Scottish Parliament Pre-Budget Scrutiny 2025-26: Third sector funding principles
The Social Justice and Social Security Committee wanted to examine the action being taken to support the third sector after hearing continued concerns about funding challenges faced by the sector.
Increasing demand and wider economic issues have posed significant challenges for Scotland’s third sector—
- the COVID-19 pandemic led to greater demand for third sector services and support
- the impact of the cost of living crisis on household budgets has led to individuals and families seeking help when they did not need it before
- third sector organisations are spending more on their running costs as inflation has seen prices rise.
The report looks at these issues with a focus on how the Scottish Government’s approach to fair and efficient funding can contribute to the continued effectivenessof the third sector, incuding looking at Flexible Funding and Multi-Year Funding.
The report looks at a range of evidence incuding facts and figures and evidence/case studies from voluntary organisations.