HC Deb 22 December 1981 vol 15 cc863-5
15. Mr. Paul Dean

asked the Secretary of State for Social Services what representations he has received on the levels of funding by his Department to assist voluntary organisations in contributing to the health and personal social services.

Mrs. Chalker

The Department gives grants direct to more than 200 voluntary organisations. Representations often concern the details of funding but frequently give new ideas for schemes for volunteers and aid the development of new initiatives in the voluntary sector.

Mr. Dean

Does my hon. Friend agree that in many cases the money made available to voluntary organisations has substantially increased under the Conservative Government, but that unfortunately some local authorities have felt it necessary to reduce their grants? In view of the importance that the Government attach to voluntary effort, will they seek ways to make up the shortfall?

Mrs. Chalker

My hon. Friend is quite right. The level of funding by the Department has increased. This year we shall spend £8.5 million in grants to the voluntary sector. Like my hon. Friend, we are very unhappy when local authorities reduce grants to good voluntary organisations. I hope that any local authority considering that course of action will reject it. I hope that authorities will look particularly at the working document entitled "Working Together" published by the National Council for Voluntary Organisations. That document shows how effectively voluntary organisations working with local authorities can give a better and more humane service. They can also extend their services and give a better quality of life to all those whom the voluntary organisations so ably serve.

Mr. Alfred Morris

Is the hon. Lady aware that, due to the doubling of VAT, the Spastics Society, which had a very heavy deficit last year, will pay £300,000 in VAT this year? Can she give any help to the Spastics Society, the Royal National Institute for the Deaf, Mencap and the many other organisations that find themselves under severe financial strain? What representations are DHSS Ministers making to the Treasury?

Mrs. Chalker

I am well aware of the point that the right hon. Gentleman makes. Of course we are concerned about this matter. I assure him that many representations have been made about VAT paid by voluntary organisations. We hope shortly to be in a position to give some information on that.

Mr. Hal Miller

May I thank my hon. Friend for all her work in support of the document "Working Together"? May I draw her attention to the fact that, for instance, voluntarily run hostels, to help mentally handicapped children to return to society operate more efficiently and effectively, as well as more humanely, than local authority homes?

Mrs. Chalker

It is difficult to draw complete conclusions, but I appreciate what my hon. Friend has said. The important aspect in providing hostel accommodation and arranging for fostering is that we should harness all possible resources and ensure that where local authorities face particular challenges due to the numbers in their areas, and so on, they look to the tremendous value that voluntary bodies and volunteers offer in helping these people to attain a better quality of life.

Mr. Joseph Dean

It is interesting to note that the Minister seeks to lay some of the blame on local authorities for cutting grants to voluntary organisations. Is it not a fact that the grants had to be cut because of the severe cuts in rate support grant inflicted by the Government?

Mrs. Chalker

The hon. Gentleman knows full well that it is for local authorities to decide their spending priorities. He will note that many authorities throughout the country have benefited far more on a pound-for-pound basis by continuing their grants to voluntary organisations and cutting back on local authority bureaucracy. In that way, far better value for money is given to ratepayers.