Where is our reward? 

The Spring Statement and recent changes to employers’ National Insurance Contributions (eNICs) will have a significant impact on the voluntary sector in both Scotland and the UK. At a time when funding is insufficient and funding processes remain inefficient, governments at all levels keep on asking voluntary organisations to give more and do more.  

We all know that money is tight and that the years ahead will continue to be extremely challenging financially and otherwise. There is also no denying that the demands put on the sector are increasing and with that people’s lives and communities’ sustainability are at risk. But there are also many opportunities for innovation, learning and better partnership working. 

By including the sector in recent eNICs changes, one could argue that the UK Government sees the voluntary sector as a big employer, big enough in fact to contribute to economic growth. On the ground however it still too often feels like voluntary organisations are invisible or an afterthought when it comes to economic development for example. So, if we pay our share, can we also get a seat at the table? 

In numbers, the voluntary sector represents 136,000 employees in Scotland (5% of the Scottish workforce). This is equivalent to the size of the construction industry workforce. By creating jobs, organisations in the sector contribute to the economy and GDP. Importantly the sector also offers opportunities to individuals who may otherwise be faced with barriers to access employment, and increased likelihood of living in poverty; women make up 64.5% of the sector’s workforce, 37% of employees work part-time and 23% of employees have a disability, which is more than in the public and private sectors. The sector is also relying on a huge number of volunteers estimated to be worth £5.3 billion to Scotland’s economy.  

The coming months and years do not look bright to say the least. The political environment is volatile, inequalities are growing fast, and the climate emergency looms ever larger. Charities, social enterprises and community organisations have simultaneously never been more needed and never been more under threat. What would the economy look like without voluntary organisations? Is it worth finding out? 

Last week I submitted SCVO’s response to the Scottish Government’s Rural Delivery Plan, and the Community Wealth Building Bill was also introduced by Kate Forbes. The role of the voluntary sector in rural areas is crucial and organisations that support people and communities in these regions must be seen as key economic actors that will help Scotland achieve a green, inclusive and sustainable economy.  

That is true across the country as Anna Fowlie (SCVO), Victoria Carson (Wise Group) and Sara Thiam (Prosper) recently discussed in the latest episode of Prosper’s Prosperity Unlocked.  A focus on clear outcomes, partnerships and investment is needed. Otherwise, it is likely that in five years' time we will live in a country where slow economic growth, entrenched inequalities, and climate crises have become the norm, partly due to an inability and unwillingness to acknowledge the role of the voluntary sector in the economy. It is likely, but it is not inevitable.