County Council to consider future of discretionary grants

Proposals to end discretionary grant funding to voluntary and community groups is a matter set to be considered by Derbyshire County Council.

It follows a public consultation where 1,374 people filled in a paper or online questionnaire, with a further 120 people attending meetings or library drop-in sessions, to have their say on the plans.

Cabinet, which meets on Thursday 14th November, will hear that the council has chosen to fund voluntary organisations with annual grants for up to 20 years and over this time has experienced growing financial pressures beyond its control.

This includes higher than anticipated inflation, higher prices for fuel, energy and materials, meeting the cost of the national minimum wage and the unprecedented increase in demand for adults and children’s social care services.

It means the council must now consider whether it can afford to keep awarding discretionary grants it has no legal obligation to give against prioritising spending on services it has to provide by law, says the report.

Cabinet will be asked to approve a recommendation to end adult social care discretionary grant funding and corporate services and transformation discretionary grant funding in March 2025. 

Recognising the value placed on the work of voluntary and community organisations, Cabinet is also asked to consider exploring measures to lessen the impact of stopping grants. It is also asked to continue supporting groups that help the council to meet its legal duties around equality and partnership working, with funding of £50,000 set aside to do this.

Councillor Natalie Hoy, the county council’s Cabinet Member for Adult Care, said: “We’ve always prided ourselves on being a well-managed council but like all other councils across the country we’re facing increasing financial pressures that are outside our control.

“Many of these organisations have been receiving grants for up to 20 years as a matter of course. Since then, Derbyshire's population has changed and people's aspirations, needs and preferences for support have also altered.

“It is vitally important that we ensure we are supporting people fairly across the whole of Derbyshire and we have to ensure that our finite resources are targeted at services we are required to deliver by law to those people who need us most.”

If agreed the proposal to stop adult social care grants would affect 30 community and voluntary groups. In total these currently receive annual grants totalling just over £722,000. 

A further 20 groups which receive grants totalling just over £333,000 would be affected by the proposal to stop corporate services and transformation grants. 

Following a previous consultation in 2022, all the groups receiving funding were told that grants would cease and the council would commission services where required instead. However, due to budget pressures, commissioning did not get underway and the council must now prioritise statutory services, says the report.

Councillor Carol Hart, Cabinet Member for Health and Communities, added: “We recognise the valuable role of community and voluntary organisations across Derbyshire which is why we’re proposing to set aside some money to support continued engagement to ensure we deliver the council’s strategy and partnership and equality objectives.

“We would also consider how we could lessen the impact if grants came to an end and pledge to work with our partners towards a longer-term sustainable future for funding to voluntary and community organisations across Derbyshire.”

To read the report in full visit: Agenda for Cabinet on Thursday, 14th November 2024, 2.00 pm - Derbyshire County Council