From April 2005, the Government will make it clear that voluntary organisations can include an element of core funding when bidding for projects. They will also be able to bid for longer-term funding if they can promise concrete outcomes.
The Department for Education and Skills intends to reduce the number of grant programmes it operates by combining them. A consultation on this will begin next spring and grants should be rationalised in time for the 2006-07 financial year.
Voluntary sector organisations welcomed the proposals, which are contained in the document Working with Voluntary and Community Organisations to Deliver Change for Children and Young People. Susanne Rauprich, chief executive of the National Council for Voluntary Youth Services, said: "We believe this will be an important document for ensuring that the sector's potential will be fortified and not lost within the new structures."
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