The VCSE sector plays an important role in employability
provision, delivering integrated, specialist services that
providers in other sectors will not or cannot deliver. However,
reduced funding and increased demand has led to a protracted period
of significant instability for the sector.
Many organisations have responded to these pressures
proactively. However, there is a serious danger that the more VCSE
organisations focus on revenue generation, the more they will lose
the distinctive characteristics which make them effective
providers. Most concerning of all is the evidence of VCSE
organisations closing or scaling back services, leading to greater
levels of unmet need.