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Over the last decade the social care sector in England has seen unprecedented demand coupled with funding cuts and workforce recruitment and retention challenges. The Covid-19 pandemic added more pressure to already stretched social care systems. Recent research at the University of Birmingham has been exploring the contribution of social enterprises to the adult social care sector. As part of this research, we analysed data from the 2019 and 2021 ‘State of Social Enterprise’ survey focusing only on social enterprises delivering social care services (‘care social enterprises’). We looked at any changes in the sector immediately before and after the pandemic. Overall, the survey suggests that the care social enterprise sector responded positively to the challenges of Covid-19. Between 2019 and 2021, most care social enterprises not only survived, but we found generally positive indications of growth and reports of diversification and innovation. Whilst the pandemic created challenges for the sector, including financial difficulties – with 32% of care social enterprises reporting that they drew on their financial reserves and 20% having increased borrowing in response to the pandemic - most (68%) did not pass any financial burden on to their service users. Many care social enterprises surveyed reported that their annual income had increased; with almost twice as many organisations reporting an annual income exceeding £1m in 2021 than had done in 2019, although the actual proportion reporting income exceeding £1m was relatively small (just under 20% in 2019), with medium income of £100,000. More care social enterprises also reported making a profit in 2021 (56%) compared to 2019 (44%). An overwhelming 81% of care social enterprises surveyed reported that they changed their processes and/or ways of thinking in response to the pandemic. As well as adapting in response to Covid-19, care social enterprises were found generally to be dynamic; in 2021, 48% reported that they had expanded into new markets and 62% had developed new products. Many also reported that they had expanded the reach of their services, with over three quarters (78%) operating across more than one local authority area in 2021 (compared with 59% in 2019). Similarly, the number of employees in care social enterprises increased between 2019 and 2021 from a median of five to twelve employees, and more than two-thirds (68%) expected their staff number to growth further. Whilst the number of staff grew, staffing was affected by the pandemic with 42% of care social enterprises reporting furloughing staff, 44% asked staff to take on additional roles, and over half provided or switched to remote working.  The most common objective of care social enterprises was reported as ‘supporting vulnerable people’ and one notable trend over the last two years has been the prioritisation of adult mental health and wellbeing. Whilst this is reflected in the entire social enterprise sector [1], with nearly a third of the sector prioritising adult mental health and wellbeing as a main objective, a more dramatic shift is visible in care social enterprises with adult mental health listed as a priority objective by 27% in 2019, and more than doubling to 59% in 2021.  This is congruent with increasing demand on NHS mental health services post COVID19 [2] and supports the notion of adaptability and resilience in recent years in the care social enterprise sector. Care social enterprises therefore appear to have responded well to the COVID-19 pandemic. They are widely recognised as driving innovation and as having real expertise around their communities. These qualities may make them well placed to fill some of the gaps in statutory care and support, and in turn gain recognition as integral stakeholders in health and care systems [3]. In recent years care social enterprises have therefore proven their ability to adapt and innovate in response to changing demands and challenges.  Furthermore, they have continued to grow and remain profitable in the face of crisis. By Kelly Hall, Kelly Hayward and Phil Kinghorn, University of Birmingham  [1] SEUK (2021) No going back- state of social enterprise survey 2021, https://www.socialenterprise.org.uk/seuk-report/no-going-back-state-of-social-enterprise-survey-2021/ [2] NHS Confederation (2021) Increase in demand for mental health support is being felt across the system, 25 October 2021, https://www.nhsconfed.org/articles/increase-demand-mental-health-support-being-felt-across-system [3] ADASS (2020) The voluntary and community sector in a world shaped by Covid https://www.adass.org.uk/next-steps-for-the-vcs-the-voluntary-and-community-sector-in-a-world-shaped-by-covid

The winners of the UK Social Enterprise Awards 2022 were announced last night at a gala reception at the iconic Roundhouse in Camden, London. The Awards were a celebration of the impact of the UK’s social enterprise community and brought together leading social enterprises with supporters of the sector – from corporates to social investors. It was a real showcase of why social enterprise represents business at its best and, across fifteen categories, highlighted the diversity and strength of the sector. The winner of the overall Social Enterprise of the Year Award was auticon, the pioneering international tech consultancy that exclusively employs professional consultants on the autism spectrum. View the full list of winners here Guests enjoyed entertainment from Alex Horne and his band The Horne Section as well as from award-winning comedian Shazia Mirza and performers from social enterprise, Black Sheep Collective. Commenting on the Awards, Peter Holbrook, Chief Executive of Social Enterprise UK said: “The last year has been a difficult one for businesses across the UK, and it has been no different for social enterprises. The Awards were a real evening of hope and inspiration and brought home the sheer ingenuity, adaptability and determination of the social enterprise community, which has continued to deliver for the people and communities they work with and support. “The winners include businesses which are breaking down barriers for groups marginalised in the workforce, organisations at the heart of local economies, and those finding innovative ways to tackle the climate crisis. The ever-growing movement of social enterprise truly represents business at its best.” As well as celebrating the successes of the social enterprise movement the Awards used a social enterprise supply chain. Trophies were made by Designs in Mind – a social enterprise working with adults living with mental health challenges and catering was provided by The Clink, a business working in prisons. Social enterprise also provided the photography, table gifts, awards brochure and water. SEUK worked with social enterprise event management company, Fuse Events, to run the event. The Awards were delivered in partnership with Cwmpas, Social Enterprise Northern Ireland and Social Enterprise Scotland.

29 November 2022 On the evening of 28 November the House of Lords voted on an amendment to the Procurement Bill to include social value within the legislation. This will help ensure social value is embedded in public procurement. Peter Holbrook CBE, Chief Executive, Social Enterprise UK said: Last night the House of Lords voted to put social value into the Procurement Bill, standing up for the public so that decisions about the money we spend have to consider how we build a better society and protect the planet. At a time when our country faces multiple crises, we need to focus on social value more than ever. True value for money means considering the wider social, economic and environmental value that social enterprise creates. The ball is now in the Government’s court, but I hope that they will listen to social enterprises, businesses, public sector leaders and the House of Lords who all want to see social value not just embedded into public sector procurement, but expanded.

29 November 2022 Social Enterprise UK has launched a new podcast exploring the ways in which social value can be used to help businesses, the public sector and Government to develop a fairer, greener society.   Social value is a way of maximising the positive social, economic and environmental impact of organisations. The Social Value Act, introduced in 2012, made it obligatory for public bodies to consider how the services they commission and procure might improve the economic, social and environmental well-being of the areas they operate in. The aim of the Social Value Podcast is to help leaders in the public and private sector, to understand how using a “social value” approach will enable better decisions. The podcast is a part of the Social Value 2032 programme, a partnership between Social Enterprise UK, Jacobs, PwC, Shaw Trust, Siemens and Suez Recycling and Recovery UK. The programme aims to extend the use of social value across the public and private sectors and highlight how procurement can drive improvement and greater sustainability in businesses and markets in the UK, transform public services and accelerate the drive to Net Zero. On the first episode of The Social Value Podcast, Michelle Levi, Social Impact Lead for Europe at Jacobs, discusses the importance of building an organisational culture that supports and champions social value. You can listen to The Social Value Podcast at https://www.socialenterprise.org.uk/socialvaluepodcast/ Episodes are also available on Spotify and Apple Podcasts. Find out more about Social Value 2032 here.

We are delighted to launch our 2022 Christmas Gift Guide, featuring products from Social Enterprise UK members! It’s got your Christmas shopping covered from chocolates to socks and babygrows to growing herbs. The guide is full of presents with purpose and across six categories you’ll find gifts for children, stocking fillers, food and drink, items for your home and garden, clothing and accessories. It includes gifts which empower workers and support communities, products handmade by people learning new skills to change their lives, and discarded items given new beautiful forms. When you buy from a social enterprise you are buying gifts that gift back from businesses that are built to make a difference. We hope you enjoy browsing through the guide and buying social this Christmas! Click here to check out our Christmas Gift Guide

17 November 2022 Responding to the Autumn Statement, Peter Holbrook, Chief Executive of Social Enterprise UK said: The Chancellor spoke of the resilience and inventiveness of the British people, these are qualities that the social enterprise community has in abundance, but these purpose-led businesses will need the support of Government to survive this recession and inflationary pressures. Social enterprises work in every sector of the economy including public services and so while the Chancellor was right to protect health and education budgets, SEUK is concerned by the absence of a clear plan to protect other vital services. It is vital that these purpose-led businesses, which create social and environmental value as well as jobs and GDP to the UK are able to keep the lights on and keep trading through this crisis. SEUK will continue to lobby the Government for more support for social enterprises on energy bills and to be a voice for social enterprise throughout this crisis.

Social Enterprise UK have launched a brand-new Social Enterprise Directory. Featuring our members, the Directory is a unique way for social enterprises to connect with potential customers. Organisations and consumers who want to purchase with purpose can use the Directory to find social enterprises they could work with or buy from. All members that are social enterprises can be listed on the Directory. Members can update their profile either through the Directory itself or by contacting our membership team on membership@socialenterprise.org.uk.   The Directory is the place to visit if you want to explore the social enterprise movement- you can search by product type, social/environmental mission or by location.  CLICK HERE TO VISIT THE DIRECTORY

Thousands of social enterprises may not survive the winter amid rising energy and operating costs and concerns over accessing contracts and funding, according to the findings of Social Enterprise UK’s latest Social Enterprise Barometer Report. Across the 222 respondents, the report highlighted signs of strain over the last quarter, with cashflow and reserves positions worsened, turnover and growth expectations down, and a decline in staff numbers. 3% of respondents said they expected to close in the next few months, which if applied to the 131,000 social enterprises the government estimates there to be in the UK, would mean around 4,000 social enterprises could be at risk of closure this winter[1] Many social enterprises are uncertain about their growth expectations, with nearly a third (30%) saying that growth is dependent on pending funding applications, income or contracts. In response to the cost-of-living crisis, nearly two-thirds of respondents (61%) said they are seeking new grant funding, half are reducing spend on non-essential inputs and services, more than a third (36%) said they have had to increase prices, and a third (30%) are reducing their profit margin. The main concerns identified by social enterprises within the next three-six months are accessing funding and finance (57%), costs related to staff (40%) and energy prices (35%). Over a third of respondents (35%) are concerned about reduced demand for their products/services and just over a quarter are concerned about capacity to meet increased demand (27%). Respondents were also asked what forms of support would help in the current economic climate. Among the top suggestions, a third of respondents said they would like support with cashflow and cuts to national insurance contributions, a quarter of respondents wanted better terms and conditions on public sector contracts, and around a fifth of respondents wanted support with energy bill payments and cuts in business rates. Peter Holbrook, Chief Executive of SEUK, said: “It’s clear from this report that the combined crises surrounding energy, inflation and recession have many social enterprises concerned for their future. “Our past research has shown that social enterprises prove more resilient to economic challenges than other businesses, so the degree of strain social enterprises are experiencing demonstrates the scale of the difficulties they are facing. “Most social enterprises work with people directly affected by the rising cost of living and they themselves need government support to brace the barrage of economic and financial instability. “Social Enterprise UK will closely monitor Government support announcements as it must enable social enterprises as they tackle the issues facing our communities and our planet. It is a matter of urgency.” The Social Enterprise Barometer report can be accessed through SEUK’s new Social Enterprise Knowledge Centre. Launched on 9th November, the Social Enterprise Knowledge Centre seeks to be the UK’s most comprehensive source of evidence on social enterprise. [1] Based on the new government estimate of 131,000 social enterprises in the UK: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1101560/Social_Enterprise_Market_Trends_2019_-_Middlesex_University.pdf