The Home Secretary Charles Clarke has announced plans to enhance the role of voluntary and community organisations, with an extra £160m of funding.

Futurebuilders is to receive £90m of the investment, which is to be used to further develop the capacity of the sector to deliver public services, while £70m will be distributed by ChangeUp via a new sector-led agency.

The agency, called Capacity Builders, will be responsible for overseeing all the investments made by ChangeUp fund.

Also announced were developments to the Compact, which included a new Compact Plus initiative. Public and voluntary sector organisations can opt in to the scheme, which is designed to highlight good and bad practice.

Clarke said: “I believe the proposals we are setting out today will help take the relationship between government and voluntary and community organisations to the next level. We are building capacity through investment in the Futurebuilders and Change Up. And our proposals for a stronger and simpler, Compact Plus, will cut red tape, open up access to funds and further unlock the potential of voluntary and community organisations for good.”