Peter LewisChief ExecutiveLondon Voluntary Service Council

The recession and London’s VCS

London Advice Conference15.10.2009

London’s VCS

An estimated 60,000 organisations

26,634 registered as charities

Employing around 250,000 people – 6 - 7% of

London’s working population

Approx. 5000 social businesses

LVSC

• Set up to tackle poverty, inequality and poor health of Londoners

• Centenary next year• New strategy, same challenges

– Policy, support, training– Knowledge, best practice, impact

Big Squeeze impetusMessages from national organisations notresonating in London

Needed to better understand impact on Londoners and VCS serving them

Desire to tackle the recession on the frontfoot, and present a positive VCS

Who responded?

104 London–based VCS groups:

• 40% local organisations (one borough)

• 41% pan-London

• 16% sub-regional (more than one

borough)

• 4% national, but London based

Who funds these groups?

25% - Local Authorities

19% - London-foundations (e.g. City Parochial)

18% - national foundations (e.g. BLF)

11% - regional statutory agencies (e.g. London Councils)

11% - national statutory bodies (e.g. CLG, Home Office)

9% - Primary Care Trusts

4% - private/corporate sector

3% - other

Is the recession affecting the communities you work with?

Yes - 95%

Has your workload increased due to the recession?

Yes - 71%

Are you confident you will be able to meet increases in

demand now and in the future? No - 80%

Is your organisation already taking action to help survive

a

recession? Yes - 78%

Headline survey results

VCS active in seeking solutions

Increasing number of cheaper / free services

Prioritising core services

Recruiting and investing in more volunteers

Reviewing existing services, looking for efficiencies

Stopping final salary schemes for all new employees

Freezing wages, reducing working hours

Sectors with immediate impact

• Advice• Volunteering• Employment support

LVSC experiencePEACe helpline

Redundancy and restructure calls rose by 100%

Variation of contract advice sought

Psychological impact

- increased anxiety amongst client groups – heating bills; threat of redundancy (UBS)

- more people dropping in for support- Increased needs for counselling services

(FORWARD)

• “less motivated because they don’t think they will get a job anyway”

Raising VCS profile & influence

Economic Recovery Action Plan“at this time the public sector should reaffirm itscommitment to the VCS which helps to provide vitallocal services” (Boris Johnson)

Working with London Funders “We’re in it together” Feb 09

Commitment to renegotiate from London CouncilsRe-stated at VSF conference

Catalyst for other recession work- Debt Summit; local initiatives

Renewed activity this autumn

Future challengesMarginalised becoming more marginalised

Public spending cuts 5-10% over next 5 years

London’s poverty profile changing already

Unknown depth of this recession

Lag in impacts on the sector:unemployment; mental health; debt and advice needs

Commissioning

Pressures to collaborate more and merge (CLACs)

Change in government

Questions to consider

• How did the advice sector respond to the recession? What would it do differently next time?

• Has the government’s Third Sector Action worked? Lessons for the future

• Is the relationship between specialist and generic advice provision working? What could be improved?

• How best can LVSC support the advice sector?

Final thoughts

• Open dialogue with partners• Focus not just on outputs but

impact • Stronger together• Maintain focus on core mission

Thank you

Your feedback:

Peter@lvsc.org.uk

Policy@lvsc.org.uk