Compact relations – Charities and the New Deal

Charities are playing a significant role in the implementation of the government’s New Deal programme. From providing advice on local employment issues to administrative services to work placements, the voluntary sector has been working in public/private partnerships throughout England and Wales. However, despite the government’s commitments in the Compact between it and the voluntary sector to support the independence and creativity of the sector, the New Deal for 18–24 year olds reinforces many of the negative sides to the ‘contract culture’. This article will examine working relations between charities and the State post compact, using charities’ participation in New Deal as a case study. We will argue that participating charities face a series of potential legal pitfalls. They might also find that, instead of being fully funded through State funds, their participation in the delivery of New Deal is partially funded through their own charitable resources.