Nearly half of voluntary and community sector (VCS) organisations in the youth sector would have insufficient reserves to operate beyond six months if their funding ended, according to a new survey.
Today, the National Youth Agency (NYA) published its third National Youth Sector Census, which aims to increase understanding of where youth work takes place and how it is delivered and funded.
The census received 907 responses from 821 organisations, of which 84% are from the VCS, up from 82% last year.
The remainder of the 100 responses are from upper-tier local authorities, district councils, metropolitan borough councils and unitary authorities.
‘Sharp increase’ since last year’s findings
Some 46% of VCS organisations reported having reserves that would allow them to operate normally for less than six months, an 11 percentage points increase on last year’s findings.
“This is a sharp increase in the proportion of organisations who are struggling financially and is particularly concerning given increasing operational costs and demand for many in the sector,” the census says.
Respondents from less deprived areas have larger financial reserves, with 37% in the two least deprived quintiles holding reserves that would allow them to operate for over a year. This compares to 24% in more deprived areas.
Meanwhile, half of organisations in more deprived areas have reserves for fewer than six months, compared to a third in less deprived areas.
Operating costs present ‘substantial challenges’
The census finds that increased operating costs and reduced budgets “present substantial challenges in the youth sector”.
Nearly eight in 10 respondents cited increased operating costs as their biggest challenge over the past year, followed by increased demand for existing services (69%) and a decline in funding or operating budgets (59%).
“Mental health services have seen increased demand much more often than any other targeted service, with demand increasing amongst four in five (82%) organisations,” the census reads.
The census adds that services responding to violence and crime have also seen a considerable increase in demand for two-thirds (66%) of respondents.
“Almost two-thirds (64%) of organisations report increased demand in services addressing employment, training and skills for work, and a similar proportion have seen increased demand for supporting schools and colleges, including alternative provision.”
Over half of respondents (54%) cited staff recruitment as a challenge and 49% said they struggled with volunteer recruitment. Staff wellbeing and retention were also concerns for respondents.
Some 34% experienced challenges with staff and volunteer wellbeing while a similar number (32%) considered volunteer retention problematic, slightly more than staff retention (28%).
Census paints a ‘depressing picture’
NYA’s chief executive Leigh Middleton said: “Our latest census report paints a rather depressing picture of the state of the youth work sector, but it comes as no surprise that there simply isn’t sufficient provision to meet the burgeoning needs of young people.
“Recovery from over a decade of austerity measures, amounting to a loss of £1.1bn in real terms cut to local authority budgets, devastating the sector, is not going to happen overnight.
“The future is not all bleak however, and we’re heartened by the realisation amongst policymakers that the distinctive contextual support which youth workers provide is a vital component of broader strategies to improve young people’s health, safety and engagement with education and training.”
Kevin Jones, head of workforce at NYA, added: “The funding challenges faced by grassroots youth organisations, in particular, mean that they’re stuck in a catch-22 of wanting to expand their offer to extend their reach, but as they’re unable to offer the assurance of long-term contracts, they just don’t have the capacity to meet the demand for new or more activities, or indeed attract new staff to grow their offer.”
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