Funding news

09/02/05 - Survey slams statutory funders

Government funders are getting worse at paying charities' full costs for contracted services, according to an Acevo survey.

Despite Chancellor Gordon Brown's 2002 pledge that all government departments would adopt the principle of 'full-cost recovery', the snapshot of 70 chief executives suggests few have taken any notice.

One-third of respondents said that adherence to full-cost recovery had got worse, with just 18 per cent saying it had improved. Statutory funders have been given a deadline of April 2006 to implement the Treasury's commitment to full-cost recovery, but 49 per cent of the chief executives questioned criticised current practice. Only 3 per cent thought it was good.