Edinburgh’s health and social care partnership has proposed a “devastating” £4.5m funding cut for 64 charities, giving just 90 days’ notice to the affected organisations.

The Edinburgh Integration Joint Board, which directs the city’s health and social care partnership, has proposed plans to cut its grants programme next year and bring forward the funding’s scheduled end date by two months.

Recipients of the funding have criticised the “devastating” funding cut, with one community charity, the Ripple Project, describing the 90-day notice period as “wholly unprofessional”.

The EIJB grants programme was established in 2019 as a three-year scheme, which awarded 64 voluntary organisations a share of an annual £5m fund.

The programme was extended due to continued disruption from the Covid-19 pandemic and has been running for nearly six years. 

The fund was later reduced to £4.5m as part of the EIJB’s 2024/25 savings plan and was due to close at the end of March 2025, but documents show the EIJB is planning to end the funding two months early.

A report from EIJB outlines proposals to scrap the programme in 2025/26 and bring forward the scheduled end date to January, by issuing a 90-day notice of cancellation to all grant recipients.

It says the move comes after the EIJB forecast a requirement to make a further £50m of savings in the 2025/26 financial year.

The report says that following a review of the programme, the EIJB concluded that the grants programme is “no longer considered to be the best use of resources in the prevailing financial climate”.

It adds that without either a substantial increase in income or reduction in expenditure, the EIJB will be “unable to meet its fundamental responsibilities which will cause the partners to breach their statutory obligations and deliver core services”.

Rachel Green, director of the Ripple Project, which supports people of all ages facing social inequalities, said the proposed disinvestment would be “devastating” for the charity on many levels.

The Ripple Project received a total of £87,703 from the EIJB in 2023/24, the partnership’s report shows.

Green said that losing this funding will “result in an additional disinvestment to our area of over £400,000 if the Ripple cannot operate, as we would have to return funding that has already been committed to the rest of the organisation”.

She added that the EIJB has been one of the few funders to cover the charity’s core costs, such as building or operating costs. 

Green also criticised the 90-day notice period given to affected charities, saying this was “disrespectful and does not give us time to approach other funders”.

She said the charity operates within a three-year funding strategy to remain stable, adding: “We cannot however have foreseen an in-year cut, as this is wholly unprofessional. The lack of foresight that the EIJB are showing is unbelievable.”

Waverley Care, which provides support to people living with HIV, received £177,754 from the EIJB grants programme in 2023/24, EIJB’s report shows.

Grant Sugden, chief executive of Waverley Care, said the cut would have a “major impact” on the people it supports, saying: “With these cuts at such short notice, many of our service users risk losing critical support networks, potentially leaving them isolated. This highlights the urgent need for sustained funding in HIV-specific care.” 

Rosie McLoughlin, chief executive of Voice of Carers Across Lothian, which received a total of £48,766 in the last financial year from the programme, urged the EIJB to delay its decision to allow for “meaningful engagement with carers and third sector organisations” and a “comprehensive impact assessment”.

She said: “The proposed cuts to the EIJB grant programme are a double blow for carers. They would result in over £200,000 being cut from direct carer services, but carers also heavily rely on the community groups funded through this programme to complement the care they provide.”

Pat Togher, chief officer of the EIJB, said the proposed changes to its grants represented less that 3 per cent of the EIJB’s overall spend on the third sector, with the remaining savings consumed by the Health and Social Care Partnership.

He said: “The EIJB was required to close a £60m financial gap this year and is currently preparing for similar savings [in] 25/26. 

“We must make the necessary decisions to protect our core legal duties and protect our most vulnerable – such as providing care homes, applying adult protection/mental health legislation and preventing further drug-related deaths in the city.

“It is in this context that we must decide on how we now prioritise spend when faced with the gravity of the savings imposed and ensure longer-term sustainability.”