London VCS cuts

LVSC has been updating a working document on the cuts to London's voluntary and community sector (VCS)'s funding since April 2010. The document can be used to analyse VCS funding from a national, London-wide and local borough perspective, or according to service users or areas.

London VCS funding report: Latest January 2012 update now available

LVSC VCS funding report: January 2012 update ( a working document)

Interim analysis of the latest update suggests that:

Inequality and levels of poverty continue to increase in London.
The Government's benefit reforms will have a disproportionately negative impact on the income of the poorest Londoners compared with those living in the rest of the UK and, with Londoners who earn more.
Children & young people's and advice / legal / advocacy VCS services continue to be the services most evidently affected by the current funding cuts in the capital.

In terms of VCS organisations themselves:

London VCS organisations are more dependent upon public sector funding than VCS organisations in the UK in general, and have seen significant decreases in public sector contract funding since 2008.
Average cuts to public sector funding of London's VCS organisations are estimated to be between 9.9% and 26%, with an estimated loss of public sector funding for the VCS across the capital of between £19m and £41m, so far in 2011-12.
On average for 2011-12, local borough VCS spending cuts were twice as high as average local authority cuts and for Councils for Voluntary Service the average percentage cut was three times higher across London.

This suggests VCS organisations are enduring disproportionate public sector cuts compared with London local authorities, contrary to current Best Value Duty Guidance..

Last update

The July 2011 update (which contains information on funding cuts in 2010-11) is available to download below:

London VCS funding (working document): July 2011 update

These working documents are not intended to be comprehensive but to provide a relatively up-to-date snapshot of the impact of funding changes on VCS organisations and the people they work with in the capital.