Magazine article Public Finance

Third Sector Public Service Provision Rises

Magazine article Public Finance

Third Sector Public Service Provision Rises

Article excerpt

Voluntary sector provision of public services has soared in recent years, according to research published this week.

A study by the Office for National Statistics showed that funding to charities to run public services grew from £8bn in 2000/01 to £L2.8bn in 2007/08, to account for 36% of their total income.

The increase far outpaced general growth in state spending. In 2007/08, the voluntary sector's income was 159% up on 2000/01, compared with 133% for total government public service expenditure.

Voluntary organisations providing services in employment and training, law and advocacy, education, housing and social services now receive at least half of dieir total income from the public purse. Half the funding from local government to charities went on social services.

Government contracts awarded to the voluntary sector have also increased. In 2007/08, almost 75% of the sector's public income came through contracts rather than grants, up from 58% in 2004/05. …

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