Stretched beyond the limit – but not beyond repair 

For 20 years, The ALLIANCE has listened to member voices to help protect and improve Scotland's care services.

For the past 20 years, one of the ALLIANCE’s greatest strengths in the policy arena has been the size and breadth of our membership. Input from our members has helped shape our approach to some of the biggest issues of the day, such as helping create Scotland’s dignified and respectful social security system, supporting health and social care integration, and campaigning for the roll out of Self-directed Support. 

More recently, fair funding for the third sector has become a major concern for our members. Following on from the pressures of the COVID pandemic period, the cost-of-living crisis that truly took off in 2022 heaped further difficulty onto third sector organisations. 

In September 2023, we published our “Stretched to the Limit Report”, highlighting growing pressure on our members, with 49% describing themselves as financially insecure, even as 84% reported increased demand for their services. When we checked again at the end of 2025, that number had grown to 64%, leading us to conclude the sector was now “Stretched Beyond Limit”. 

In developing both of our “Stretched” reports, the voice of the ALLIANCE membership was invaluable. Although the figures themselves are stark, it was the comments submitted alongside them that really drove home how precarious the situation is for many third sector organisations. Take the following example:  

“As an organisation we have restructured, reduced our costs, and changed work practices to become more efficient. We cannot do anything more without reducing services or staff.” – ALLIANCE member 

On reflection, this isn’t just a warning about third sector services. As the Scottish Government embarks on a dramatic public service reform agenda, it’s an insight that feels just as apt for statutory services. Even where efficiencies and structural reform are clearly necessary, they can only go so far before all that’s left to cut is core service provision – something we simply cannot afford to do whilst demand remains so high. 

The greatest efficiencies and savings don’t come from changing where a crisis service is delivered, or who by, but by making sure people don’t reach crisis point in the first place. That’s why it remains vitally important to invest in the proven, community based and high-quality preventative services so many third sector organisations deliver every day, a point we and our partners recently re-emphasised through a joint statement. 

Our work to raise the alarm about the sector’s sustainability is having an impact. It led to a meeting with First Minister John Swinney last year. Then, when the newly elected Scottish Parliament held an early debate on the Scottish Government’s proposal for a formal agreement with the third sector, MSPs from three different parties quoted either directly from our “Stretched Beyond Limit” briefing, or made points clearly drawn from it. 

Welcome as this engagement is, much more remains to be done. As the Scottish Government moves ahead with public service reform, the ALLIANCE will continue to be a strong voice for the third sector.  

At the end of this five-year term of the Scottish Parliament, we hope a third sector agreement that commits to multi-year funding will be in place, giving our members and the wider sector greater financial security. We also hope the third sector will be recognised as an equal partner in service design and delivery, working in partnership with the NHS and other statutory service providers, rather than at their mercy. 

As we work towards those aspirations, we know that the experiences of, and ideas from, our members will continue to help us make the case for change. We look forward to working hand-in-hand to deliver our shared vision of a thriving, sustainable third sector.  

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