Approximate read time: 11 minutes

On 31 October 2024, the House of Lords is scheduled to debate the “contribution of the community and voluntary sector to society across the United Kingdom”. Baroness Morgan of Drefelin (Labour) is sponsoring the debate. Baroness Morgan is the President of the National Centre of Voluntary Organisations.

1.   What is the voluntary and community sector?

The phrase ‘voluntary and community sector’ is not formally defined. It is often used to refer to a wide range of organisations that aim to fulfil a specific social purpose including charities and community groups, as well as paid and volunteer workforces. ‘Voluntary sector’, ‘third sector’ and ‘civil society’ are other frequently used names. The government uses the term ‘voluntary, community and social enterprise sector’ (VCSE sector). The lack of official definition means data collection and impact analysis across the sector is varied.

2.   Recent data on the shape and economic impact of the UK voluntary and community sector

Each year, the National Council for Voluntary Organisations (NCVO) publishes an annual overview of the UK voluntary sector.[1] Its ‘UK civil society almanac’ report includes information on the number of voluntary organisations, their workforce and economic impact. As there is no official definition of the voluntary sector, the NCVO uses its own working definition of ‘voluntary organisation’ for the purpose of the almanac.[2] The NCVO published its latest almanac on 12 October 2023.[3] Some key headlines are set out below.

2.1 Number of voluntary organisations

The number of voluntary organisations in the UK has slightly decreased from 2020/21 compared to 2019/20.[4] The NCVO said there were 163,959 voluntary organisations in 2020/21, compared to 165,758 in 2019/20.[5]

The 2023 almanac only covered the first full year of the Covid-19 pandemic period.[6] The NCVO said the pandemic appeared to have encouraged the growth of micro organisations in 2020/21. A decline in the number of small and medium organisations was also reported. The NCVO stated the 2024 almanac would provide further evidence of the pandemic’s ongoing impact on the number of voluntary organisations.

Table 1 shows the number and percentage of voluntary sector organisations by size in 2020/21. It shows the majority to be micro and small organisations, defined as those with income bands of ‘less than £10,000’ and ‘£10,000 to £100,000’ respectively:

Table 1. Number and percentage of voluntary sector organisations by size, 2020/21.[7]

Income band Name Number of organisations % of all organisations
Less than £10,000 Micro 77,295 47.14
£10,000 to £100,000 Small 54,431 33.20
£100,000 to £1mn Medium 25,569 15.59
£1mn to £10mn Large 5,861 3.57
£10mn to £100mn Major 743 0.45
More than £100mn Super-major 61 0.04
All organisations Total 163,959 100.00

Voluntary organisations are involved in a range of subsectors. In 2020/21, around a fifth of organisations (31,115) worked in social services. This was the largest voluntary subsector, followed by the culture and recreation subsector (24,556) and religion (16,495). The smallest subsectors were employment and training (1,642) and umbrella bodies (1,005). Figure 1 shows the number of organisations broken down by subsector in 2020/21:

Figure 1: Number of organisations by subsector, 20202/21

This chart shows the number of organisations by subsector in 2020/21.
(National Council for Voluntary Organisations, ‘UK civil society almanac 2023: Executive summary’, 12 October 2023)

2.2 Economic impact

The voluntary sector contributed £17.8bn to the UK economy in 2020/21, according to NCVO estimates.[8] It said this equated to 0.8% of total gross domestic product (GDP). The social services subsector contributed the most, worth £3.4bn. This was followed by culture and recreation (£2.3bn), international (£2.3bn) and health (£2.1bn).

The percentage of the sector’s contribution to GDP has remained stable since 2015/16. However, the percentage was marginally lower in 2020/21 when compared to the previous year. Figure 2 shows the contribution of the top ten subsectors to the UK economy in 2020/21:

Figure 2. Top ten subsectors by contribution to the economy, 2020/21 (£mn)

This chart shows the contribution of the top ten subsectors to the UK economy in 2020/21.
(National Council for Voluntary Organisations, ‘UK civil society almanac 2023: Impact’, 12 October 2023)

2.3 Workforce

The sector employed around 925,000 people in 2023.[9] The NCVO said this was equivalent to around 3% of the UK workforce. Since 2011, the NCVO said the sector had grown by around 24% or the equivalent of about 180,000 people. Social work remained the largest employing subsector, with over 345,000 employees (36%) of the total sector workforce. This was followed by education (around 125,000 employees or 13%) and residential care (around 100,000 or 11%).

2.4 Participation in volunteering

In 2021/22, an estimated 14.2 million people in the UK volunteered through a group, club or organisation at least once.[10] The NCVO said the level of formal volunteering had declined since 2020/21 and remained below pre-pandemic levels. In a separate report, the NCVO referred to a “significant” decrease or complete suspension of volunteering activities at the initial phase of the pandemic.[11] It cited a risk to health as a major barrier to volunteering during the pandemic.[12]

A decline in volunteering amongst young people has also been reported. Data published by Youth Employment UK as part of its annual young voice census said that volunteering participation rates amongst 11-to-30-year-olds surveyed had reduced from 24% in 2023 to 17% in 2024.[13]

The four UK nations also publish official statistics on volunteering participation rates within their respective nation:

  • England: Results from the latest Department for Culture, Media and Sport (DCMS) community life survey showed that 16% of respondents (approximately 7 million people) had taken part in ‘formal volunteering’ at least once a month in 2021–22.[14] This was in line with the participation rates of the previous year. However, the DCMS said these participation rates were the lowest recorded since data collection on the community life survey began. The DCMS defines formal volunteering as those who have given unpaid help to groups or clubs, for example administrative support, befriending or mentoring people. For ‘informal volunteering’, 26% of respondents (approximately 12 million people) had taken part at least once a month during 2021–22. This was in line with 2019–20 levels but lower than 2020–21 when rates were the highest recorded by the survey. Informal volunteering is used to refer to those giving unpaid help to individuals who are not a relative, for example caring for children or helping with household tasks such as cleaning, laundry or shopping.
  • Wales: Results from the Welsh government’s latest national survey for Wales found that 30% of respondents had volunteered in 2022–23.[15] This was an increase from 26% in 2019–20.
  • Scotland: Results from the Scottish government’s latest household survey found that 22% of respondents in Scotland had undertaken formal volunteering in 2022.[16] This was a decrease from 26% in 2019 and 30% in 2011. In comparison, the rate of informal volunteering was 24% in 2022, an increase from 22% in 2018 (the last year for which comparable data is available).[17]
  • Northern Ireland: Results from the Northern Ireland Department for Communities’ continuous household survey found that 28% of adult respondents volunteered in 2019–20.[18] This was consistent with the rates from the previous two years.

Research by economic analysis charity Pro Bono Economics (PBE) has described the positive effect volunteering could have on wellbeing, wages and productivity.[19] For the volunteer, PBE said the experience could increase confidence, skills development and social connections.[20] It said evidence had shown that motivating factors for some people included learning new skills and meeting new people. For the wider economy, the charity said volunteering had the potential to boost productivity and increase wages for volunteers. Additionally, it said volunteering could help people to re-enter the workplace. Evidence from national volunteering charity the Royal Voluntary Service has also highlighted that unemployed volunteers gained experience, new skills and confidence through volunteering which could improve their overall employability. Given these benefits, the PBE recommended that more should be done to encourage and support volunteering.[21]

3.   Calls for greater collaboration between the sector and government

Think tank and social sector consultancy firm New Philanthropy Capital (NPC) has argued that the state under-utilises resources and expertise of charities and funders.[22] According to research by NPC, most survey respondents wanted the government to work in partnership with charities more often.[23] As such, it has called on the government to do more to support charity and government partnerships.

NPC Chief Executive Dan Corry has recently described the sector’s impact as “plateauing” because it has “a system that works against impact”.[24] He gave several reasons for this, including a lack of data, learning and evaluation. He called for increased collaboration amongst charities themselves in order to increase their impact. Mr Corry said organisations within the sector needed to work together with all levels of government in order to influence government to create “major change”.

The Local Government Association has called on the government to provide consistent support to the VCSE sector.[25] It described how the sector could play a key role in meeting low-level needs in the community through quick mobilisation and providing access to an additional workforce.

Additionally, the National Association for Voluntary and Community Action (NAVCA) has urged the government to recognise the contribution local infrastructure could play in meeting government ambitions for thriving communities.[26] It has called on the government to work with the VCSE sector as an “equal strategic partner” to improve outcomes for communities.

4.   Government policy announcements for the voluntary and community sector

On 17 October 2024, Prime Minister Keir Starmer announced a “fundamental reset” of the relationship between government and civil society to “fix the foundations of our country”.[27] He said a new ‘civil society covenant’ would be created to mark a “new beginning” of the government’s relationship with civil society and to address society’s economic and social issues. The prime minister said the reset would enable the government to harness the sector’s “dynamism, innovation and trusted reach” to “boost growth and deliver better outcomes for communities”.

Alongside the announcement, the government published a covenant framework.[28] This framework sets out the ambition, scope and key principles that the government says should underpin the new relationship. It includes four high level principles: recognition, partnership, participation and transparency. The government said these four principles would act as a starting point for wider engagement across government, the public and civil society. DCMS said it had worked with civil society bodies including the NCVO and the Association of Chief Executives of Voluntary Organisations to discuss their vision for the new partnership.[29]

The government is holding an engagement period throughout the autumn of 2024. It said this time would be used to seek views from civil society about what the covenant should contain. The engagement period is expected to include discussions with organisations from across civil society, including those of all purposes, sizes, geographical locations and demographic focus. Engagement is also expected to take place across government, including the devolved governments, arm’s length bodies, local authorities and mayoral combined authorities. Following this engagement period, the government has said that the final covenant would be published in 2025.

Culture Secretary Lisa Nandy said the covenant would recognise “the critical role the sector plays as a trusted partner in achieving shared goals for the benefit of communities across the UK”.[30] Civil society organisations such as the NCVO, NAVCA and the Refugee Council have welcomed the government’s commitment to developing its relationship with the sector.

5.   Read more


Cover image by Julia M Cameron from Pexels.

References

  1. National Council for Voluntary Organisations, ‘UK civil society almanac 2023’, 12 October 2023. The NCVO is an umbrella body for the voluntary and community sector in England. Return to text
  2. National Council for Voluntary Organisations, ‘UK civil society almanac 2023: Profile’, 12 October 2023. Return to text
  3. National Council for Voluntary Organisations, ‘UK civil society almanac 2023’, 12 October 2023. Return to text
  4. National Council for Voluntary Organisations, ‘UK civil society almanac 2023: Executive summary’, 12 October 2023. Return to text
  5. National Council for Voluntary Organisations, ‘UK civil society almanac: Data tables’, accessed 22 October 2024, table 2.2. Return to text
  6. National Council for Voluntary Organisations, ‘UK civil society almanac 2023: Executive summary’, 12 October 2023. Return to text
  7. As above. Return to text
  8. National Council for Voluntary Organisations, ‘UK civil society almanac 2023: Impact’, 12 October 2023. This figure is based on a method developed by the NCVO and Office for National Statistics to estimate the voluntary sector’s gross value added (GVA). The NCVO stated that whilst the method has limitations, it judges it to provide the best indication of the economic value of the sector. The contribution to gross domestic product (GDP) or GVA is not equal to turnover. Return to text
  9. National Council for Voluntary Organisations, ‘UK civil society almanac 2023: Workforce’, 12 October 2023. Return to text
  10. National Council for Voluntary Organisations, ‘UK civil society almanac 2023: Volunteering’,12 October 2023. Return to text
  11. National Council for Voluntary Organisations, ‘Time well spent: Impact of Covid-19 on the volunteer experience—How did Covid-19 change volunteering?’, 22 July 2022. Return to text
  12. National Council for Voluntary Organisations, ‘Time well spent: Impact of Covid-19 on the volunteer experience—At a glance’, 22 July 2022. Return to text
  13. Youth Employment UK, ‘Youth voice census results 2024’, accessed 22 October 2024, p 174. Youth Employment UK is an independent, not for profit social enterprise that aims to address youth unemployment. Return to text
  14. Department for Culture, Media and Sport, ‘Community life survey 2021–22: Volunteering and charitable giving’, updated 3 May 2023. Return to text
  15. Welsh Government, ‘Volunteering (national survey for Wales): April 2022 to March 2023’, 30 November 2023. Return to text
  16. Scottish Government, ‘Scottish household survey: Volunteering data tables’, 12 December 2023, table 8.1. Return to text
  17. As above, table 8.52. Return to text
  18. Northern Ireland Department for Communities, ‘Experience of volunteering by adults in Northern Ireland 2019–20’, 22 October 2020. Return to text
  19. Pro Bono Economics, ‘A pro bono bonus: The impact of volunteering on wages and productivity’, March 2024. Return to text
  20. As above, p 4. Return to text
  21. As above, p 5. Return to text
  22. New Philanthropy Capital, ‘Partners for change’, June 2024, p 2. Return to text
  23. New Philanthropy Capital, ‘State of the sector 2024’, February 2024, p 4. Return to text
  24. Civil Society, ‘Charity sector needs to change way it thinks about impact, says outgoing NPC boss’, 17 October 2024. Return to text
  25. Local Government Association, ‘Our 100 offers to the new government’, 28 June 2024. Return to text
  26. National Association for Voluntary and Community Action, ‘The power of local infrastructure: How a new government can work with NAVCA members’, 13 June 2024. Return to text
  27. Department for Culture, Media and Sport, ‘Government partners with civil society to transform lives across the UK’, 17 October 2024. Return to text
  28. Department for Culture, Media and Sport, ‘Civil society covenant framework launch’, 17 October 2024. Return to text
  29. Department for Culture, Media and Sport, ‘Government partners with civil society to transform lives across the UK’, 17 October 2024. Return to text
  30. As above, 17 October 2024. Return to text