[cma-l] DoH announces replacement to Section 64 grants scheme

[CMA-L]

By John Plummer, Third Sector Online, 17 July 2008

The Department of Health is changing its main grants scheme for the
voluntary sector, it announced today.

The new system, known as the Third Sector Investment Programme, has
opened for applications and will begin making awards next year.

It replaces Section 64 grants for charities that deliver services on
behalf of the DoH.

The announcement comes after a consultation with more than 700 third
sector organisations on how the DoH could improve its funding of the
health and social care charity sector.

Two years ago, charities threatened legal action against the DoH for
delaying Section 64 grants.

The new programme has two strands: a strategic partner programme and
an innovation, excellence and service development fund.

For the former, the DoH will recruit up to 10 strategic partners from
the voluntary sector and pay them to ensure better communication
between charities and the DoH.

The innovation, excellence and service development fund will pay for
national projects that contribute to the DoH objectives of improving
health and wellbeing.

Ivan Lewis, the care services minister, said the new funding
arrangements would make funding "more transparent and effective".

The DoH has not yet revealed details of how much funding charities can
apply for or the total value of each fund, but it said "funding
support for the third sector from the department with remain the
same".

This year, the DoH awarded £24m in Section 64 grants to charities that
deliver services on its behalf.

Ann Blackmore, head of policy at the NCVO, hailed the new arrangements
for giving the third sector a greater say in funding arrangements.

"We have long called for reforms to the process of commissioning to
ensure that our members have the opportunity to contribute their
knowledge, skills and expertise to the provision of healthcare."

But she said a final verdict would depend on the detail.