Fairer funding pilot shows positive impact, while challenges remain
/This article was featured in the SCDC Weekly - 26th November
A Scottish Government pilot has shown the positive impact multi-year funding has on third sector organisations providing essential support to their communities.
As part of the Programme for Government 2025-26, the Scottish Government launched a Fairer Funding Pilot that provides multi-year funding to third sector organisations, prioritising those that deliver frontline services and tackle child poverty.
Findings published in a new report show that a majority of organisations felt the pilot had made a difference to staff recruitment, organisational stability, and the ability to plan for the future.
This stability and security was a commonly mentioned benefit, with one respondent saying that "this has reduced uncertainty, supported staff retention, enabled more strategic planning, and allowed us to give other funders confidence around match funding."
Challenges remained, however, with some respondents noting issues around a lack of inflationary uplifts, and second year funding remaining dependent on an agreed Scottish Budget - issues that mirror funding concerns outside of this pilot.
A sustainably resourced third and community sector is essential if these organisations are to be able to continues their vital work, and play their part in public service reform as outlined in recent announcements.
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