In 1999/2000, funding totalled £2.2b. In 2001/2002, this figure had risen to £3.3b, signalling “the value that Government places on the sector”. Figures from the report Central Government Funding of Voluntary and Community Organisations also show that the Home Office and its agencies provided total funding of £357.8m in 2001/2002 – up from £193.9m in 2000/2001.

“The government recognises that the time, talents and passion invested by its workers and supporters make a real difference to people’s lives,” said Mactaggart, speaking at the Funding the Future conference. “We are keen to help the sector bring its flair and knowledge to the delivery of public services where organisations want to get involved.”

The minister also announced details of grants worth a total of £4m, which are to be awarded to 59 local volunteer groups as part of the Home Office’s support for Year of the Volunteer in 2005.

She said: “When people get involved in a local group that has the interests of the community at heart they really make a difference for everyone in the area. We know that the most effective voluntary action is often that which starts right on your doorstep.

Copies of the report Central Government Funding of Voluntary and Community Organisations 1982/3 to 2001/2 can be obtained from www.homeoffice.gov.uk