Covid-19: Government support for charities
Public Accounts Committee
Closed
Inquiry
On 8 April 2020, HM Treasury announced £750 million of funding support to help frontline charities continue to operate during the coronavirus outbreak . On 20 May, the Department for Digital, Culture, Media & Sport (DCMS) and the Office for Civil Society announced that they were working across government to …
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7
Recommendations
12
Conclusions
1
Report
1
Oral session
4
Letters
1
Event
Activity timeline 7 events
21 Oct
2021
2021
2 Sep
2021
2021
9 Jun
2021
2021
Report published
25 May
2021
2021
16 Apr
2021
2021
15 Apr
2021
2021
Oral evidence
Oral evidence sessions 1 session
15 Apr 2021
View on parliament.uk
COVID-19: Government support for charities
Helen Stephenson CBE · The Charity Commission for England and Wales
John Rose · The National Lottery Community Fund
Sarah Healey · Department for Digital, Culture, Media and Sport
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Fifth Report - COVID-19: Government Support for Charities | HC 250 | 9 Jun 2021 | 19 | Responded |
Recommendations & Conclusions
19 results
2
Recommendation
Accepted
Fifth Report - COVID-19: Governmen…
We are not convinced that the Department’s decisions about how to allocate funds were sufficiently...
We are not convinced that the Department’s decisions about how to allocate funds were sufficiently transparent. The Department asserts that in order to help it work at pace it decided to involve special advisers in preparing its advice to Ministers …
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Government Response
The government agrees on the importance of appropriate record-keeping and asserts that decisions were properly recorded, civil service codes upheld, and special advisers operated correctly within frameworks for funding allocations.
HM Treasury
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3
Recommendation
Accepted
Fifth Report - COVID-19: Governmen…
The Department cannot explain the additional benefit it has received from its contract with a...
The Department cannot explain the additional benefit it has received from its contract with a professional services firm to perform due diligence on charity applications to The National Lottery Challenge Fund (TNLCF). TNLCF is an organisation that is experienced in …
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Government Response
The government agrees, defends the value for money of the PwC contract by stating performance metrics were met, commits to assessing future professional services engagements thoroughly, and provides an update on post-event fraud assurance.
HM Treasury
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4
Recommendation
Accepted
Fifth Report - COVID-19: Governmen…
The Department cannot demonstrate how its funding decisions have benefited charities and will not be...
The Department cannot demonstrate how its funding decisions have benefited charities and will not be able to do so until it completes is evaluation of the funding at the end of 2021. The Department has a limited understanding of the …
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Government Response
The government agrees and outlines the main objectives and criteria for its evaluation of the funding impact, which includes assessing effectiveness, usage, and lessons learned, with an overall outcome due by December 2021.
HM Treasury
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5
Recommendation
Rejected
Fifth Report - COVID-19: Governmen…
The Department cannot yet demonstrate that it fully understands the financial health and resilience of...
The Department cannot yet demonstrate that it fully understands the financial health and resilience of the charity sector or whether further government financial support will be necessary. The funding covers the period up until the end of March 2021 and …
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Government Response
The government rejects the recommendation to set out definitive triggers for further financial support to the charity sector, stating that assessment must be based on a range of sources, but commits to setting out for the Committee the range of evidence used for such assessments.
HM Treasury
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1
Conclusion
Not Addressed
Fifth Report - COVID-19: Governmen…
On the basis of a Report by the Comptroller and Auditor General, we took evidence...
On the basis of a Report by the Comptroller and Auditor General, we took evidence from the Department for Digital, Culture, Media and Sport (the Department), The National Lottery Community Fund (TNLCF) and The Charity Commission on the government’s £750 …
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Government Response
The government response provides background information on its £750 million financial support package for charities during the COVID-19 pandemic, detailing allocated and paid-out amounts across various schemes, rather than addressing the committee's procedural statement.
HM Treasury
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6
Conclusion
Accepted
Fifth Report - COVID-19: Governmen…
We questioned the Department about how it decided which bids from other government departments it...
We questioned the Department about how it decided which bids from other government departments it would provide funding for. Special advisers were invited to discuss the initial assessments from the Department’s officials before final advice was given to Ministers.15 Correspondence …
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Government Response
The government asserts that existing procedures and codes of conduct for civil servants and special advisers were followed correctly in funding decisions, with proper records kept and appropriate distinctions maintained between impartial and political advice.
HM Treasury
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7
Conclusion
Accepted
Fifth Report - COVID-19: Governmen…
Given our concerns that this was an unusual process, the Department contended that it was...
Given our concerns that this was an unusual process, the Department contended that it was not different from the normal process by which advice was offered to Ministers. The Department, however, was unable to offer further examples of when such …
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Government Response
The government agrees with the 'recommendation' and states that appropriate records of decisions are always kept. It confirms the Permanent Secretary was satisfied that civil servants and special advisers followed the Civil Service Code, and decisions were properly recorded within the DCMS IT system.
HM Treasury
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8
Conclusion
Not Addressed
Fifth Report - COVID-19: Governmen…
The Department provided £30 million of funding to the Department for Environment, Food and Rural...
The Department provided £30 million of funding to the Department for Environment, Food and Rural Affairs (DEFRA), with £7 million allocated to the Zoo Support Fund.27 We asked the Department why the allocation to DEFRA to support zoos came from …
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Government Response
The government provides a general defense of its funding allocation processes and adherence to civil service codes but does not address the committee's specific concern regarding the appropriateness of allocating funds from a charity support package to zoos.
HM Treasury
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9
Recommendation
Accepted
Fifth Report - COVID-19: Governmen…
We also asked about the decision-making process around awards for the Community Match Challenge scheme,...
We also asked about the decision-making process around awards for the Community Match Challenge scheme, where the Department match funded the amounts raised by philanthropic groups, foundations and grant-making organisations. Ministers selected twenty organisations to receive funding, including seven out …
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Government Response
The government agrees on the importance of appropriate record-keeping and asserts that proper processes were followed, confirming relevant information is recorded and staff are regularly reminded of their duties regarding record-keeping.
HM Treasury
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10
Recommendation
Accepted
Fifth Report - COVID-19: Governmen…
The Department reduced the funding allocation to TNLCF from £310 million to £200 million around...
The Department reduced the funding allocation to TNLCF from £310 million to £200 million around one week before it was due to start distributing funding.33 When asked why this was the case, the Department told us that it was due …
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Government Response
The government agrees with the implied recommendation and commits to undertaking a project to review and improve evidence and data on the charity sector's financial health, with an update expected within three months.
HM Treasury
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11
Conclusion
Accepted
Fifth Report - COVID-19: Governmen…
The Department paid £2 million in 2020–21 to a professional services firm, PwC, to provide...
The Department paid £2 million in 2020–21 to a professional services firm, PwC, to provide support on grants and operations, including checks on awards made by TNLCF for the Coronavirus Community Support Fund (CCSF).38 We asked why this additional support …
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Government Response
The government agrees with the conclusion, explaining that consultants were contracted due to the emergency nature of the pandemic and that performance metrics were met. It states that DCMS will continue to assess any future proposals for professional services on a case-by-case basis, adhering to Cabinet Office guidance and internal assurance processes.
HM Treasury
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12
Conclusion
Accepted
Fifth Report - COVID-19: Governmen…
We have found in our reports on the government’s response to the COVID-19 pandemic, that...
We have found in our reports on the government’s response to the COVID-19 pandemic, that the need to act at speed can reduce transparency and increase the risk of fraud and error. In our report examining Government procurement and the …
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Government Response
The government agrees with the 'recommendation' and states that appropriate records of decisions are always kept. It asserts that the DCMS Permanent Secretary was satisfied civil servants and special advisers followed relevant codes, and funding decisions were properly made and recorded. It also confirms it continues to remind staff about their duties and the importance of record keeping.
HM Treasury
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13
Recommendation
Accepted
Fifth Report - COVID-19: Governmen…
By February 2021, the Department had identified 76 fraudulent applications, 70 of which had resulted...
By February 2021, the Department had identified 76 fraudulent applications, 70 of which had resulted in awards. The Department estimated that up to £614,000 had been distributed to fraudulent applicants and had reported cases equivalent to £400,000 to the police. …
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Government Response
The government agrees with an implied recommendation on fraud management and provides an update on post-event assurance for fraud and error across the financial support package, stating 88% of cases are complete with a report expected by August 2021.
HM Treasury
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14
Conclusion
Accepted
Fifth Report - COVID-19: Governmen…
The Department has not yet evaluated whether the funding package has met its objectives of...
The Department has not yet evaluated whether the funding package has met its objectives of supporting vulnerable people and relieving pressure on frontline services during the pandemic. It explained that it was in the process of procuring an evaluation and …
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Government Response
The government agrees and details the objectives of its ongoing evaluation of the funding package, aiming to understand whether it achieved its aims, how grants were used, and to draw out lessons. The CCSF impact and value for money evaluation reports are due to be published at the end of summer 2021.
HM Treasury
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15
Conclusion
Acknowledged
Fifth Report - COVID-19: Governmen…
The National Lottery Community Fund (TNLCF) told us that it undertook regular surveys of customers...
The National Lottery Community Fund (TNLCF) told us that it undertook regular surveys of customers who were accessing its funding. TNLCF explained that 77% of its customers rated their experience between eight and 10 out of 10, with 10 being …
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Government Response
The government acknowledged the committee's observation about planned evaluations, confirming that a process evaluation was published in July 2021 and impact/value for money reports were due at the end of summer 2021.
HM Treasury
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16
Conclusion
Not Addressed
Fifth Report - COVID-19: Governmen…
The National Audit Office found that the information available on the geographical distribution of funding...
The National Audit Office found that the information available on the geographical distribution of funding was at times inconsistent or missing, making it difficult to determine the geographical spread of funding awarded. At 19 February 2021, the Department held no …
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Government Response
The government states that CCSF grant funding was distributed to every region and almost every local authority in England, with indicative regional funding allocations identified from the outset. It does not address the committee's finding regarding missing or inconsistent data on geographical distribution.
HM Treasury
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17
Conclusion
Accepted in Part
Fifth Report - COVID-19: Governmen…
The Department told us that its intention was that the overall funding provided would be...
The Department told us that its intention was that the overall funding provided would be of “significant assistance [to the sector] even if it wasn’t able to cover every gap” and that it understood that “charities would have to make …
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Government Response
The government agrees and will provide an update on actions to monitor the charity sector's financial health and resilience. DCMS is undertaking a project with partners to review and improve evidence and data concerning the health of the charity and social enterprise sectors, and plans to provide an update within three months.
HM Treasury
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18
Conclusion
Acknowledged
Fifth Report - COVID-19: Governmen…
The Department recognised that charities had lost traditional sources of income during the pandemic, such...
The Department recognised that charities had lost traditional sources of income during the pandemic, such as fundraising through large events like the London Marathon and the closure of charity shops. However, it also suggested that moving fundraising online may have …
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Government Response
The government agrees and will set out current actions to monitor the charity sector's financial health. DCMS is undertaking a project with partners to review and improve data availability on the sector's health and resilience, considering options for better data use and collection, with an update to be provided in three months.
HM Treasury
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19
Conclusion
Deferred
Fifth Report - COVID-19: Governmen…
We asked about the impact of the pandemic on the financial health of the sector...
We asked about the impact of the pandemic on the financial health of the sector as a whole. The Charity Commission told us that a range of indicators suggest that charities’ finances were worsening. It explained that the number of …
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Government Response
The government agrees with the committee's observation and commits to undertaking a project with partners to review and improve the evidence and data available on the financial health and resilience of the charity sector, with options under consideration for better data utilization and collection.
HM Treasury
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Correspondence 4 letters
21 Oct 2021
Correspondence from Sarah Healey, Permanent Secretary, Department for Digital, Culture, Media and Sport, re Update on Recommendation 1, 3, 4 and 5 from the Committee’s report on COVID-19: Government Support for Charities (Fifth Report of Session 2021-22), dated 30 September 2021
Parliament page
25 May 2021
Correspondence from Sarah Healey, Permanent Secretary, Department for Digital, Culture, Media and Sport, re Evidence session on Covid-19 Charities Funding, dated 14 May 2021
Parliament page
16 Apr 2021
Correspondence from Sarah Healey, Permanent Secretary, Department for Digital, Culture, Media and Sport, re Government support for charities during the Covid-19 pandemic, dated 12 April 2021
Parliament page
15 Apr 2021
Correspondence from Public Accounts Committee Chair Meg Hillier, re Government support for charities during the Covid-19 pandemic, dated 26 March 2021
Parliament page