Des Loughney, Edinburgh secretary for the T&G, said charities were not receiving full cost recovery. "The funding regime is driven by cost, not quality," he said. "There are double standards about what counts as best value in-house, compared with when contracts are put out to tender."
Last month the Scottish Executive produced a report estimating the cost of implementing full cost recovery in Scotland at £130m. Gavin Yates, communications manager at the Scottish Council for Voluntary Organisations, put the figure at £180m.