New research conducted by Durham University into the economic and social value of the sector and its contribution to population health and well-being.
Executive summary
West Yorkshire Health and Care Partnership (WY&H HCP) and Humber, Coast and Vale Health and Care Partnership, West Yorkshire Combined Authority, Yorkshire Sport Foundation, and Community First Yorkshire commissioned research led by Professor Tony Chapman, Durham University, on the structure, dynamics, and impact of the Voluntary, Community and Social Enterprise (VCSE) sector, including across the West Yorkshire and Harrogate geographic area.
The commissioners of the report were of the view that the economic and social value and scale of the sector has been hiding in plain sight and wanted to bring this much more clearly into view. The particular interest of the commissioning Health and care partnerships has been to align the work of the sector more systematically with the energies of the public and private sectors, and in recognising its inherent and unique shape, dynamics and value, invest in the sector to enhance health and well-being outcomes for communities and individuals in the region. The report also aids understanding of the investment and support required by the VCSE in order to strengthen its ability to respond as part of the system as a whole
The research highlights the contributions made to the economy and the health and well-being of people who live in West Yorkshire and Harrogate, which are bigger and more varied than might have been imagined.
Key findings:
The VCSE sector in West Yorkshire includes around 14,900 registered and unregistered groups supporting local people in many areas of their lives from youth groups, ageing well support, sports, and wellbeing clubs to name a few.
VCSE sector organisations make up about 3.4% of all businesses.
The biggest VCSE organisations (with income over £1m) absorb about two thirds of sector income while micro VCSE organisations (with income below £10,000) receive less than 1 per cent. Sector income is about £1.46 billion while expenditure is at a similar level of £1.44bn
The sector employs around 43,100 full time equivalent posts, which makes up approximately 3.7% of employment across the area.
There are an estimated 147,000 regular volunteers in the VCSE giving their time and energy to helping people to live their best life possible, around the clock, 365 days per year.
The sector is larger than the finance and insurance industries, and larger than the arts, entertainment and recreation sector.
The size and structure of the sector has remained similar, and the proportion of people who regularly volunteer has remained about the same for at least the last two decades demonstrating its ability to adapt and remain relevant and be resilient over time.
The research sets out the significant contribution made by the VCSE sector to people’s health and community health and well-being.
There are four key areas of activity which consume most of the VCSE sector’s energy and where the sector feels it has the most impact: 62% of VCSE organisations work in the field of personal health, 52% in personal wellbeing, 42% in community wellbeing and 27% on financial security. These percentages add up to more than 100% because VCSE organisations often feel they make an impact on several issues.
The research shows that the VCSE sector is large, varied in composition and purpose and has significant economic and fiscal benefits to the local economy as well as producing use values for beneficiaries.
The sector not only contributes to financial savings for the NHS and other public services but produces immediate benefits for many thousands of people accessing their help and support.
The report acknowledges it is challenging to accurately measure the total economic and social impact of the sector. Whilst it is relatively straightforward to capture the economic value of the sector (i.e. the direct measurable financial value of the sector) and make credible estimates around the added value/ multipliers (economic, fiscal and use values), the social value created by the sector is harder to quantify:
It is possible to generate reliable estimates on the financial or proxy-financial economic “energy” that the sector directly injects into its work in local areas (including robust valuations of sector expenditure, volunteer time and in-kind support). The total value of this energy in West Yorkshire is £1.6bn p.a.
The combined energy the VCSE sector employs in West Yorkshire has a multiplier effect upon the local economy, contributes to fiscal savings for public sector bodies and produces immediate use values for beneficiaries. These multiplier effects are calculated to be up to £3bn p.a.
The social value the VCSE produces cannot be defined statistically due to the complex nature of its makeup and difficulties in comparing practices and outcomes. It is nevertheless expected that this added value is at least the value of the energy invested by the sector ie – social value created by the sector which amounts to at least £1.6bn p.a.
The total added value which the VCSE sector produces is therefore the equivalent of up to 3.8 times the direct energy put in. The total equivalent estimated financial value would be up to £6.2bn p.a.
"When something is so deeply embedded in society, there is a tendency to take it for granted – perhaps even see it as ‘normal’ and thereby diminish the value of its significance. But if the work of the VCSE sector was not valued by the community – it would not exist."
Download or read the report: the structure, dynamics and impact of the VCSE in West Yorkshire