Hundreds of third sector jobs are under threat.
Charities will be forced to close and communities left in limbo if planned cuts to community health and social care organisations go ahead, third sector leaders have warned.
A report published last week by the Edinburgh Integrated Joint Board (IJB) warned that “job losses may be disproportionate in areas of deprivation” as a result of pulling £700,000 in the current year and £4.5million next year.
The IJB, funded jointly by the NHS health board and the council, has proposed axing its grants programme, withdrawing money from 64 organisations across the city.
The 2024/25 grants programme would be ended prematurely and no grants programme would return in 2025/26.
One organisation said the cuts could "cause around 100 job losses and take away services to around 40,000 Edinburgh residents".
The proposal comes amid a warning that despite £50m of savings in recent years, a further £50m of cuts will have to be made.
The recent announcement by the Integrated Joint Board (IJB) regarding the disinvestment from up to 64 community organisations as part of its recovery plan for 2025/26 has ignited significant outrage among Third Sector, including members of the Edinburgh Community Health Forum (ECHF).
Edinburgh Community Health Forum has now called for an immediate halt to funding cuts announced by IJB.
ECHF's strategic development manager, Stephanie-Anne Harris, said: “This drastic cut threatens the very fabric of our community support systems and undermines our collective commitment to health and wellbeing in Edinburgh.
"This disinvestment will lead to the closure of numerous charities and an increased reliance on statutory services, including the NHS and Council.
“Furthermore, it contradicts the Scottish Government’s and Public Health Scotland’s advocacy for prevention and early intervention strategies. Evidence overwhelmingly supports that investing in prevention is one of the most cost-effective methods to improve health outcomes and reduce inequalities. This short-term approach to achieving savings is fundamentally misguided."
Historically, core funding for the Third Sector was managed by the council before being transferred to the Integration Joint Board (IJB) - a legal entity that combines a health board and a local authority.
The current proposed cuts pose a severe threat to organisations that provide essential services to some of Edinburgh's most vulnerable residents.
Catriona Windle is chair of ECHF and CEO of Health All Round, a charity dedicated to supporting residents in Gorgie Dalry, Saughton, Stenhouse, and surrounding areas.
She said: "We call for an immediate halt to cuts scheduled for 2025 and urge the IJB to engage in meaningful discussions with the sector about sustainable funding solutions. While we recognise the need for budgetary considerations, we cannot afford to compromise on the vital support that Third Sector organisations provide. We propose delaying cuts until September 2025 to allow for a proper conversation about the future.
“The IJB must recognise that resourcing for the Third Sector is not non-essential; it is crucial for the wellbeing of our communities. We implore Council leaders and the IJB to consider resuming full responsibility for funding these vital services or to engage the Third Sector in developing a strategic funding model that ensures ongoing investment in our collective health.”
Independent councillor Ross McKenzie said that some small progress has been made in recent days, the council set to step in and use reserves to cover the 2024/25 shortfall.
He wrote on X/Twitter: “Under intense pressure from affected charities and opposition parties, it looks likely that the council will find £700k from reserves to maintain the grants until the end of March.
“Serious engagement with the sector on a long-term replacement to the grants programme needs to begin immediately, along with an apology for the disgraceful way the Edinburgh IJB attempted to implement this cut.”
Pat Togher, Chief Officer of the Edinburgh Integration Joint Board, said “ Proposed changes to grants represent less than 3% of our overall spend from the EIJB to the third sector with the remaining savings consumed by the Health and Social Care Partnership. Projects were awarded funding for 3 years in 2019 which was subsequently extended in 2022 due to continued disruption from Covid and are due to end in March 2025.
The EIJB were required to close a £60m financial gap this year and are currently preparing for similar savings 25/26. We must make the necessary decisions to protect our core legal duties and protect our most vulnerable – such as providing care homes, applying adult protection/ mental health legislation and preventing further drug related deaths in the city. It is in this context that we must decide on how we now prioritise spend when faced with the gravity of the savings imposed and ensure longer term sustainability.
We have a duty to spend public money carefully and we will therefore bring forward proposals to achieve the best for the citizens of Edinburgh through working with our third sector partners to ensure clear, measurable outcomes which improves health and social care in Edinburgh.”
