Volunteer Scotland Statement: UK Government Budget

We have, however, identified three relevant points which could have a considerable indirect impact on volunteering in Scotland and warrant further discussion:

1. Awarding the Scottish Government an additional £3.4 billion is, of course, welcome. We in the third sector have been at the sharp end of the challenging fiscal environment faced by the Scottish Government in recent years. This was demonstrated in many of the responses to the Social Justice and Social Security Committee’s recent inquiry into Third Sector Funding Principles including our own. As such, any potential additional income for the delivery of public services, including those delivered by the third sector with the support of volunteers, is appreciated. We now urge the Scottish Government to invest a portion of this additional spend in the many vital services provided by the third sector and volunteers, often focused on early intervention or prevention.
   
   
2. The increase in employer National Insurance contributions to 15%, if applied to organisations in the third sector, will undoubtedly add pressure when many are already stretched to breaking point. Our colleagues in SCVO contributed to an open letter with infrastructure bodies across the UK before the budget was announced warning of the potential impact of this move on the third sector. We would add that the effects of this additional strain on the finances of organisations will undoubtedly filter down to volunteers. It could further deplete dedicated resource for ensuring positive volunteering experiences, and it may even lead to increased expectations on volunteers if organisations are forced to cut their number of paid staff. These potential cumulative effects are at odds with the principles of the Volunteer Charter. As such, we reiterate the call made in the open letter above for the government to ensure that the additional NI contributions are reimbursed for the 3rd sector.
   
   
3. Finally, the plans related to welfare spending are cause for some concern and potentially perpetuate some of the damaging stereotypes regarding people in receipt of benefits. Referring to people as ‘economically inactive’ and calling the white paper ‘Get Britain Working’ infers that people in receipt of benefits do not contribute and are an economic drain. However many people who are not able to work contribute a great deal to their communities through volunteering, as demonstrated in the 2022 Scottish Household Survey In fact, in a report published in 2021, we found that volunteers who don’t work because they are ‘permanently sick or disabled’ contribute considerably more hours on average than individuals who are employed either full or part time (9.12 hours per four weeks compared with 7.36 hours and 6.84 hours per four weeks respectively). Volunteering is worth £5.3 billion to Scotland’s economy and the economic contribution of all volunteers, particularly those not in work, should be acknowledged.
   

   
   Participation in volunteering is also hugely beneficial for people seeking work and those unable to work due to long term health conditions or disabilities. It often improves the physical and mental health of participants, as well as building confidence and developing a range of important skills. Despite this, many volunteers are nervous about volunteering because of how it might affect their benefit entitlement, particularly if they are required to undertake Work Capability Assessments. Whilst the commitment to reform Work Capability Assessments is therefore cautiously welcomed (our recommendations regarding this can be found in this consultation response), the plan to recoup £4.3 billion a year by reducing benefit fraud needs to managed very carefully. The vast majority of benefit claimants do not commit benefit fraud, with the rate of benefit overpayments due to fraud sitting at 2.8%. The actions of so few cannot lead to the return of a more authoritarian benefits regime which could perpetuate existing fears about participating in volunteering.

 
These observations represent our initial thoughts regarding the Chancellors budget. There is likely more to unpack and discuss with our many stakeholders, particularly the Volunteering Action Plan’s Policy Champions Network. We look forward to working with partner organisations, and representatives from both the UK and Scottish governments, in ensuring that these budget commitments actively promote volunteer participation in Scotland, rather than adding to existing barriers.