A HEALTH trust in Harrow has plunged volunteer groups into turmoil by cancelling hundreds of thousands of pounds worth of grants.

NHS Harrow dropped the bombshell at the end of May, sending round letters to organisations like Harrow Mencap, Mind in Harrow, and Age Concern giving three months notice that the current contracts would be axed and ordering an urgent review of spending on voluntary groups.

The move is part of a widescale spending review by the trust to plug a £32m blackhole in its finances. Some of the grants are likely to be reinstated following the review, but in the meantime, charities have been left in limbo and fearing for their futures.

Deven Pillay, chief executive of Harrow Mencap, said cuts of around £110,000 to his organisation would “potentially devastate us” and questioned the “underhand” way the health trust is carrying out the review.

He said: “We are asking whether they have done proper impact assessments - have they considered how this would affect the most vulnerable in our community?

“Everything is up in the air and we have to just wait to find out what the outcomes of the review are.

“We know they have to look at costs, we know it is a difficult time, but if they went through proper processes and consulted properly with us then maybe we could manage the difficult decisions together.”

Health trust board papers reveal an aim to cut £150,000 from the voluntary commissioning budget, and although the trust has refused to say how much money is likely to be cut, some have heard £600,000 may be slashed from voluntary groups.

Several of the affected organisations have contacted the Public Law Project, an independent legal charity, to look at challenging the fast-track process of reviewing the grants which is being used.

One health charity chief executive suggest nine months is normal for this type of consultation, but by terminating the grants now, NHS Harrow will be able to cut some grants immediately after that time.

It has also emerged the health trust did not consult with Harrow Council before sending out the letters, adding to fears the process is being rushed through.

Some organisations would be worse hit by the cuts than others – Harrow Mencap relies heavily on the money for day-to-day running – and innovative schemes to help vulnerable people may have to be concelled.

Mike Coker, chief executive of Harrow Carers, said it receives funding to train carers to spot the signs of mental health problems, a project which is now potentially under threat.

He said: “The way they are going about it, people are not happy with and don't think it is compliant with the way things should be done.”

James Walters, director of development and system management for NHS Harrow, said impact assessments have been completed in line with equalities legislation, and said the needs of patients is being put first in this process.

He said: “I appreciate that this is a difficult and worrying time for the voluntary groups.

“We have our best to consult the voluntary sector and advise them what we are doing in a fair, open, and transparent process.”

He added that decisions on the future funding of the voluntary sector are due to be made next week.