The government has encouraged grant recipients to “speak out” following widespread criticism of its use of “gagging clauses” in contracts with charity suppliers.
The government published a new code of conduct for grant recipients yesterday, which says it expects organisations “to speak out, without fear of consequences, when a grant-funded project or activity is unlikely to succeed because of our behaviours or a lack of good governance”.
It says it expects grant recipients to “be able to speak out” when government officials, civil servants or other grant recipients “are not upholding the values” in the Civil Service Code.
“We expect the same behaviour when a grant is no longer fit for purpose, for example, in the grant agreement stipulations or measures,” it adds.
However, the code also says: “We expect grant recipients, in delivering the funded activity, to ensure that neither they, nor any of their partners, intermediaries or even subcontractors, engage in any act or omission, which is reasonably likely to diminish the trust that the public places in government.”
This follows criticism earlier this month in The Times and on BBC Radio of the government’s use of non-disclosure agreements, otherwise known as gagging clauses, in public contracts.
Safeguarding
Former charities minister Tracey Crouch said in March that the Cabinet Office was looking to strengthen safeguarding standards in government grant arrangements, following the high-profile charity aid scandals at the start of the year.
The code says grant recipients must ensure that staff and volunteers “understand the boundaries of appropriate behaviour”.
It encourages organisations to develop their own internal guidance, training and procedures, to assist their employees whenever they interact or otherwise engage with vulnerable groups.
“This should cover being able to identify and act for vulnerable groups, to understand what constitutes improper conduct or abuse, and also how to act on that,” it says.
The code also says organisations should ensure whistle-blowers are able to speak out “without fear of consequences, for example, if they feel that vulnerable groups are in any way being treated improperly”.
It adds that grant recipients should be aware that they are required to have Disclosure and Barring Service checks carried out on those who have direct contact with vulnerable groups, where clearance is not already in place.
Social value
The code makes reference to the Social Value Act, which require commissioners to "explicitly evaluate" social value when they tender a contract and is intended to help charities win more contracts.
The code focuses on the environmental aspect of social value, saying: “We expect our grant recipients to assist government in the understanding and (if possible) reducing the potential impact grant funded activities may have on our environment.”
It adds: “We expect our grant recipients to be aware of and to support government in complying with its legal and operational obligations under social value legislation, in delivery of the wider policy that sits behind the grant agreement, and in the delivery of the targets as defined within the Greening Government Commitments 2016 to 2020.”
Sector response
Elizabeth Chamberlain, head of policy at NCVO said the new code would help to ensure greater consistency across government and service delivery sectors.
She said: "What is particularly welcome is the emphasis on the importance of speaking out if charities, in receipt of a grant, have concerns about how public money is being used or how a grant is being delivered.
Chamberlain also welcomed the code's safeguarding standards.
She said: "The code also makes it clear that grant recipients must take a greater level of responsibility for safeguarding all of those that come into contact with the grant funded programme, not only beneficiaries.
"This is also a message that NCVO is communicating through the charity ethical principles: trustees, staff and volunteers need to understand what is appropriate behaviour and reflect their charities’ values in everything they do."
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