cuts to charity sector while politicians get pay rise

MLAs and representatives of the community and voluntary sector are among those who have slammed the Labour government for the decision to push ahead with funding cuts to charities in the north of Ireland. As a result of post-Brexit expenditure changes, on April 1 Westminster will replace the UK Shared Prosperity Fund (UKSPF) with the Local Growth Fund (LGF). The UKSPF supplied money previously provided by the EU. The move will result in a loss of £16m per year for the community and voluntary sector, going from £25 million to just £9 million.

People Before Profit MLA Gerry Carroll was among those who condemned the decision, saying:

From Wednesday, Westminster will reduce funding for community support programmes by a staggering 64%. This will leave 11,000 people without employment support, and equates to roughly 400 job losses in the sector. It’s particularly cruel that on the same day hundreds of charity workers are handed redundancy notices, a £14,000 pay increase for MLAs will come into effect.

Politicians to get 27% pay rise as charities have funds slashed

The independent remuneration board confirmed last month that MLAs would be receiving the obscene salary uptick, taking salaries up to £67,200. Part of their reasoning was that it will be combined with penalties in the event of another Stormont shutdown. There will be 10% cuts on each of weeks 6, 12 and 18 in the event of a collapse. This seems like curious logic, given the whopping pay boost gives MLAs a buffer that makes financial penalties much easier to absorb.

Carroll called on Stormont to fix the problem through transfer of moneys from corporate rates relief:

Rather than begging Westminster for help that clearly isn’t coming, the Executive must step in today. It is entirely within their remit to provide the £15.8 million to keep these services afloat. The five big parties found £1.2 million for a 27% pay hike and handed over £76 million in rates breaks for the likes of Moy Park and Coca Cola last year alone. It’s time they cough up for people who need it most.

England, Scotland and Wales have all long since abolished these corporate handouts. Carroll also criticised Democratic Unionist Party (DUP) education minister Paul Givan for “overseeing a slow-motion collapse of youth services“. He concluded:

Working class communities didn’t create this crisis and they shouldn’t be made to pay for it.

The cuts will primarily affect employment support programs. The Northern Ireland Council for Voluntary Action (NICVA) represents charity and community groups across the Six Counties (a decolonial term to refer to the north of Ireland). Earlier in March their CEO Celine McStravick highlighted the effect cuts will have on already marginalised groups:

This drastic reduction in funding for Local Growth will strip away vital services for people furthest from the labour market – including young people, those with disabilities or returning to work after long‑term illness and those with caring responsibilities. These are precisely the groups most in need of targeted, sustained intervention and support.

Disabled people to lose crucial support

The Chief Commissioner for the Equality Commission for Northern Ireland Geraldine McGahey had previously highlighted the support needed by disabled people to assist them into employment. She said:

Recent figures report that the disability employment rate here remains stubbornly low at 43.4%, while the disability employment gap is most recently reported as 40.3 percentage points and remains the largest of any of the UK regions.

Ultimately Northern Ireland simply cannot afford cuts to the very limited budgets that currently exist for this important and often life changing work.

NICVA’s McStravick contrasted the support Westminster provides other nations under its control with that granted to the North of Ireland:

Today’s announcement from the Prime Minister highlights a growing disparity between the opportunities being created elsewhere in the UK and the shrinking support available for those most acutely in need across Northern Ireland. While England is benefitting from billions in new investment to tackle youth unemployment and expand apprenticeships, Northern Ireland is witnessing its core employability infrastructure being hollowed out.

Secretary of state for Northern Ireland Hilary Benn has said he expects Stormont to cover the gap in funding itself. However, multiple Northern Ireland Executive ministers have already said they are unable to cover the bare minimum for their departments as it is.

The first day of April is offering fresh opportunities for Westminster to once again show it is populated by fools. Labour continues its trend of being penny wise and pound foolish, as it fails to cough up tiny sums that would pay off many times in the long run.

Featured image via the Canary