Open letter from the voluntary and community sector to the UK Government and NI Executive on the Local Growth Fund

Last updated
29 January, 2026

Open letter to Steve Reed MP, Secretary of State for Housing, Communities and Local Government; Hilary Benn MP, Secretary of State for Northern Ireland; Michelle O’Neill MLA, First Minister and Emma Little-Pengelly MLA, Deputy First Minister of Northern Ireland.

Shortsighted Cuts Will Devastate People, Prosperity and Ambition 

The UK Government’s decision to impose a 64% funding cut to programmes tackling economic inactivity across Northern Ireland is devastating. This decision will dismantle vital community-based services, putting up to 400 jobs at risk and this year alone leave at least 11,000 vulnerable people without the support they rely on.

Northern Ireland already has the highest economic inactivity rate in the UK (26.5%), driven by disability, ill health, caring responsibilities, and high numbers of young people not in education, employment, or training. For years, community-led programmes, most recently funded through the UK Shared Prosperity Fund, have helped people gain skills, move into work and reduce pressure on health and other key public services. These programmes work. They change lives.

They support those furthest from the labour market to build confidence, develop skills, and secure sustainable employment. They are a critical part of our public service infrastructure and an economic enabler, supporting local businesses big and small, and strengthening our economy.

Yet, from April 2026, with the introduction of the Local Growth Fund the UK Government funding for these services will plummet from £25 million per year to £9.2 million.

This is because of a 70/30 capital-to-revenue split, raising serious concerns about fairness, consistency, and the rationale behind decisions about this region.

For years, community-led programmes, most recently funded through the UK Shared Prosperity Fund, have helped people gain skills, move into work and reduce pressure on health and other key public services. These programmes work. They change lives.

When the Local Growth Fund was announced, the UK Government committed to designing a bespoke programme that reflected local needs and priorities. There was also a commitment that the funding will be allocated more flexibly to ensure that the full amount of funding is tailored to our unique circumstances. From the outset, our sector, along with the Executive, has been unequivocal: a capital-heavy programme is not what Northern Ireland needs. Investment should prioritise people and frontline services, not bricks and mortar at the expense of human potential.

This decision is not what was promised, nor what our communities should accept. Whether it’s a young person seeking their first opportunity, someone re-entering the workforce after illness, or a young adult with learning difficulties, people deserve support – and our economy depends on it.

A cut of this scale will dismantle programme capacity, create operational instability, trigger staff losses, and leave those already at the margins with no viable alternatives. We call on YOU to immediately:

  • Reverse this unjust allocation model.
  • Protect existing services through 2026/27 to allow planning and service continuity for participants.
  • Commit to genuinely co-designed and sustainable funding that reflects Northern Ireland’s needs. Northern Ireland cannot wait.

All decision-makers need to honour their commitments and prevent irreversible harm to our social and economic fabric.

Our support for 11,000 people each year – people who rely on tailored, community-based support to move closer to employment, education and stability – is a public service that needs to be protected.

At this critical moment, we need political courage to make long-term, responsible economic decisions that protect jobs now, safeguard future employment, and secure a stronger, fairer Northern Ireland.

 

Signed,

Celine McStravick, NICVA

Alex Leslie, AdaptNI CIC

Alison Blayney, Kilcooley Women’s Centre

Andrea Brown, Disability Action NI

Anne McVicker, Women’s Resource & Development Agency

Cara Cash-Marley, Orchardville Society

Charles Lamberton, TRIAX -Success NW

Charlie Fisher, Development Trusts NI

Chris Alexander, Triangle Housing Association

Colin Jess, Social Enterprise NI

Danny McQuillan, Start 360

David Babington, Action Mental Health

Diane Hill, Include Youth

Donal McKinney, USDT

Dr Martin McMullan, Youth Action Northern Ireland

Edyth Dunlop, NI Union Of Supported Employment

Elaine Armstrong, Cedar Foundation Head Office

Elaine Leonard, The Appleby Trust

Fiona Greene, NIACRO

Gary McKay, Impact Training

Georgina Grieve, Network Personnel & The Workspace Group

Grainne Close, Mencap in Northern Ireland

Helen Crickard, Reclaim the Agenda

Jacinta Linden, Bolster Community

Janet Schofield, Compass Advocacy Network

Joanne Kinnear, Ashton Community Trust

Kate Clifford, Rural Community Network

Laura Murphy-Sloan, AdaptNI

Laura Steele, Access Employment Ltd

Leslie Ann Scott, Extern

Liam Devine, Clanrye Group Ltd

Louise Coyle, NIRWN

Lynn Carvill, WOMEN’STEC

Maeve Monaghan, Now Group

Mark Dougan, The King’s Trust

Michael McGoldrick, First Steps Women's Centre

Natalie Corbett, NIYF

Paula Jennings MBE, Stepping Stones NI

Sharon Didrichsen, Specialisterne NI

Siobhan O’Neill, Mental Health Champion

Stephen Dallas, The Bytes Project

Susan Russam MBE, GEMS Northern Ireland

Valerie McConville, CO3 - Chief Officers 3rd Sector

Dr Julie Anderson, The Royal College of Psychiatrists

Shauna
O'Neill
Communications Manager