The VCSE sector plays an important role in employability provision, delivering integrated, specialist services that providers in other sectors will not or cannot deliver. However, reduced funding and increased demand has led to a protracted period of significant instability for the sector.
Many organisations have responded to these pressures proactively. However, there is a serious danger that the more VCSE organisations focus on revenue generation, the more they will lose the distinctive characteristics which make them effective providers. Most concerning of all is the evidence of VCSE organisations closing or scaling back services, leading to greater levels of unmet need.