Agenda item

Corporate review of VCS and Financial Vulnerability grants - key decision

Joint report of Corporate Director for Residents Services and Director for Procurement and Commissioning

Minutes:

Louise Graham, Voluntary and Community Sector Partnerships Manager, presented the report, and stated the following:

 

a)  the report details a revised approach to grants to the Voluntary and Community Sector (VCS), when the current arrangements end in March 2023, through:

 

·  Area Based Grants (ABG);

·  Communities of Identity Grants;

·  Specialist Grants;

·  Financial Vulnerability Grant.

 

b)  the grants total £2,262,672, made up of £1,528,672 from the general fund and £734,000 from the public health grant;

 

c)  a corporate review of the focus of the current grants has been undertaken with the Voluntary and Community Sector and external funders and, following that it is proposed that a one-year extension to the current arrangements be made, with refreshed priorities for the VCS grants for 2023/24;

 

d)  the extension will provide some continuity to providers whilst the review is undertaken and, in addition, a small allocation from the budget is proposed to enable a new piece of work to co-produce a new model for 2024/25;

 

e)  the review is framed around the Council’s overall strategic framework of prevention and early intervention. For example, during 2023, a new 0-25s Early Help offer will be developed, setting clear foundations upon which our statutory duties will be set. Furthermore, a review of our neighbourhood model is being undertaken, and further partnership work on Health and Well-Being themes will progress, all requiring integrated partnership approaches. The VCS can play a vital role to early intervention;

 

f)  the proposal is subject to revised budget agreements through the current corporate budget process and, following the conclusion of this process it will be necessary to review the public health grant contribution to ensure it remains a proportionate and eligible use of this ring fenced grant;

 

g)  some of the funding is also used in part as match funding for a European Social Fund grant, although no guarantees as to the level of the match have been made beyond April 2023.

 

Resolved to

 

(1)  note the findings and outcomes of the corporate review in relation to the Council’s allocation and management of grants, as detailed in appendix 1 to the report;

 

(2)  approve the extension of the current arrangements (subject to budget level being agreed through the Councils current budget process) with the following principles:

 

(i)  a minimum reduction to the Financial Vulnerability Grant;

 

(ii)  refreshed principles for ABG grants proposed to:

 

-  focus on open access universal service provision for children and young people;

 

-  provide training for staff and support for volunteering ensuring quality provision and safeguarding;

 

-  continue locally accessible job clubs and jobs fairs to support peopleinto work/training or into better employment opportunities;

 

-  lead organisations for ABG and Communities of Identity Grants to provide services/advice relating to management and governance, applying for funding, managing finances, training and volunteering;

 

-  support for the delivery of anticipatory health and well-being activity to help prevent or delay people coming into adult social care support and reduce escalation (subject to sufficient budget);

 

(3)  agree to the principle of seeking a lead organisation to enable the co-production of a new VCS Grants model for 2024/25 (allocating approximately £30k), with a focus on:

 

(i)  prevention and early intervention;

 

(ii)  maximising opportunities for the VCS to source funding from external sources with an emphasis on seeking match funding in any new model;

 

(iii)  the consideration that any proposed model will fit with existing and developing Council strategy and strategic approach to prevention and early intervention, (e.g. geographical and themed models that will work best alongside broader City work on potential family hubs / neighbourhood models);

 

(iv)  strengthened outcomes framework that provides assurance of impact to the Council but is felt to be proportionate by the VCS.

 

(4)  approve consolidation of the four current grant programmes into a single VCS grant budget, sitting with a single budget holder from April 2023.

 

Reasons for recommendations

 

In 2012 Nottingham first developed the geographical and thematic partnership programmes of Area Based and Communities of Identity Grants. Prior to this, arrangements had not been reviewed for 10 years. The current round of agreements with providers comes to an end in March 2023.

 

A commissioning review by a corporate working group has been undertaken during 2022. The grant providing support for externally delivered financial support and advice was also included in this review. The review asked both internal and external stakeholders to consider which priorities should be supported and identify the preferred delivery model.

 

The total budget allocated is £2.26m.

 

This review has included consultation with the current grant funded organisations, the wider Voluntary and Community Sector, internal key stakeholders, external funders and other local authorities to understand other approaches to VCS grants. The results of this review identified the following priorities for the future direction of the allocation of grants:

 

·  Continued support for the financially vulnerable including the provision of welfare rights and benefits advice, as well as those newly affected by the cost of living crisis;

 

·  Delivering universal provision for children and young people as well as support for training of staff and volunteers, ensuring quality provision and safeguarding of all participants;

 

·  Support for the provision of locally accessible job clubs and job fairs to help people into employment and training. These should also support people already in work with better employment opportunities as we move from match funding from European Social Fund to Shared Prosperity Fund sources;

 

·  Help support the sector through the provision of services relating to management and governance, applying for funding, managing finances, training and volunteering;

 

·  Support for the delivery of anticipatory health and well-being activity to help prevent or delay people coming into adult social care support and reduce escalation (subject to sufficient budget).

 

(See Appendices 1 ‘Grants Presentation’ and 3 ‘Grants Survey Summary’)

 

This proposal ensures that grants are responsive to the current context of the cost of living crisis and pressures on social care for 2023/24 and that time and creativity for a future model from 2024/25 can be developed. National and local thinking about how people can be better supported in the community, supporting a sustainable Voluntary and Community Sector in the City, and building the important relationship of the VCS within current approaches to tackle health inequalities through prevention and early intervention are all key elements to a future model.

 

This work has been undertaken as a corporate endeavour supported by departments which are directly affected by funded VCS activity and will be directed by colleagues from all areas affected by these funding streams.

 

Services provided through this funding must feed into both existing and developing Council strategy and policy (eg providers of universal youth and play services should contribute to the Early Help Strategy currently being developed).

 

As the Council makes or adopts changes to strategic frameworks in the future, the VCS, through this funding, must support the implementation of such changes.

 

A co-production approach to the future model should be led by the sector, capitalising on the reach and trust with communities and seeking collective use of resources to maximise impact. The Council will work alongside the sector, providing data on need and supporting the setting of priorities. This will support development of options that consider how best to tailor resources and approaches with a best value lens.

 

An appropriate performance management framework for the future model should also be co-produced. This will need to provide assurance of impact to the Council, feel proportionate to the sector, and be able to demonstrate longer-term benefits to citizens. There may be opportunities to make changes to broader commissioned services, where there is duplication with provision through the grants.

 

(See Appendices 1 ’Grants Presentation’ and 4 ‘Grants Market Intelligence’)

 

Other options considered

 

There have been three headline options considered to support these recommendations. Options are dependent on the current budget process.

 

Option 1 is to keep the current arrangements in place as they are for future years, however as outlined in the report there is an opportunity to redesign the model for the commissioning and allocation of grants to improve the benefits derived for the local communities and therefore this option is not recommended.

 

Option 2 is to cease the grants altogether from the Council’s approach to supporting communities.  However, there is considerable value in maintaining a grants programme to support the council’s strategic approach of engaging with and enabling communities in way that leads to early intervention and supports improved outcomes.

 

Option 3 is to remodel the approach to the commissioning of grants in way that is co-produced with the voluntary and community sector and to align this with the council’s strategic approach to engaging with and enabling communities.  It is to be noted that the total value of the budget to be set for this would follow the budget setting process of the council.  This is the preferred and recommended option.

Supporting documents: