This report describes some of the ways the Voluntary and Community Sector (VCS) has been responding to the challenge of the Cost-of-Living crisis, focusing on the early part of 2023. It draws out insights, knowledge and practical ideas to help inform future preparedness and response to an ongoing crisis that will escalate again as Winter approaches
The research in this report aims to:
Provide the VCS with examples and case studies that have worked in addressing needs within the complex challenges posed by the crisis.
Add to the evidence on the scale of need and support required to assist funders, policy and decision-makers. In particular, to highlight how pre-planning and preparedness — done well and with sufficient resources — supports the resilience of people, communities and organisations.
How has the voluntary and community sector responded to the crisis?
FUEL POVERTY
The issue of fuel poverty has seen a level of innovation, such as distributing items to keep people warm and re-purposing community assets, like buildings, into "warm spaces" for the most vulnerable. This approach has led to a wave of new families who may not have sought help before at a time when organisations struggled to cope to meet the needs of people who usually accessed services.
FOOD INSECURITY
Addressing food insecurity remains a paramount concern for the voluntary sector. The response to addressing food insecurity varied from providing prepared meals to distributing groceries and vouchers and offering skills training to foster self-sufficiency. The sector moved beyond food banks to find sustainable longer-term solutions.
MENTAL HEALTH
With the crisis redirecting funds from leisure activities to basic needs like “heating and eating”, the sector responded by creating social opportunities for people whose well-being has been impacted by isolation. Mental health was seen as a critical need, especially with the stress and anxiety brought on by financial precarity.
PUBLIC HEALTH
The voluntary sector has long been a source of information, advice, and guidance for those in need. Communities continue to rely on these trusted organisations to navigate the cost-of-living crisis. In addition to direct support, these organisations continue to share knowledge and insights, including resources for their own financial challenges. They played a crucial role in conveying community needs to the public sector as the crisis reshaped the landscape of necessity.
FINANCIAL
The crisis has hit organisations in the sector hard financially. Increased costs for essentials like energy, rent, food, and fuel have strained budgets. Smaller organisations have struggled to survive.
WORKFORCE CHALLENGES
Staff and volunteers are leaving due to financial constraints, making recruitment and retention difficult. Those who remain are also grappling with the cost-of-living crisis.
PARTNERSHIPS
Existing partnerships were accelerated, and new approaches emerged during the crisis. While it strained relationships, it highlighted their value for efficiency and effectiveness.
STRATEGIC ROLE
The sector possesses valuable insights into community needs and crisis management. It's well-positioned to contribute to long-term solutions for the cost-of-living crisis, which appears chronic.
Conclusion: Despite challenges, the sector has made positive impacts during tough times. Financial constraints may limit operations, but innovations and partnerships have shown potential. With support and investment, the sector can continue leading in community service amidst growing social, climate, and economic challenges.
What would be the most effective way to ensure that VCS organisations were sufficiently well-resourced during crises to be able to play the full and active response role as envisaged under the UK Resilience Framework?
What would a robust strategic approach to the funding of the VCS look like if it were to ensure long-term investment in the capacity and capability of the VCS to prepare for and respond to emergencies?
What leadership development for those working in the VCS would enable them to ensure their organisations operated effectively in the (to some) unfamiliar world of resilience and emergency response?
How might we respond as a society to the well-being and mental health impact of traumatic events, particularly when they affect large numbers of people and/or particular communities?
What further investment is needed to release more of the potential brought to preparedness and response by volunteers?
What is the best way for the VCS and Local Authorities to maintain or reestablish ways of working formed during the pandemic, where the VCS was fully embedded in key processes and its value recognised?
What forms and levels of funding create the most favourable conditions for collaborations - such as investment in infrastructure to develop partnerships and maintain the health of local, regional, and national networks?
How might the VCS, the public sector, funders, and policy and decision-makers develop a joint long-term strategy to address the cost-of-living crisis?
