Executive calls for urgent Government action on community sector funding crisis

The Stormont Executive has called for “urgent action” from the UK Government to address a funding crisis facing the community and voluntary sector in Northern Ireland.

In a joint statement, the ministers in the powersharing Executive called on Northern Ireland Secretary Hilary Benn to “ensure the Local Growth Fund receives a realistic resource allocation immediately”.

The UK Shared Prosperity Fund (UKSPF) will be replaced by the Local Growth Fund on April 1.

In 2023, EU funding to charities and community groups in Northern Ireland from its European Social Fund (ESF) was ended because of Brexit.

It was replaced by the UKSPF which will in turn be replaced by the Local Growth Fund.

That new fund has a 70/30 capital-to-revenue split, resulting in funding cuts to the voluntary and community sector.

This has led to warnings of service cuts and job losses within the sector.

On Monday, trade union Unison said the Northern Ireland Assembly needed to take “immediate and decisive action”.

But Executive ministers said they had been raising concerns for many months, including with Prime Minister Sir Keir Starmer.

A statement said: “We understand the depth of anger and frustration across the voluntary and community sector because these services are lifelines for many individuals and communities locally and the current position is neither sustainable nor fair.

“We have been raising these concerns for many months, including directly with the Prime Minister.

“We also wrote to the Secretary of State for Housing, Communities and Local Government, Steve Reed, urging him to act as a matter of urgency to address the current funding constraints and provide a more appropriate resource allocation.

“We made clear the serious consequences these decisions are having. It is therefore deeply disappointing that, to date, this has not been met with the level of response or engagement required.”

The statement had been discussed multiple times at Executive meetings, including last week.

It added: “We continue to engage with the voluntary and community sector and believe there is still time for the Secretary of State to protect and ensure that the highly valued organisations within it can continue to deliver interventions that support people and drive economic growth.

“With one voice, we continue to urge the Secretary of State to ensure the Local Growth Fund receives a realistic resource allocation immediately.

“The Executive stands firmly with those calling for a fair and sustainable funding position and we will continue to make that case in the strongest possible terms.”

A UK Government spokesperson said: “Under the new Local Growth Fund, Northern Ireland will receive £45.5 million in each of the next three years, the same as it received under the previous fund in 2025/26.

“This new funding is on top of a record £19.3 billion annual funding settlement announced for Northern Ireland last May.

“It is also additional to the £370 million announced at the Budget and the further £379 million in resource funding announced by the Chancellor on Tuesday March 3.

“It is for the Executive to determine how this money is allocated.

“UK Government ministers have been engaging extensively with the community and voluntary sector, and also seeking to work with the Northern Ireland Executive to provide organisations with the clarity they need to plan for the coming year.”