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Essex County Council - Provider Hub
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Market Context

There is no universal definition of the Voluntary and Community Sector (VCS) but organisations within it usually:

  • Operate for no financial gain
  • Are value-driven
  • Are independent

The sector is massively diverse and organisations within it vary in terms of their size, their purpose and their geography.  However, generally speaking all work toward improving the health and wellbeing of residents. Concentration of VCS organisations tend to be demand led, in response to local need.

According to The Structure, Dynamics and Impact of the Third Sector in Essex  the VCS in Essex is structured as below. This information is based on data held by the Charity Commission only and there is likely to be un-constituted groups that are not included:

Size

Micro (income below £10,000)

Small (£10,000 - £49,999)

Medium

(£50,000 - £249,999)

Large (£250,000 - £999,999)

Big (£1m - £25m)

Total

35.8%

32.3%

21.7%

7.5%

2.5%

4,976*

 

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Registered Charities

Community Incorporated Organisations

Community Interest Companies

Community Amateur Sports Clubs

Registered Societies

Total

73.8%

9.0%

9.2%

4.3%

3.8%

4,976*

 

IMD Distribution

Poorest

IMD 1-2

 

IMD 3-4

Intermediate

IMD 5-6

 

IMD 7-8

Richest

IMD 9-10

Total

8.0%

15.6%

22.7%

30.9%

22.7%

4,642*

*Number of organisations

Because of their local knowledge   and insight, quality service delivery and independent advocacy for their service users, the VCS is a key partner of the statutory sector working to support multiple ambitions across ECC and wider system.

The relationship between ECC and VCS organisations will generally fall into three camps:

  1. Commissioned services
  2. Grant funded projects
  3. Co-design and insight sharing

The annual National Council for Voluntary Organisations (NCVO) Almanac shares key insights into the health of the sector nationally and the 2023 report has three key takeaways to consider when working with VCS organisations:

  1. For the first time in a decade, overall sector income has declined
  2. Difficulties for small organisations highlight the uneven impact of the pandemic
  3. Overall volunteering levels remain lower than pre-pandemic levels

Team

Contract

Contract Value

Public Health

Reconnect

Core Funding to Citizens Advice

Essex Wellbeing Service -

£450,000 per annum

£120,000 per annum

£256,290 per annum

Personalisation, EH, Carers

Carers Core Offer

Carers Voice

 

£1,500,000 per annum

£101,727 per annum

Adults with disability

Vulnerable Victims service

Co-production grant

Part fund Autism Navigator service

£106,000 per annum

£99,000 per annum

£90,000 per annum

ECC is committed to investing in support for the VCS that enables them to:

  • Build capacity and resilience to meet their ambitions and address challenges both in the immediate and long term
  • Develop as a strong and valued partner in decision making spaces

ECC has commissioned expert providers to deliver a VCS Support programme, this includes digital business compliance and development support, increasing community participation, strengthening place-based networks and collaboration, developing supportive eco-systems at place and establishing a more strategic approach to funding and resources.

Internally ECC is working to strengthen connections between the Communities Team and Adult Social Care to ensure consistency in how we work with, listen to and support the VCS in Essex.  

The value and power of the VCS was highlighted during the Covid-19 pandemic with communities stepping up to support the most vulnerable and contribute to the vaccination efforts.

With public giving decreasing in the 20/21 year and smaller organisations being much less likely to receive government grant funding, compounded by the cost-of-living pressures, the impact of the pandemic has been uneven across the sector and has resulted in a decline in the number of smaller organisations nationally [NCVO Almanac].

Nationally, formal volunteering levels have not recovered to pre-pandemic levels and despite an early rise in informal volunteering this decreased to pre-pandemic levels by 21/22. Smaller organisations are particularly at risk as they tend to rely more heavily on volunteers.

Insight suggests there are three key areas that represent a risk to the strength of the sector:

  • Cost of living pressures affecting the ability for organisations to meet running costs which is compounded by increasing demand pressures on their services
  • Strict procurement processes with criteria that excludes smaller VCS organisations who lack the capacity, experience and/or skill to effectively bid for funding

Sector-wide difficulties with recruiting and retaining volunteers to support service

  1. A strong and resilient VCS able to respond effectively to challenges and support energy within communities to respond to challenges
  2. A strong and resilient VCS able to respond effectively to challenges and support energy within communities to respond to challenges
  3. An engaged and collaborative public sector (including VCS and Councils) that operates as equal partners, sharing insight and designing solutions
Last updated: 23/11/2021