The councils that responded to DSC’s FOI request gave over £462 million in grants to Voluntary, Community, and Social Enterprise (VCSE) organisations in the most recent financial year (2023/24).
When we take non-respondent councils into account, this total is likely to be around £600 million. Let’s take a closer look at our findings…
How much does a typical council give in grants each year?
Half of all councils gave less than £520,000 in grant funding to VCSE organisations per year, and the average size of an individual grant was £13,000.
Are there any differences between different parts of the UK?
Scottish local authorities had the highest grant spending per person, which peaked at £19 per person in 2022/23. In contrast, England consistently had the lowest grant spending per person, standing at around £5 per person.
The average size of an individual grant was highest in Scotland (around £13,500–£17,100, depending on the year), lower in England (£7,400–£8,300), and even lower in Wales (£6,800–£13,900) and Northern Ireland (£4,200–£5,000).
Has the amount of grants gone up or down recently?
When DSC looked at the annual changes in average grant spending per council from 2021/22 to 2023/24, we found that grant spending had not kept up with high rates of inflation in 2022/23.
Sustained high inflation over 2022/23 and 2023/24 has eroded the value of grants to the VCSE sector and led to reduced spending power for VCSE organisations. This means that, in real terms, VCSE organisations had access to less funding in 2023/24 than in the previous year.
How has local authority grant-making changed recently?
The report found that councils facing financial hardship were much more likely to have cut their grant funding than those not in hardship (71% versus 46%).
The findings of this report show that some VCSE organisations in council areas at risk of issuing S114 notices are already facing severe funding cuts, underscoring the urgent need for swift action to prevent the situation from worsening.
How can people access information about local authority grants?
DSC’s Grants for Good report is now available to download for free. It provides the clearest picture to date of the level of local authority grant-making to the Voluntary, Community and Social Enterprise (VCSE) sector in the UK.
Get in touch with [email protected] to chat about the findings.