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Social enterprises form a vital part of the NHS family, delivering health and care services all over the country while reinvesting profits in local communities. Despite this huge contribution, the Government has not provided funding for social enterprise staff in the recently negotiated NHS pay deal – treating many thousands of staff unfairly when they are just as committed and passionate as those working in any other NHS setting. We’ve been calling for change everywhere from Sky News and the Independent to the Health Service Journal and Nursing Standard but we need to make more noise. You can help us tackle this by adding your name to the petition for urgent Government action: https://petition.parliament.uk/petitions/638701 Health Secretary Steve Barclay pledged to implement the NHS pay deal for ‘all staff’ on Agenda for Change contracts, but his Department has not yet found this money for those working in social enterprises under the same contractual terms and conditions. We’ve asked the Secretary of State to meet with us - as well as the NHS Confederation, NHS Providers, the Local Government Association, the Association of Directors of Public Health and the Independent Healthcare Providers Network - so we can find practical solutions before staff, services and patients are put at risk. Peter Holbrook CBE, chief executive of Social Enterprise UK, said: “Social enterprises are a crucial part of the NHS family, delivering over a billion pounds of services and employing many thousands of staff while reinvesting any profits in communities. Health Secretary Steve Barclay recently said that he would implement the NHS pay deal for all staff on Agenda for Change – but he has yet to come up with the money, putting these organisations and their staff in an impossible position. “We still expect the Department to take urgent steps to solve this - as they did previously in 2018 - before staff, services and patients are adversely affected. Just the ten largest social enterprises delivering NHS services employ around 10,000 staff, who will be treated unfairly unless the Government acts now. Some of these employers will seek to pay the 22/23 ‘bonus’ their staff deserve, even if the Government doesn’t fund it – but some simply don’t have the money to do so, meaning this will put services and patients at risk. The Department must deliver on the Health Secretary’s words.”

On Wednesday 24 May Social Enterprise UK (SEUK) brought colleagues, partners, peers and collaborators from across the sector together with politicians and policymakers in the House of Lords to discuss how British business can deliver better for our economy and society. With a general election approaching, now is the time to push for progress and make the case for a different way of doing business - one that centres the incredible work being caried out by the tens of thousands of social enterprises, cooperatives, community companies and other purpose-led businesses which are delivering for Britain. Opening the event, SEUK’s chair Lord Victor Adebowale explained: “We are significant, and yet we don’t have the voice that we should have for the major contributions we make to the current economy and all we could do in the future.” He set the scene for the challenges facing the UK economy, as widening inequality and the climate crisis transcend political divisions, making a rallying cry for all parties to address the fundamental structures of how we do business in order to address these burning issues. He issued an invitation and a challenge to raise the profile of the transformative impact of social enterprises and other mission-led businesses, which renowned economist Kate Raworth then argued must be at the heart of political and economic discussions. Changing business structures ‘Doughnut Economics’ author Kate Raworth proposes a radically different way of approaching the economy, moving from a system based on endless growth to one that meets the needs of all people within the means of the living planet. She said: “The aim is to create a safe and just space in which humanity can thrive, and to get there requires a fundamental rewiring of the economy and the way in which businesses themselves are structured.” In conversation with Victor, Kate posed the question of how businesses should be owned and designed in order to serve the needs of people and planet – and, in many ways, the answer to this could be found in the organisations represented in the room. Social enterprises, co-operatives and other purpose-driven business models offer the proof of concept needed for a new economy. Presenting the ongoing crisis of inequality and climate breakdown as an opportunity to show people the possibility of a different future, Kate urged: “Let’s make this visible, seed it and spread it and help people see: this is a not just viable but a crucial way of redesigning our economy in service of the future.” Kate was joined by her Doughnut Economics Action Lab (DEAL) colleague Erinch Sahan, whose work looks at challenging the deep design of business. He outlined how traditional models of ownership, governance and profit distribution place businesses in a straitjacket, with everything reliant on financial returns and maximising shareholder value – while social enterprise offers more diverse structures and innovative ways of working. He concluded that: “Social enterprise is the experimentation ground for those ideas that will hopefully take root in wider business and the future of the world economy.” Join the campaign This event kicks off a new campaign to shape the future of the British economy, bringing together champions of change from across business sectors and political spectrums, to elevate the profile of our growing movement through until the next election and beyond. As we get closer to 2023’s general election, we will ramp up activity to ensure that politicians, policy-makers and other key decision makers hear the voices of organisations that offer real solutions to build a fairer and more equitable country. Join our campaign and help us transform the potential of British business. More information can be found here >> https://www.socialenterprise.org.uk/business-plan-for-britain/ Thank you to all the organisations, MPs and Peers who attended this event and especially to our campaign partners:

Social Enterprise Barometer reports are published quarterly to provide a snapshot of social enterprise performance as well as how specific economic and political developments are affecting social enterprises. The April 2023 survey of 96 social enterprises found that overall, projected growth figures are up on last quarter. Projected turnover and profit figures are also positive, with 40% anticipating turnover will grow and 77% expecting to break even or make a profit this financial year. Compared with last quarter, the new report shows a significant decrease in the number of social enterprises expecting to contract and a modest increase in those expecting to grow. Social enterprise turnover positions remain more positive than for other forms of business, while growth expectations are less confident but slowly increasing toward mid-Covid 2021 levels. Although social enterprises are more resilient in crises than other forms of business, as shown in Covid lockdowns and the 2008 financial crash, recovery is also slower. Social enterprises cite a range of reasons for this, including uncertainty in funding and contract income, to ability to meet increased staffing costs. Rising operating costs in the ongoing economic crisis remain a concern, with more than half of social enterprises forecasting staff cost increases and 41% expecting bigger energy bills. Staff numbers have grown consistently over the last two quarters, despite most respondents reporting higher staff costs. Social enterprises report increasing their staff pay to match inflation as “critical” – but also note varying capacity to do so, minimal impact of pay increases to cover the full impact of cost increases, and pressure on staff due to rising demand when resources can’t keep pace. A few social enterprises reported that increased costs have impacted their delivery of goods or services. Other themes that emerged were the recognition of staff burnout, a reduction in profit and a reduction in investment. CLICK HERE TO READ THE FULL REPORT

Social Enterprise UK has collaborated with the Co-operative Party, to produce a new report exploring how we can make the UK the best place to start an alternative business. Alternative businesses, including social enterprises and co-operatives are key for delivering shared prosperity and building a more resilient economy. However, many of these businesses face distinct challenges that can hinder their development and growth. This new report puts forward an ambitious yet practical policy recommendations, aimed at nurturing those businesses that believe in more than profit. Through improving access to finance, simplifying governance, and building networks, we can create a richer, more diverse business community that will address the entrenched challenges our country faces. CLICK HERE TO READ THE ALTERNATIVE BUSINESS REVIEW

Commenting on the May 2023 local elections, Peter Holbrook CEO of Social Enterprise UK said: Social Enterprise UK sends warm congratulations to candidates who were elected during last week’s Local Elections. We have seen significant shifts in council make-up across the country. People want their local councillors to ensure community services work for them, that local issues are addressed, and that democracy delivers. Social enterprises are playing an increasingly valuable role in supporting local communities, delivering economic prosperity, and bringing people together to address local challenges. We hope that newly elected representatives will take time to engage with local social enterprises and support them through this period of economic uncertainty.

We pass on our very best wishes to His Majesty King Charles III and all those celebrating the coronation this weekend. The King has a long association with social enterprise, founding Duchy Originals as a social enterprise which donates 100% of profits to supporting young disadvantaged people right across the UK. Through the Prince’s Trust, he has enabled thousands of aspiring social entrepreneurs to get their ideas off the ground and create positive change in their communities and beyond. We thank him for his dedication to supporting the next generation of social entrepreneurs and his commitment to responsible business practices and the protection of our natural world.  

More than a million businesses in the UK could be supported to formally transition to social enterprises, based on their current engagement with social issues, according to new research. Social Enterprise UK’s (SEUK) newly-launched ‘Transitions’ report reveals that as many as a fifth of SMEs in the UK aspire to make a positive social impact – but are not currently operating formally as social enterprises. This means more than a million organisations have the scope to transition to social enterprise status, and contribute more to the economy and society in doing so. As a result of its findings, SEUK is encouraging businesses in the UK to consider their status and learn more about how they could benefit from transitioning to a new model. Operating as a social enterprise allows a business to lock in its social and environmental purpose, ensure profits benefit that purpose, and enjoy wide-ranging benefits for staff, customers and clients by reaching new markets and developing new products and services. Social enterprises also regularly enjoy enhanced reputations, customer loyalty and employee engagement, whilst having wider access to funders and financers motivated by social impact. Peter Holbrook, CEO at SEUK, said: “Whilst we acknowledge the fantastic work of existing social enterprises in benefiting our economy and society, our research identifies that a huge number of other businesses are not maximising the opportunities available to them from social enterprise models and solutions. “No social enterprise is the same, either, so there are a variety of options for companies wishing to transition – for example, a small tech firm may be best suited to a co-operative model, employee ownership may fit a bigger retail business or a trust model could work well for a business running a heritage asset. “Therefore, we encourage businesses to find out more and understand if transitioning to a new model is viable for them, so they can reach their potential and make an even greater difference to the world as a social enterprise.” Read the full report here

Social Enterprise UK (SEUK) are proud to be a delivery partner on the newly launched VCSE Contract Readiness Programme.  Delivered in partnership with the School for Social Entrepreneurs (SSE) and Voice4Change England, and funded by the Department for Culture, Media and Sport (DCMS) – the VCSE Contract Readiness Programme’s objective is to enable social enterprises and charities to compete alongside other organisations for public sector contracts. The programme is divided into two pathways – one for voluntary, community and social enterprises (VCSEs) and one targeted at public sector commissioners, with an initial focus on commissioners at central government departments. How to get involved - VCSE pathway This programme is a great opportunity for social enterprises and charities wanting to win government contracts to find out more about how to successfully apply for these opportunities.  There are a number of ways for SEUK members to take part in the programme from introductory webinars to more in-depth short and long courses designed to help organisations implement the practical steps to become procurement ready. Our friends at SSE are primarily managing the VCSE pathway and more information can be found on the SSE website. Click here to find out more about the VCSE pathway and eligibility criteria. Organisations can sign up to 'Government Contracts Revealed', the first public webinar in the programme which will introduce social enterprises and charities to public sector procurement. This will be suitable for those with little or no experience of tendering. Click here to sign up The first available public webinar is on 25 April with further dates in June. The Public Services Hub The Public Services Hub is an online platform, developed by SEUK as part of the programme, which hosts resources and opportunities to help advance the role of social enterprises and charities in public sector commissioning.  From government guidance to details on how to find contracts – the Public Services Hub is a great first port of call for social enterprises and charities interested in working with government and the broader public sector.  The Public Services Hub also holds resources for commissioners to help them better understand the benefits of partnering with VCSE service providers. Click here to visit the Public Services Hub  We will be sending out updated information about the programme as more elements of it become live.