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Strained relations
 
The relationship between public bodies and the third sector is not always roses, as the case with the LSC and Kids in Communication effectively demonstrated. Peter Davy asks if the LSC’s efforts now to improve that relationship are working, and if there are lessons to be learned for other organisations
 
There are plenty of examples of public sector bodies working well with charities and improving the relationship between the sectors. Indeed, with over a third of the voluntary sector’s income paid by the state it would be worrying if there weren’t. Of course, there are also examples where it goes badly wrong.

Take, for example, the Learning and Skills Council (LSC). The quango, or more correctly a non-departmental public body (NDBP), has spent much of the year in the headlines of the sector’s press for its decision to sue Kids in Communication (KIC FM), a small Wolverhampton-based group that provides radio skills training for youngsters.

The origins of that dispute, over a £119,000 contract, stretch back to 2003, but it was only settled in the spring when a former director of the charity paid £50,000 of his own money to avoid a court case. In the meantime, the LSC had racked up £155,000 in legal fees. John Stoker, the then compact commissioner, was probably guilty of understatement when he said the case had “not been a good experience for anyone”.

Perhaps not surprisingly, this has tended to divert attention from some of the LSC’s more noble endeavours. It might also cast doubt on their effectiveness.

One of these is the council’s efforts with its Working Together Strategy. Published in May 2004 (shortly after problems with the KIC FM contract had started to materialise) the strategy aimed to “create a step-change” in the LSC’s relationship with the voluntary sector. At the start of this year, the LSC – keen to ensure the strategy was actually implemented – introduced a Working Together Advisory Group, whose members are drawn from voluntary groups, to advise it.

Some, of course, will dismiss this as a gimmick. Inevitably Rob Smith, chief executive of Kids in Communication, is not impressed. He is still smarting from the results of what he maintains was a “backside-covering exercise” by those involved at the LSC who had handled the contract badly, and doubts an advisory panel will make any difference.

“We weren’t even aware of it until recently,” he says. “I think the LSC probably just needs to be seen to be doing something, but the relevance of it is doubtful.” If there was a time for listening to the voluntary sector, he suggests, it was when his group was trying to negotiate an amicable resolution to the contract dispute.

The advisory group’s chair, Shirley Cramer (also the chief executive of Dyslexia Action) admits that the case has done the LSC’s reputation no favours. However, she maintains that the group is doing valuable work. “It’s actually very sad because there is a lot of good work going on,” she says.

Positions on the group were advertised and Cramer says the ten members have been selected to represent the diversity in the voluntary sector, including large, small, rural and urban groups, as well as a consortium body. “It really reflects the voice of the voluntary sector as closely as possible,” she says.

This is already having an effect, according to Cramer. For instance, the group’s work includes helping ensure all processes are Compact compliant; ‘proofing’ procurement processes to ensure they don’t disadvantage third sector groups; and creating a staff development programme for the LSC to ensure workers understand how voluntary groups work. She is confident the group will help make sure the promises of the strategy actually materialise.

“You can have lots of lovely words from senior people in an organisation but until you begin to see how to make it work on the ground, those words don’t really mean anything,” she remarks.

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Old hands

Of course, such groups are not new. At local level, for instance, there are any number of panels made up of voluntary sector workers to help councils or NDPBs’ regional offices work better with the sector, and there is strong evidence that they can achieve this.

Theresa Gillard, head of contracting for the Birmingham Voluntary Services Council (BVSC) is responsible for one. She was seconded for five months to Birmingham City Council, working one day a week to develop a new commissioning framework. To help her do so, she used a forum of local voluntary sector chief executives as a consultation group. Her work ensured the adoption of three-year contracts, full cost recovery and a light monitoring scheme for smaller contracts. It also helped the council achieve Beacon status for partnership working with the sector.

“It’s helped the council take down some of the real barriers that stopped voluntary groups going for commissioning,” remarks Gillard, who is now, coincidentally, doing some similar work with her local LSC office.

Similarly, at a national level, many government departments have groups in various guises that help oil the wheels of the relationship with the charity sector. Saskia Daggett, manager of the Compact Advocacy Programme at NCVO, says these groups are essential in helping to meet a key principle behind the compact: open discussion and dialogue.

“It’s crucial that the sector’s concerns, experience and expertise can be listened to,” she says. DEFRA and the Department of Health are both doing particularly good work with their groups making sure this happens, she adds.

To date, however, these groups are less common in NDPBs. This is a shame because it is arguable that this is where such advice is most needed, as these bodies have a particularly bad record when it comes to their relationship with the sector. True, the Learning and Skills Council case was particularly bad (“Unbelievable”, says Daggett. “We’d never handled anything like it.”) but the Legal Services Commission, and Job Centre Plus have also had problems.

Partly this seems to be down to the way such bodies are set up. The Compact, for instance, plays no part in their constitutions, and for many the voluntary sector has been – at best – a side issue. Cramer’s work, for instance, includes changing the organisation’s data capture system so that the group can actually see which third sector organisations it has dealings with and how they contribute to the targets that drive the body. To date this hasn’t been clear, so its relationship with the voluntary sector has not always been a focus.

“Part of the problem is just down to structures that have been put in place for accountability,” explains Cramer.

Undoubtedly, central government and the departments sponsoring these bodies bear some blame for this. As Daggett points out: “You can hardly blame NDPBs for not sticking to the Compact, for instance, if they’ve never been told about it and it’s not in their guidance.” On the other hand, she says, this excuse is getting a little tired. The Compact, after all, has been around for nine years now. “Enough already,” she says. The finger pointing has to stop.

In this respect, Cramer’s group is to be welcomed as it is likely to be part of the solution. How much of a solution, though, is open to question. Even Cramer admits it will take time to change an organisation with a budget of £10.4bn.

At the Commission for the Compact, meanwhile, head of policy Andy Forster says that while such initiatives are to be encouraged they are only a small part of the picture. Giving the Compact a more formal role through local strategic partnerships, for example, is likely to see far more impressive results.

However, his counterpart at Acevo, Seb Elsworth, is not so sure. There is much more that can be done, he agrees, but he argues that the sector should take real encouragement from these schemes. What they show, he says, is that the argument has been won.

“We’re at a tipping point,” he explains. “The last few years have been about discussing the principles and priorities. Those are now settled. In terms of full cost recovery, long term contracts, risk sharing – they have all been accepted.”

The challenge now, he says, is how to implement them. Of course, when it comes to this, some are already doing well. Others, though, still have further to go.


Should they have got involved?

One of the criticisms that can be levelled at the Working Together Advisory Group is its near invisibility during the dispute with Kids in Communication. Some noted that neither Cramer nor NSPCC director Mary Marsh, who both sit on the National Council, publicly intervened.

Whether those individuals should have done so is open to question, but as for the Advisory Group, Daggett insists it was entirely proper that it refused to get involved.

“I’m quite pleased that they didn’t,” she says. “The role of these groups is to look at the relationship with the voluntary sector as a whole, not take on particular cases. I can see it being quite messy if it did.”

Not surprisingly, Cramer agrees, although she points out that even if she had wanted to help, there was little she could have done.

“It was a difficult one, because the group didn’t know anything about it,” she says. “We had no background information and it was with the lawyers by the time we heard about it, so we weren’t able to look at it.”

Nevertheless, she says, the changes her group is helping to put in place mean that such a case would not escalate to the same extent in future. “Going forward things will be dealt with differently,” she insists. “We wouldn’t expect to see that happening again.”


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