The Bumper Budget — Boom or Bust for the charity sector?

The Bumper Budget — Boom or Bust for the charity sector?

In what was the biggest budget for a number of years, we saw announcements covering almost every area of society. All decisions made by the government can have far-reaching consequences, shaping the landscape for essential services, especially funding. In recent years, the helpline sector has taken on an increased burden, filling gaps left by reduced public funding in social services, health care, and education. However, with resources already stretched, the decisions in this budget are more critical than ever for the charities you support. Here’s a breakdown of how this budget may impact you.

We saw from the Chancellor a significant £100 billion investment in public services, (mainly health and social care). The government also set out that it will legislate to prevent charity tax abuse, aiming to ensure tax reliefs reach the right people. Additionally, a proposed social impact investment vehicle will unite investors, charities, and government resources to address pressing social issues through sector collaboration. This is one area we will be watching closely to ensure the experiences of helplines and the people you support are central.

Other announcements included a boost of £1.5 million to the Charity Commission’s budget which reflects the government’s commitment to ensuring effective charity regulation. Our hope is that these funds will help the regulator be more of a support to smaller charities and increase public confidence in charitable giving.

Despite these investments, financial challenges remain for the voluntary sector. Increased National Insurance payments for employers may cost the helpline sector around £800 million annually. This change, combined with the rise in the National Living Wage, from £11.44 to £12.21 starting in April, will affect operating costs for charities and could impact their capacity to support vulnerable communities. We know that every pound charities have to spend on tax is money away from frontline services so we will be writing to the Chancellor calling for an exemption.

With further detail following over the next few days, this is a budget which will have a considerable impact on you and the people you support. We know that many of you already have to make difficult choices in the way you operate, and the prospect of additional National Insurance burdens will have a significant impact. We want to hear from you and take your experiences to Government when we raise our concerns. You can send us your views at policy@helplines.org.