Broken commissioning threatens small charity survival

A new report has accused central and local government are using ‘complicated’ commissioning processes to secure vital public services, threatening small charities.

Published by the Lloyds Bank Foundation for England and Wales (LBFEW), the report reveals a system in crisis, leaving charities threatened with closure and the future of public services at risk.

Commissioning in Crisis drew on the experiences of small charities, finding regular subjection to poor scrutiny, penalisation for irrelevant requirements, and small charities being forced into unnecessary mergers.

The report recognises that commissioners themselves are under pressure operating with smaller budgets and fewer staff, but nonetheless reveals a system that routinely discriminates against small charities on the basis of their size, preventing them from competing fairly, leaving them deprived of funding or at the mercy of larger providers, many of which can behave unscrupulously.

Paul Streets, chief executive of LBFEW, said: “This report should be a real wake up call to commissioners of local public services. We are alarmed at the scale of the commissioning crisis which is engulfing small charities and threatening their very survival. Small charities are struggling to respond to bureaucratic, complex and inappropriate requests by commissioners.

“When it comes to commissioning services, it seems common sense has failed. It’s not just charities that stand to lose, but communities and individuals in need. We urge the government to redress this imbalance and change how services are commissioned so that small charities can compete fairly and continue to make a difference to individuals and communities.”