NORTH WEST REGIONAL COMPACT CONSULTATION DOCUMENT

A FRAMEWORK FOR STRONG AND EFFECTIVE RELATIONSHIPS BETWEEN

THE THIRD SECTOR AND PUBLIC SECTOR IN THE NORTH WEST.

FOREWORD by Liz Meek, Regional Director, Government Office

for the North West.

I am delighted to be contributing to the Regional Compact. The Government Office

views the third sector as a key partner in the design and delivery of services that
communities want.

The Compact aims to improve partnership working and relationships between

regional organisations within the third sector and the public sector in the North West..
It provides a basic framework setting out the main principles and commitments that
these relationships can be based on. This Compact supports the National Compact
which the Government published in 1998 and the local compacts which already exist
or are being further developed locally. The regional Compact is not designed to
supersede local arrangements and compacts but it is a partnership agreement
between the regional organisations that are highlighted within the document.

We hope that this Compact can help you with policy development in your own
organisation and improve the sharing of best practice. A Regional Compact Group,
made up of representatives of all partner organisations, will take overall responsibility
for monitoring the Compact’s effectiveness over time and formulating an action plan.
The group will meet to bring together the key issues and identify how best to respond
to these. Details of the make up of the group are included in the document.

Government Office North West is committed to upholding and implementing the

Regional Compact.

Liz Meek
INTRODUCTION
This document is intended to prompt discussion about a proposed regional compact
for the North West.

It contains a proposed regional framework, linked to the national compact and codes
of good practice. The proposal is supported by a regional compact working group
that includes:

North West Development Agency (NWDA) North West Network (NWN)

Voluntary Sector North West (VSNW) One North West (1NW)
The Learning and Skills Council (NW LSC) Five Counties Partnership (5CP)
Government Office North West (GONW) NHS North West (NHS NW)

The Compact is the national agreement between government and the third sector to
improve their relationship for mutual advantage and community gain.

The purpose of the proposed North West Regional Compact is to help build effective
partnership working that supports and makes best use of a thriving third sector in the
North West. The working group believes this is a joint responsibility of both third sector
and public sector partners. This is founded on the recognition that a thriving third sector
is of benefit to public sector agencies, agreed regional objectives, and the people and
communities of the North West.

A North West Regional Compact would provide:

• a solid foundation to strengthen the third sector’s contribution to the region, and
• an effective framework for public sector engagement with the third sector and the
communities on whose behalf we work.

Why now?
The development of a regional compact in the North West could hardly be more timely.

Key changes include: New lead personnel within the region (GONW, VSNW), the NHS
modernisation agenda, potential changes in the structure of the LSC, the end of the
Regional Assembly and increased responsibilities for NWDA (e.g. European
programmes, transfer of regional planning and transport powers), the increased regional
influence of local authorities through 4NW (the new Leaders’ Forum), and the increasing
emphasis on LAAs1, MAAs2 and sub-regional delivery of regional programmes.

However, the two most important regional considerations are possibly:

• the need for all partners, as a consequence of increasing economic pressures, to
effectively work together; and

1
The recently established North West Improvement and Efficiency Partnership (NWIEP) will support
local authority and partner delivery of local area agreements (LAAs) across the region.
2
MAAs or multiple area agreements and are closely linked to the development of City regions. In the
North West these are currently the city regions of Manchester, Liverpool and Central Lancashire.
• the development, over the next 18 months, of the new Single Regional Strategy.
Consultation
It is important to note that this is a consultation document and is intended to support
discussion between potential partners and stakeholders. We have not tried to list all the
undertakings of the Compact and the five codes. Instead we have sought to outline a
framework that incorporates the codes and outlines the headline commitments that would
be expected of third sector organisations and public sector agencies.

The five codes of good practice are:

• Black and Minority Ethnic Voluntary and Community Organisations
• Community Groups
• Consultation and Policy Appraisal
• Funding and Procurement
• Volunteering

The publication of this document marks the beginning of a formal consultation process
that will close on Wednesday, 4th February 2009. You will note that after each sub-
section there are a series of questions which we would welcome your response to and
will help shape your thinking.

The lead contact for discussion and consultation is Eamonn Greene. Eamonn is working
on a short term secondment from Government Office North West, and will be based at
Voluntary Sector North West (VSNW) on a regular basis.

Contact details:
Eamonn Greene, VSNW, Ardwick Green North, Manchester, M12 6FZ
Tel: 0161 276 9305; Email: compact@vsnw.org.uk

Responses throughout the consultation period are encouraged. Written responses

should be sent to the above mail or email address.

This consultation document is available in alternative formats on request.

Benefits of a regional compact
The following is based on the Commission for the Compact’s analysis of current
regional Compact work: The South West (Regional Compact winner, November
2008), Yorkshire & the Humber and the North East have developed formal Regional
Compacts; the East of England has developed a Compact action plan. The West
Midlands and the South East are currently developing regional compacts.

Key benefits are:

• Increased awareness of the third sector at a regional level
• Better understanding of third sector specific barriers to regional working
• Joined-up cross-sectoral working and good practice sharing
• New partnership working
• Increased engagement in regional working
• Greater involvement of BME groups

North East
Besides partnership work on a North East Commissioning and Procurement Action
Plan (a key part of implementing the North East Compact), the North East
Development Agency have recently committed significant investment towards
volunteering as a pathway back to work to tackle long-term unemployment.

“the Compact... will provide a solid foundation to strengthen the third sector’s
contribution to the region, and to achieving our new Regional Economic Strategy”
– ONE North East.

South West
The South West Compact partly acts as a forum to assess and support the progress
of local Compacts in the region. The relationship of local Compacts can be
significant.

“[the regional Compact] reminds us what good practice is concerning partnership

work” - Citizens Advice South West.
“The regional compact has helped the RDA to develop its relationship with the
region’s voluntary, community and public sector partners” – South West of England
Regional Development Agency.
“[Besides increased consultation response rates], the Compact has helped to
strengthen the relationships between ourselves and a number of regional agencies,
public bodies and funding organisations.” - Equality South West.
Context: The North West
The North West has a population of 6.9 million people and a Gross Value Added (GVA) of
over £110bn per annum, third only to London and the South East. However, there are
959,000 economically inactive people of a working age, second only to London. Poor
health (only South West worse) and health inequality are major factors. Nationally, just
under a third of North West local authority areas feature in the fifty worst performing,
according to the latest Index of Multiple Deprivation.

Real improvements have been made in recent years in economic

performance, health, education and crime, but the North West still
underperforms national averages and inequalities persist between different
parts of the region. Overall, the North West is the third slowest growing
region.

There are significant issues around transport and housing affordability. Our
population is ageing and the region is becoming more culturally and ethnically
diverse. International in-migration offers great opportunities but also brings
challenges for public service delivery and community cohesion.

The third sector in the North West

In terms of paid third sector staff, the North West has the fastest growing regional third
sector in the UK. Added to this are significant numbers (100,000s) of volunteers.

The third sector works across a wide spectrum of issues, which includes:
• Providing preventative health services
• Delivering and shaping services for Children and Young People
• Domestic violence support services
• Working with communities of place, interest, identity, and faith
• Legal, personal and financial advice services
• Delivering training and promoting learning
• Community transport services
• Supporting safer and more cohesive communities
• Working and campaigning on environmental issues
• Services for and/or delivered by older people
• Drug and addiction dependency work
• Housing, neighbourhood management, homelessness advice and support work
• Supporting people back into paid employment
• Helping social enterprises to get going
• Tackling inequality

There are now 64,000 paid third sector staff working for at least 31,400 third sector
organisations with a combined income, in the North West, of over £3.2bn3.

3
Further details and evidence sources are available from VSNW. Email: policy@vsnw.org.uk
Despite this, third sector employment in the North West (in comparison to national third
sector employment rates) is still under-performing.
Proposed North West Regional Compact

Shared Understanding

1. The North West Regional Compact is aimed at improving partnership working and
relationships between the Third Sector and the public sector in the region.4

2. We have designed the regional compact so that all partners understand the roles
and responsibilities of third sector and public sector organisations and the
common ground between them. The compact is based on a shared
understanding of the different but complementary functions of public and third
sector organisations.

3. The compact recognises that all partner organisations and the private sector
make a major contribution to developing the social, cultural, economic and
political life of the North West.

4. Partners recognise that third sector organisations are independent, not for profit
organisations, governed by volunteer trustee boards or committees. Many, but not
all, will be registered charities. Many won’t be registered charities and will be
community groups that are usually small, extremely modestly funded and grant
and volunteer dependant. They are value based organisations motivated by
principle, sometimes driven into existence by gaps in services. The sector is
varied in the areas in which it works, its activities and its users. Partners
recognise that an independent, diverse and effective third sector is vital to the
well being of society.

5. Partners recognise that the public sector is made up of those organisations

created through Acts of Parliament. They are responsible for developing the
social wellbeing, economy, environment and health of the general population.

6. Compact Partners :
• recognise the importance of working together
• value honest and open communication
• are committed to improving relationships with each other.

Question 1: Does this capture all the relevant points ? Anything else to add ?

4
The Third Sector is defined as local community and voluntary groups, registered
charities, foundations, trusts and the growing number of social enterprises and co-
operatives
Shared Values

Compact partners share the following values, which are considered to be equally
important.

• An independent, varied and successful voluntary and community sector, and the
ability and right of people to take action voluntarily to benefit their communities
and groups, is vital to the wellbeing of society.
• Effective consultation with all stakeholders builds relationships and leads to better
policies and better decisions.
• Partnership working based on good practice generally achieves more than
organisations working individually.
• Different organisations and different sectors have different ways of being held
responsible for their actions, but partners share a common commitment to
honesty, openness, sharing information (within the boundaries of the law) and
effective leadership.
• The ability and right of voluntary and community organisations to campaign and
speak on behalf of particular communities, including communities of interest, (for
example, groups of young people or religious groups), is welcomed and
respected.
• In the area of delivering public services, the Government, statutory organisations
and voluntary and community organisations have different but complementary
roles.
• A commitment to promote equal opportunities for everyone and to recognise,
respect and celebrate how differences strengthen the North West region.
• A recognition that because of the geography, scale and population of the North
West, particular effort is often needed to involve, represent and understand the
needs of specific groups and communities.
• A commitment to improving working practices, reducing the amount of work that is
repeated unnecessarily and increasing the efficiency of activities.
• A shared and equal responsibility among all partners to build and maintain the
regional compact as an effective way of strengthening and improving
relationships by supporting and maintaining the processes associated with it.

Question 2: Does this capture the key points ? Anything to add or remove ?
Monitoring and reviewing the regional compact

The regional compact has been developed by a working group made up of regional
public organisations and third sector networks. The group will take overall responsibility
for monitoring the compact’s effectiveness and proposing changes to the compact itself.
This group will meet twice a year.

Partners recognise that the regional compact is not a one off document and is part of a
process for continuously improving relationships and partnership working between the
government, statutory agencies and voluntary and community organisations. The
Regional Compact group will prepare and review a framework for action for putting the
regional compact into practice.

Members of the Regional Compact group will get feedback from their organisation or
network on the compact. Regional voluntary and community sector networks may use
their annual conference, annual general meeting or other appropriate event to report and
get feedback from the wider voluntary and community sector on how the regional
compact works. Other partners will use reporting and feedback systems appropriate to
their own organisations.

Representatives on the Regional Compact Group will promote the compact within their
organisations and share information with staff and members. They will try to make sure
that staff within their own organisation understand the compact and are working with
other partners in line with it.

The Regional Compact group will develop appropriate standards by which the
effectiveness of the regional compact can be measured every year. Once they have been
agreed, these will be included in the regional compact itself.

If the regional compact is not followed this should be reported to the appropriate partner
organisation which has a duty to share this information with members of the regional
compact group at a regular meeting or between meetings. These cases will be
considered as part of the annual monitoring review and reporting process. If there is a
disagreement between the compact the following process will apply:

• The partners involved in the disagreement will try to settle matters between
themselves. If this does not succeed :
• The compact group will try to mediate to settle the disagreement
• If this fails the matter will go to the National Compact Mediation Service or
another independent mediator that partners agree to.

All partners are committed to settling disagreements and learn from failures and
mistakes.

Question 3: Will this support an effective and worthwhile regional Compact? Is

more needed?
Equality and Diversity

Compact partners recognise that the North West has a diverse population. This means
that we are different from one another and that this difference adds value and depth to
the region resulting in a positive, social, economic and cultural effect on the region. The
partners agree to value difference by practising and promoting equality and diversity.

Compact partners will promote equal opportunities for everyone in the North West.
Working with the North West Equality and Diversity Group, the partners will aim to :

• End unlawful discrimination

• Work with equality strands (BME, disability, race, sexuality and faith) and
communities to provide equal opportunities for everyone and to tackle
discrimination together
• Produce and work to an equality and diversity code
• Promote cohesion and social inclusion
• Recognise that working in partnership with the third sector can be an effective
means to:
o support social inclusion
o support social regeneration
o tackle poverty
• Partners will adopt the national BME code of practice

Question 4: Any specific comments?

Funding and Resources

1. Partners agree to improve the funding relationships between each other, and to
work together to make sure that national decisions on funding and resources are based
on a full understanding of the needs of the North West. Partners will try to make sure that
the region receives a fair share of national resources.

2. Partners will develop a funding code to provide a clear framework for effective
funding relationships. It will include the main principles and values summarised below.

3. All partners agree to do the following.

• Review the balance between outcome and output needs in funding

relationships.

• Make sure there are clear processes for providing funds, so that all
appropriate organisations have a fair opportunity to secure funding and
contracts.

• Adopt best practice in managing funding programmes, including publishing

assessment standards, providing feedback on unsuccessful applications and
providing advice and support.
 • Share information and work with other funders to reduce the amount of work
that is repeated unnecessarily, streamline funding processes and develop
common approaches to the benefit of applicants.

• Encourage full cost recovery principles in preparing project budgets and

funding applications.

• Aim to develop funding programmes and processes which improve the

financial stability of organisations, and support long-term planning. Where
possible, funding agreements should last for at least three years, and
preferably longer periods whenever possible.

• Inform voluntary and community organisations about changes to funding

arrangements as soon as possible, and well before the end of any grant
period.

• Make sure that good quality assurance and management systems are
included in their programmes, schemes and projects.

• Consider other support methods – for example, rent-free or reduced-rate

premises, free or reduced-rate training, seconding staff and donating
equipment.

• Make sure that funding arrangements and procedures are clear and
understood at the beginning of any funding period.

• The sector should provide support for commissioning processes where

appropriate

Question 5: Anything else to add or change ?

Volunteering

Compact partners recognise that people have a right to be active in their communities
and value the important contribution that volunteering makes to the quality of life in the
North West by:

• Introducing different perspectives, skills, knowledge and experience to public and

voluntary sector services and to community activity.

• Promote inclusion

• Provide opportunities for training and experience and helping equip individuals to
employment

• Add significant value to public and voluntary sector services

• Involve the private sector in voluntary and community activity.

Question 6: Any specific comments on volunteering ?
Public Sector Bodies

Compact partners agree on the following undertakings by Public Sector Bodies.

1. To recognise, respect and support the independence of the third sector, including its
right within the law to campaign and to challenge policies.

2. To engage and work with third sector organisations to better understand the views of
citizens and communities and to create opportunities for them to influence policy
development and implementation.

3. Where a decision is likely to have a significant effect on the third sector, to consult
widely, appropriately and early enough, allowing a minimum of 12 weeks.

4. Aim to develop appropriate funding models and programmes which improve the
financial stability of organisations and support long term planning. Where possible,
regional partners will look to develop funding agreements that should last for at least
three years.

5. To encourage full cost recovery principles in preparing project budgets and funding
applications.

6. To make payments promptly and in advance of expenditure (where appropriate and

necessary) in order to achieve better value for money.
7. Where possible minimise bureaucracy associated with application, qualification,
monitoring, report and audit processes and encourage adoption of good practice
frameworks so that they are appropriate to the level of funding.

8. To commit to undertake best practice in the promotion and celebration of

volunteering.

9. To recognise, value, promote and work with the full range of the third sector, in line
with public sector bodies’ equality and diversity policy statements.

10. To create opportunities for effective third sector representation at regional decision
making and policy planning boards and networks thus providing structures for continuous
third sector inclusion, beginning at the initial stages of regional policy. In addition this will
be augmented by a process of further consultation with the wider third sector in the
region.

Question 7 (for third sector organisations): Would the above fully enable you to be
an effective partner?

Question 8 (for public sector organisations): Are the above aspirations realistic?

Question 9 (for public sector organisations): Should the public sector do more? If
so, what?
Third Sector Organisations

Compact partners agree on the following undertakings by the Third Sector.

1. To operate through open and accountable organisations, which aim to maintain high
standards of service and governance.

2. To ensure policy positions within the sector reflect the needs of individuals, groups and
communities.

3. Third sector organisations respect the role of public bodies to make and adhere to
policy decisions and to manage public expenditure appropriately.

4. On entering a public sector financial agreement third sector organisations will

ensure they are eligible, have the capacity to deliver, have clear lines of
accountability and, appropriate to the level of funding, clearly set out the outcomes which
will be delivered and have a real understanding of cost bases and the proper application
of full cost recovery.

5. Appropriate to the level of funding, have robust monitoring, evaluation and financial
management systems which provide accurate and timely information to regional funders
and account for public funds and encourage adoption of good practice framework.

6. To implement and maintain best practice in the promotion, development and

celebration of volunteering.

7. Embrace diversity and work to promote community cohesion, reduce inequalities and
tackle social exclusion.

Question 10: Is this enough to realise the potential of the third sector to contribute
to a shared regional agenda?

Question 11: Are these aspirations realistic?

Question 12: Should the third sector do more? If so, what?

Proposed next steps

Once the regional compact has been adopted, it will include or be supported by the
following information :

• A list of useful resources (organisations, publications, toolkits and websites) which

will help individual organisations apply the compact

• A framework for action which identifies the main activities that the Regional
Compact Group and partners will carry out. This will include a communication
strategy to support partnership work and promote the regional Compact.

• The regional compact will adopt national codes and guidelines. However where
the national code does not meet the North West needs, partners will develop a
commentary explicitly stating variance from the national code. If there is
significant variance a regional code will be developed.

Consultation deadline: Wednesday, 4th February 2009

Contact details:
Eamonn Greene, VSNW, Ardwick Green North, Manchester, M12 6FZ
Tel: 0161 276 9305; Email: compact@vsnw.org.uk

Please note that responses throughout the consultation period are encouraged.
Glossary of Terms
BME groups
Black and Minority Ethnic third sector
groups.
Community Cohesion
Promoting greater knowledge, respect
and contact between various cultures
and establishing a greater sense of
citizenship.
Full Cost Recovery
Full costs are the direct costs of the
project or service plus a relevant
portion of organisations overheads.
Governance
The systems and processes for how
an organisation is run, including how it
conducts its business.
Public Sector
All local statutory public sector
organisations including the local
Compact guidance and Codes: www.thecompact.org.uk
• Codes of Good Practice:
• Black and Minority Groups
• Community Groups
• Consultation and Policy Appraisal
• Funding and Procurement
• Volunteering
• Code Champions
• Local Codes of Good Practice
• The Concise Compact Guide
authority, primary care trust, other
NHS trusts, emergency services,
colleges etc. The national public sector
comprises government, non
departmental government bodies such
as regional Development Agencies
and various other statutory bodies.
Stakeholder
Person or group that has a vested
interest in, and is potentially able to
influence, the work of an organisation
or the delivery of a service.
Third Sector
The range of institutions which occupy
the space between the State and the
private sector. These include small
local community and voluntary groups,
registered charities both large and
small, foundations, trusts and the
growing number of social enterprises
and co-operatives.