Income from government forms a significant part (32%) of the voluntary sector’s total income
- Income from government includes income from any statutory body, including central government departments, local authorities, devolved and regional government, the EU and international governments, town and parish councils, NHS Trusts and a range of non-departmental public bodies (NDPBs).
- The income generally comes from the statutory authority direct to the voluntary organisation, but more complex relationships such as subcontracting, match funding and direct payments also occur.
- Although this income is significant for the voluntary sector, it accounts for only a small part of total government spending, around 2%.
The proportion of total voluntary sector income coming from government has decreased, from 34% to 32% since 2014/15
- Income from government decreased between 2014/15 and 2015/16, from £15.5bn to £15.3bn, after having increased over the previous two years.
- Income from government is now at the same level as it was in 2013/14.
- The longer-term trend since 2000/01 has been one of growth in government income until 2009/10, followed by decreases until 2012/13 (in line with the general reduction in government spending following the recession) and increases between 2012/13 and 2014/15.
- The proportion of total voluntary sector income coming from government has decreased, more sharply than in the previous few years and now accounts for less than a third of all income (32%).
- As in previous years, micro and small organisations receive small amounts and proportions of income from government (15%) whilst larger organisations receive more.
- In 2015/16, major organisations, with incomes of £10m to £100m, received the greatest amounts and proportions of income from government (£6.1bn, 40%).
By source: central or local government
Funding from central government has decreased while increasing for local government
- It is income from central government that has decreased over the last year, falling by £0.7bn from £7.4bn in 2014/15 to £6.7bn in 2015/16.
- This is in contrast to the increase in income from central government between 2012/13 and 2014/15. Before that, income from central government decreased between 2009/10 and 2012/13, following the recession and changes in public spending.
- Central government spending and funding does vary with the cycles of government spending reviews so this pattern of two years’ increase and one year decrease may be reflecting that cycle.
- Income from local government has increased since last year. In 2015/16 local government income is again greater than central government income, as was the case for the last decade apart from last year, 2014/15.
The social services subsector continues to receive the largest proportion of income from government (46%)
- Different subsectors attract different levels of funding from government. In 2015/16, organisations working in the social services subsector received the highest amount of government income (£4.9bn).
- Their funding from government nevertheless continues to decrease, down from £5bn in 2014/15 and from £5.5bn in 2009/10, before the large overall reductions in government funding.
- The employment and training subsector receives the highest proportion of its income from government (48%). Other subsectors receiving a high proportion of their funding from government income are social services (46%), playgroups and nurseries (44%) and law and advocacy (43%).
- Other subsectors receiving a high proportion of their funding from government income are social services (46%), playgroups and nurseries (44%) and law and advocacy (43%).
- Although the social services subsector attracted the largest reduction in the amount of government funding since 2009/10, the proportional reduction over that period (10%) was by no means the highest. Over the same period there was a 52% reduction in government income going to grant-making organisations (decreasing from £294m in 2009/10 to £263m in 2011/12 and £141m in 2015/16) and a 57% reduction for umbrella bodies (decreasing from £345m in 2009/10 to £148m in 2015/16).
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