Alcohol treatment services – the future for the voluntary & community sector? Sally Scriminger, CEO 29 November 2010

sector’s contribution to addiction services  psychosocial counselling  group work  mutual aid

profile of the sector  140k general charities  55k social enterprises  4500 co-ops  1800 housing associations  11 million members  est. 500k active local groups (unregistered)  94% have turnover < £500k p.a.  c. 600 alcohol treatment providers

profile of the sector In London:  c.50,000 voluntary & community sector organisations  250k employees (7% of London’s working population)  Contributes est. £18bn to London’s GDP

providers of public services  37% charities receive income from stat sources (£13.5 bn p.a.)  public sector major source of income for many  delivering 7% public sector services  estimated rise to 12.5% by 2015  many smaller providers unable/unwilling to compete for contracts.

what the sector brings:  value-led for public benefit.  independent voice  local community networks & partnerships  authentic & distinctive voice for service users  engagement of volunteers  freedom to experiment  responsiveness to change.  skills & expertise of voluntary trustees  charitable funds  2nd tier organisations

the evidence base Organisation Therapist service user

what is it about an agency which can support enhanced outcomes?  managerial style  organisational culture  values  passion  size “…..organisational growth may well erode the ability of large organisations to offer the added value which made them attractive service providers in the first place” Billis & Glenister, “Human Services and the Voluntary Sector: Towards a Theory of Comparative Advantage” 1998

“like the supermarkets who have driven many small traders to the wall, big charities are crowding out small, innovative community-based bodies whose thinking and practice is often more closely in touch with public opinion” “According to NCVO there now seems to be an established trend towards the concentration of income in the very richest charities. The voluntary sector appears to be undergoing “Tescoisation” with a small minority of larger charities becoming ever more dominant”

challenges for the sector  impact of competition  core focus & priorities  pressure on costs  growth of large national providers  growing complexity of financial management  increased levels of financial risk  managing constant change  staff retention & morale  who is the “customer”?  philanthropy

challenges for the sector  increase in service opportunities  government expectations of “Big Society”  £890bn public sector debt  payment by results

Audit Commission recommendations “ Local Public Bodies should: ….. develop their financial management information systems to enable them to assess the value for money they secure from different providers and to assess the impact of their commissioning practice on the voluntary sector”. “Assess the impact of their commissioning practice on the size and diversity of their local supplier base, and the consequent prospects of securing improved value for money” 2007 Audit Commission “Hearts & Minds – Commissioning from the Voluntary Sector”

the future for the voluntary & community sector?  major transition  contribution of voluntary sector: –service provider –partner –agent for change  impact of growth?  economic & political context  Big Society?  shape of the sector in 10 years time?