NICVA welcomes £40m bailout for charities

Liam Byrne, Minister for the Cabinet Office, said:

"The best of the British spirit is the way we pull together when times are tough. And it's Britain's charities, voluntary groups and social enterprises that so often make that happen. We've been monitoring daily what's happening to donations and demands for new services, and with incredible support from the sector we're launching a lazer-targeted package of help with tens of millions extra for charities providing employment advice, mental health and family support services in the most deprived areas of England and Wales, plus millions extra to help those out of work start volunteering."

NICVA welcomes this move in response to the impact of the recession on charities and community organisations. It was reported that income generated by charities fell by 13% in the past year, according to a survey of 260 large charities in the UK.

Northern Ireland is following a similar pattern, according to the latest NICVA State of the Sector report, which is due to launch on 25 February. This report states that income streams to charities fell by 7.1% across Northern Ireland between 2003/4 and 2007/8, while in the same period debt held by charities increased by 11.4%. This situation is set to worsen however, as the economy is now in recession. Traditionally the recession bites later in the voluntary and community sector with a lag of 10 months to a year, so 2009/10 will be far more difficult.

Seamus McAleavey, chief executive of NICVA, today called on the First and deputy First Ministers to seriously consider a response that matches England and Wales.

He said:

"Gordon Brown recognises that demand for services from voluntary organisations increases in recession, particularly in the areas of advice services, debt counselling, social housing, mental health and helping unemployed people re-enter the labour market. This happens when organisations' resources are also taking a hit. The Northern Ireland Executive needs to consider a similar strategic response. We cannot simply wait until services break under the pressure."

For further comment or to set up an interview, please contact Caroline Magee on 028 9087 7777 or 077 2174 6805 or email caroline.magee@nicva.org