A decision by councillors on November 1 provided a stay of execution.
Charities and voluntary groups across Edinburgh have warned the lack of sustainable funding for local services is keeping groups across the city at risk.
A meeting on November 1 saw organisations across the capital given a stay of execution after a city committee voted to reject proposals to cut to this year’s health and social care budget.
Experts warned that hundreds of third sector jobs were at threat if a proposal to pull £700,000 of funding in the current year and £4.5million next year went ahead.
The Edinburgh Integrated Joint Board (IJB) warned that “job losses may be disproportionate in areas of deprivation” if their proposed axing of its grants programme had gone ahead, withdrawing money from 64 organisations across the city.
The 2024/25 grants programme would have ended prematurely and no grants programme would return in 2025/26.
Councillors in the city voted down the proposal at committee at the beginning of the month, but four weeks on groups in the capital say risks remain amid an “urgent need to secure sustainable funding”.
Claire Ritchie, interim chief executive of the Edinburgh Voluntary Organisations' Council (EVOC) told TFN: “Though it was welcome that the Edinburgh IJB agreed not to proceed with an in-year cut to the Third Sector Grants Programme, the process leading to that decision, and risks flowing from the meeting on November 1 remain very challenging.
“Resolving the funding position for the Third Sector Grant recipients and all third sector funding from the IJB for 2025/6 alongside co-designing the conditions of success for any future model of working in partnership is a key priority for us.
“We believe the IJB proposals need to be part of a wider strategic conversation in the city about how we invest in the third sector, ensuring we have the right investment in the right places with the right capacity to deliver the most impact. There is a need for a whole city conversation on a sustainable financial settlement for the third sector, a better approach to commissioning, valuing and supporting the third sector through change and recognition of the value of the third sector contribution to communities.
“We look forward to playing our role in this alongside our partners in the Edinburgh TSI – Volunteer Edinburgh and the Edinburgh Social Enterprise Network.”
TFN understands that there remains a significant gap in the EIJB budget to close before the end of the year.
Katharina Kasper, chair of the Edinburgh Integration Joint Board (EIJB) said “The EIJB has listened to voices across Edinburgh and has voted not to proceed with in-year savings to third sector grants at this time. We have also agreed that the long-term under-funding of the EIJB cannot continue.
“We have committed to working with third sector partners and our partners in the City of Edinburgh Council and NHS Lothian to find a way forward which supports charities across the city.
“The EIJB's budget deficit which was inherited from its partners in 2016 remains, with £60m savings required this year and £50m next year. The EIJB has a legal duty to protect core services such as care homes and drug death prevention services. If a solution cannot be found we will have to come back with a recovery plan to make these savings.”
Despite the decision on November 1, questions remain over future years’ funding and the knock-on effect this will have on services provided by the third sector.
One charity reliant on the grant funding has warned of the serious consequences that proposed cuts would have.
Grant Sugden, chief executive of Waverley Care, told TFN: “The proposed cuts by the Edinburgh Integration Joint Board (EIJB) next year would have a significant impact on the people we support across Edinburgh. Waverley Care relies on EIJB funding to provide essential services for people living with HIV and Hepatitis C. One such service is our Peer Support programme, where individuals with lived experience offer guidance and support to others facing similar challenges.
“At Waverley Care, we have witnessed the transformative impact of peer support on mental health and wellbeing. However, without sustained funding for these vital services, people living with HIV face an increased risk of mental health issues, loss of critical support networks, and potential isolation. This underscores the urgent need to secure sustainable funding for HIV-specific care.”
Government ministers have also weighed in, with Edinburgh MSP and Culture Secretary, Angus Robertson, sharing in the Edinburgh Evening News fears of Gorgie-based charity Big Hearts.
He wrote: "The IJB cuts would see many of their partner organisations disappear overnight and many more within months.
“The threat of removing IJB funding to these organisations is so much more than the loss of services.
“It is a threat to the fabric of local communities and the mutual support they all give each other and those they serve. The IJB must ensure continued full funding."
