often rationalised by pointing out that they receive many more applications than they can fund, and how few of these can be successful.
The sector is facing a perfect storm, and I am deeply concerned about what the future looks like for many, many charities. We face a situation where organisations are closing due to cash flow, not based on their impact. This will affect beneficiaries as well as essential public services. NPC, which the noble Baroness referred to, estimated recently that charities prop up state services by £2.4 billion a year. These organisations are key partners and it is about time we treated them as such. When will there be recognition that this sector is not voluntary, it is essential?
There are a few things government can do, as we have just heard from the noble Baroness, such as enabling more employer-supported volunteering. However, one of the lessons of the past is that top-down initiatives —snazzy apps and so on—simply do not provide results. The fact is that volunteering is an expression of an individual choice to give your time to something that you value; it is not really under the direction of the state.
Larger charities do have a bit more in the way of resource to recruit and manage volunteers, but we know that 77% of organisations have an income of under £100,000 a year and 47% have under £10,000 a year. I want to end with a plea for local infrastructure bodies such as Community Action Suffolk, where I was a trustee. They provide advice and support to hundreds of community-based voluntary organisations: everything from trustee recruitment and training, volunteer portals, a directory of funding opportunities and help with IT, DBS and charity commission compliance. We have heard a lot about investment and infrastructure, so let us not forget our social infrastructure.
The Local Government Association’s 2010 Hidden Talents report, which is still valid, shows how volunteering helps build the confidence of young people, instilling in them invaluable interpersonal skills that they may not receive in the classroom. Whether it is volunteering at a sports club, helping in a charity shop or even shopping for an elderly neighbour, these experiences foster real-world interactions that are so evidently lacking in a world that revolves around technology. I know my own personal experience of volunteering had a huge impact on my life. When I was an athlete, all my coaches were volunteers; I could not have done what I did as an athlete without them.
Local authorities are under huge pressure and we must find ways to strengthen the relationship that they have with other organisations. Without cohesion and support, these organisations cannot close service gaps within communities, nor will they be able to provide adequate assistance to the most vulnerable in our society.
Finally, while I welcome the Government’s introduction of the new Civil Society Covenant Framework, I urge the Minister to maintain continuous dialogue and co-ordination with the devolved Governments. In order to achieve the full, positive impact of this covenant, it is essential that it resonates across all nations within the United Kingdom.
I expect there will be more to say on this in the forthcoming Budget debate, as the noble Baroness, Lady Fraser of Craigmaddie, alluded to in her excellent speech. For now, I welcome the Government’s recently announced civil society covenant and the emphasis that it places on partnership. So much can be gained from government and civil society working together, but we must also ensure that it is a constructive partnership, as the noble Baroness, Lady Morgan of Drefelin, mentioned in her opening speech, not one where the work of the voluntary and charity sector becomes a substitute for effective government policy.
The value of the community and voluntary sector across the UK cannot be overestimated nor taken for granted. It is the glue that fills in the gaps in our society, and I am glad that this House is recognising this today.
Covenantal relationships, as found in communities and voluntary organisations, are not transactional at all. They are about common good; they foster trust, reciprocity, loyalty. Economists of course call this social capital. We have seen that without the features of social capital—such as mutual help, compassion and kindness—societies break down. Such social capital is not created by isolated individuals or remote mechanisms of state, but by the strength of community networks and the bonds of volunteerism. Societies rich in social capital, with strong, inclusive communities and vibrant voluntary organisations, will have high morale, a strong sense of belonging and greater cohesion.
We are blessed in the UK to find these ties up and down the land. I personally have experienced their impact particularly strongly in my faith community. The Jewish community, of which I am proud to be a part, through its multiple voluntary organisations and its care for the vulnerable aims to be a community of dignity and purpose, and in so doing helps make Britain a better, stronger society. As we have just heard, it is so often in faith communities that we help others, and they help us, without calculating relative advantage. As the late Lord Jonathan Sacks, former Chief Rabbi, whose eloquence hovers across this Chamber, has written:
“The virtues of the common good are found not where people are brought together by exchange of wealth or power, but by a commitment to one another and to a larger common cause”.
For the foreseeable future we will be beset by social problems which will yield neither to state intervention nor to private initiative. This is indeed the moment for a partnership to be forged between politicians, communities, voluntary organisations, churches, entrepreneurs and others. Underpinning it all is a vision of society where we can bring our diverse talents and traditions as gifts to the common good.
Like others, I welcome the Prime Minister’s announcement of a fundamental reset. His aim to unlock and harness the sector’s dynamism, innovation and trust is timely. The covenant framework, incorporating high-level principles of recognition, partnership and participation is most welcome, and I applaud the desire to engage across government.
The strength of voluntary organisations is, as others have said, our ability to be different, to innovate and to challenge. These strengths have been sorely tested over the last 14 years, as government has looked to us to solve its problems. Too often, we have been seen as a cheap option or substitute for government intervention.
Lisa Nandy was right when she said that we should be recognised as a “trusted partner” but, to fulfil that role, we must find ways to collaborate better, maximise our impact, and acknowledge that there is overlap and duplication. As a quid pro quo, we need long-term funding commitments from central government and our local and regional partners. UK businesses, like BITC’s partner, Aviva, could be better incentivised to support communities.
Finally, as a piece of advice to the Government, while there is no free money on offer to fund initiatives, there are dormant assets. Gordon Brown’s scheme was given a boost by the last Labour Government, but it barely scratches the surface in unlocking assets tucked away in the banking, insurance and financial systems that could provide billions for social purposes. Will the Minister urge the Government to reconvene the commission that examined options for expanding the scheme? There is an estimated £800 million coming through the new scheme, and it could fund the community wealth fund that provides essential services for long-term investment. There are other funds that could be tapped from dormant assets: £1 billion in unclaimed gift cards; £3 billion in Amazon gift cards; and Sadiq Khan estimated there is a quarter of a billion pounds in balances on Oyster cards. Unused assets like these could be unleashed to transform the lives of millions of people across the UK and unlock the real potential of our civic institutions.
It is this that brings me to today’s debate. One area where we need to focus in coming months where this is especially true is criminal justice. This country has roughly 90,000 people locked up—almost double the number of people who were in prison when I was born, just over 40 years ago. Anyone who has been involved with criminal justice will tell you the same stories of heartbreaking, layered problems: gangs; drug abuse; mental health issues; a lack of mentors or family figure role models; children growing up who barely stood a chance. They will also tell you stories of transformation, where the practical commitment of a volunteer, or the deep care of a family member, has been the key to someone finding the strength to turn their life around.
Circumstances are forcing our hand on prisons. We should not look for quick fixes for this crisis but rather far-reaching reform. As the Government respond to this practical imperative, they need to use this moment as a jumping-off point for a proper rethink of how we approach criminal justice and the role of prison more generally. The part that community and the voluntary sector plays in this must be at the heart of this reform. Charities are able to provide a level of personal support and resource that government simply cannot. The charities Clean Slate Solutions and Recruitment Junction are both great examples of this, helping people who have been in prison adjust when they get out.
I started by referencing the breadth and scale of the challenges the UK faces. These are serious times. They are also times that require us to take a look at how we have been doing things and think anew. I look forward to working with other noble Lords who are focused on these issues to bring about lasting change.