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Department of Health - Third Sector Investment Programme

On 17 July 2008 the Department of Health (DH) announced it was changing the main grants scheme for the voluntary sector.

Second Following the Strategic Review of Department of Health funding of third sector organisations, the DH has decided to replace s.64 General Scheme of Grants for charities from 2009-10, with a new system known as the Third Sector Investment Programme.

Grants under the third sector investment programme will be made using powers provided by s.64 of the Health Services and Public Health Act 1968 that gives the Secretary of State for Health power to make grants or loans to certain voluntary organisation in England whose activities support the DH’s policy priorities. Such organisations must meet the legal requirement of s.64 to qualify.

The announcement comes after the DH carried out formal consultation on proposals for a strategic framework for its funding and investment in the third sector in December 2007. The review aimed to achieve a more strategic approach to the DH’s direct investment in the third sector, that was more consistent with its role in the health and care system. It is hoped that a clear framework will allow:

	more coherent national investment;
	support evaluation of outcomes and benefits from that investment;
	increase value for money; and
	reinforce the sector’s integral role in improving health and wellbeing outcomes for people.

(Third Sector Investment Programme – Strategic Partner Scheme 2009-10). The funding programme will be developed over time and consist of four functions:

	Investment in Strategic Partners (2009-10)
	Support for Innovation Excellence and Service Development (2009-10)
	Promotion and Support for volunteering (2010-11)
	Contracting for any expertise required at national level.

The first of the two functions listed above replace the old s.64 grants scheme for both Project and Core grants, and will be the two strands of the current funding programme. The latter two strands will be introduced to the scheme on 2010.

For an organisation to be eligible under the Strategic Partner Programme or the Innovation Excellence and Service Development Fund, it must show that it meets the legal requirements under s.64 of the 1968 Act i.e:

	Your organisation must be carrying out activities that involve:
	“… Providing a service similar to a service provided by the National Health service or by local authority social services, promoting, publicising or providing advice concerning the provision of either a National Health or local authority social service or a similar service.”
	A ‘relevant service’ is defined in the 1968 Act and means;
	“a service which must or may, by virtue of the relevant legislation, be provided or the provision of which must or may, by virtue of that legislation, be secured by the Secretary of State or a number of other public authorities, or a service for the provision of which a Primary Care Trust or other health service body under Part 2 of the National Health Service Act 2006 are under a duty (by virtue of Part 2 of the 2006 Act) to make arrangements; and
	A ‘voluntary organisation’ is defined in the 1968 Act as:
	“… a body the activities of which are carried on otherwise than for profit, but does not include any public or local authority.”

Furthermore, the following criteria must also be met in order to receive funding either the Strategic Partner Programme or the Innovation Excellence and Service Development Fund:

	Your organisation must work in England. The devolved administrations of Scotland, Wales and Northern Ireland have their own arrangements.
	Your organisation should be a corporate body or have a formal constitution if not incorporated. A corporate body would have a Board of Trustees or Directors. An unincorporated association would have a management committee.
	If your organisation has charitable objects, and registration is required, the organisation must be registered with the Charity Commission. See www.charity-commission.gov.uk for information about charity registration. Exempt or Excepted charities and those with income below a set level may not have to register.
	Your organisation must have an Equal Opportunities Policy and Health & Safety Policy.

The new funding programme opened on 21 July 2008 and all first stage applications must be submitted by 8 September 2008. Stage 1 notifications will then be made 3 October 2008.

The closing date for Stage 2 applications will 14 November 2008, and Stage 2 decisions will be made by 31 January 2009.

It must be noted that although the funding scheme design has changed, grants under the Third Sector Investment Programme will continue to be made using powers provided by s.64 of the Health Services and Public Health Act 1968. However, the Third Sector Investment Programme has advised that PCT’s and SHA’s can continue to use their delegated s.64 power to award grants. They are not required to follow the new grant application criteria or process the DH has introduced, nor do they have to use the same funding scheme/strand names. PCT’s and SHA’s are not bound by the scheme design the DH chooses to operate and can use processes and criteria that meet their own local needs.

Detailed information on the Strategic Partner Programme and the Innovation Excellence and Service Development Fund, including further detail on eligibility, funding streams, details on the application process and guidance can be found in the respective Information pack for third sector organisations, which is available at the DH website.

For More Information Contact:
Pav Jawanda
TPP Law Limited
53 Great Suffolk Street
London SE1 ODB

t 020 7620 0888
f 020 7620 0778
e info@tpplaw.co.uk

Email: Pav

Charity Commission: click here

Department of Health, Third Sector Investment Programme: click here

To view the full PDF version of this report please click here

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