Third Sector Funding Pressures

Questions to the Deputy Minister and Chief Whip – in the Senedd on 26 March 2019.

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Photo of Lynne Neagle Lynne Neagle Labour

(Translated)

2. What assessment has the Deputy Minister made of the funding pressures facing the third sector in Wales? OAQ53688

Photo of Jane Hutt Jane Hutt Labour 2:45, 26 March 2019

I thank Lynne Neagle for that question. Financial sustainability remains a key issue in the current financial climate. This remains one of the four pillars of our infrastructure support for the third sector via Third Sector Support Wales.

Photo of Lynne Neagle Lynne Neagle Labour

Thank you, Deputy Minister. One of the clear themes that has emerged for me in recent committee inquiries has been that local authorities and health boards are increasingly relying on third sector organisations to deliver services but are often not providing sustainable funding for those services. This has been the case in the children's committee's inquiries on perinatal mental health, on the emotional and mental health of children and young people, and in the health committee's recent inquiry on suicide prevention. Given that relatively little funding is distributed centrally by Welsh Government to the third sector, what more can the Welsh Government do to ensure that regional partnership boards and public services boards work fully in partnership with the third sector, but crucially provide them with the essential funding that they need?

Photo of Jane Hutt Jane Hutt Labour 2:46, 26 March 2019

It's very helpful, again, to have that evidence that has come to your committee, but I'm sure also in your constituency capacity as well. Welsh Government and the third sector recognise the challenges that public services face, and that has had an impact in terms of the third sector expectations, increasing public funding under continuing pressure. In fact, the First Minister and I attended the Gofod3 event last week. It was attended by hundreds of volunteers and third sector organisations, and we took part in discussions on the future of civil society in Wales and looked at the whole issue in terms of sustainability and funding. And it's very clear that, because it's a key pillar of our third sector, via our Third Sector Support Wales, we need to support organisations. They are diversifying their income streams, they're increasing their financial sustainability, but also it's crucial that local authorities and, indeed, the county voluntary councils work with the third sector organisations at a local level. But, just to say, the total contribution to the funding provided to the third sector support in Wales for 2018-19 is over £6 billion.