A group of adults sitting in a group and having a discussion

WLGA highlights ‘unsustainable’ funding pressures

Published : 13/12/24 | Categories: Information & support | News |

A recent letter by WLGA has emphasised the need for urgent investment in social care by Welsh Government.

THE LETTER

The letter by WLGA noted escalating financial pressure on local authorities, stating:

‘The estimated pressure across local government services for 2025-26 is £559m – £38m higher than previously thought’.

Social services alone account for 45% of these anticipated pressures for the next year, equating to a £106m additional overspend.

These figures are alarming in terms of how these pressures will impact on people, communities and the voluntary sector. WCVA’s 2024 State of the Sector survey showed that 78% of organisations said service demand has increased, but 50% reported that they have not been able to meet this demand ‘fully’ or ‘at all’. 43% of organisations said none of their public contracts or grants covered the true cost of service delivery. Also, following rises in the National Living Wage and Employer National Insurance Contributions, 50% of organisations are considering using their charitable reserves, and 34% are considering reducing the number of full-time staff.

At present, the voluntary and statutory sectors require more money simply to maintain the same standards of service we already offer. Is there an opportunity here for us to face a crisis together and have frank discussions about how we help people sooner?

THE CASE FOR PREVENTION

Prevention is better than cure. The voluntary sector is here to deliver and meet needs in partnership, that word being key, with statutory health and social care services.

Statistics tell us that:

  • Over 12,000 Welsh-based voluntary sector organisations contribute to health and social care
  • These organisations employ nearly 59,000 people at 2,700 locations
  • Over 60,000 people volunteer in health and social care roles in Welsh charities alone
  • 17% of volunteers are engaged by the public sector
  • 938,000 people volunteer across all sectors in Wales per year
  • There are 584,134 unpaid adult carers in Wales. This contributes £8.1 billion annually to the Welsh economy

These numbers underscore the significant role the voluntary sector plays in supporting the health and social care landscape in Wales.

FRAMEWORK FOR VOLUNTEERING IN HEALTH AND SOCIAL CARE

Furthermore, during the development of the Framework for Volunteering in Health and Social Care, 90 organisations delivering health and social care were surveyed.

Findings revealed that:

  • 67% of them were from the charitable sector
  • 5% had experience of working with volunteers
  • 50% of the volunteers utilized by these organisations worked in social care. 34% worked in health care. The others worked information and advocacy
  • 30% of organisations said they officially operated in partnership with statutory health and care partners, but in practice it was more like just working alongside them. 26% said they just worked alongside the statutory sector, but there was no partnership agreement. 11% said they had no relationship with statutory providers at all

THE CASE FOR EARLY AND ONGOING DIALOGUE

These findings illustrate the need for more consistent and meaningful dialogue between the voluntary and statutory sectors. As Wales faces increasing funding pressures, it is crucial that we engage in conversations about how to better coordinate our efforts and deliver services effectively.

WCVA’s Health and Care Project is already facilitating this wherever we can, but we can’t do it all. The message about early and continuous dialogue must be heeded, whether the issue is new or closing services, changes in legislation or regulation, or funding shifts. The importance of ongoing dialogue cannot be overstated. Where funding is involved, all parties must be informed by the Code of Practice for Funding the Third Sector.

Failing to engage all parties in these conversations puts public services at risk and undermines key Welsh Government initiatives, such as the Future Generations Act, A Healthier Wales, and the upcoming Mental Health and Wellbeing Strategy.

By fostering continuous dialogue, we can identify potential duplication of services, deliver services co-productively, identify any method to improve cost-effectiveness, and more, with the aim of delivering the person-centred services that so many across Wales rely on.

FOR MORE INFORMATION

For further information, please visit the WCVA Health and Care Project page.

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