Claims the “Big Society” will come to the rescue of cash-strapped public services have been questioned after a project which helps keep 35,000 vulnerable people off Birmingham’s streets had its budget cut by £16.6 million.
The Supporting People programme, which is funded by Whitehall but administered by Birmingham City Council, will lose a third of its money this year.
The scale of the reduction shocked third sector leaders in Birmingham, who described the cut as “brutal and short sighted”.
Jean Templeton, chief executive of St Basils, a charity which provides shelter for homeless young people, warned that, by removing so much money from voluntary groups, the Government would pile up future problems for councils.
She argued that Supporting People was highly successful at taking the pressure off statutory services, such as housing and social care, and played a vital role in preventing vulnerable people from becoming reliant on “high level and very expensive care”.
Ms Templeton told a scrutiny committee that the budget reduction was far harsher than expected and that voluntary groups had been given little notice.
It was thought initially that Supporting People would lose £12.8 million, about a quarter of its budget. But the figure was recently increased by a further £3.8 million.
“We are desperately trying to support vulnerable people in this city, so we were very taken aback at the size of the reduction,” she added.
Brian Carr, chief executive of Birmingham Voluntary Service Council (BVSC), said the speed at which the cut had been ordered was “disturbing”.
He added: “We always expected there would be savings to be made, but the pace of this is very worrying.
“Our members are very clear that they are not immune from the cuts.
“But what we are finding is that most public bodies are reducing funding in a way which does not take account of the potential long-term cost.”
Mr Carr added that, although voluntary organisations in Birmingham were feeling the squeeze, the sector was still worth £28 million to the city’s economy.