NCVO Spring Statement 2025: What it means for charities
Key announcements for charities and communities
The 2025 Spring Statement sets out the government’s updated economic strategy in response to reduced fiscal headroom.
While not a full budget, the statement outlines how the government plans to meet its fiscal rules, alongside priorities for reforming public services and reducing the size of the state.
Although some changes are expected to come into effect gradually, others signal more immediate implications for people and the organisations that support them.
Several announcements will have a direct impact on charities and the communities they work with.
Impact on the voluntary sector
Welfare reform and increased need:
Cuts to disability-related benefits could hit communities hard. Scope warns that 700,000 disabled people risk falling into poverty without PIP. The government’s own analysis suggests 250,000 more people – including 50,000 children – could enter relative poverty.
Charities supporting disabled people, carers and those on low incomes are likely to see increased demand. This comes at a time when we know charities are making difficult decisions to manage the increase to employers National Insurance Contributions from April.
Pressures on partnerships:
Many charities work in close partnership with public bodies. Reduced departmental budgets and structural changes, like the abolition of NHS England, could affect grants, contracts and collaborative policy work.
We have seen before how churn can disrupt partnership working and relationships. In moments of significant change and pressure, open communication and collaboration is vital.
Regulation:
Voluntary organisations have interactions with various regulators such as Care Quality Commission and the Charity Commission. We support effective and proportionate regulation. It is important that regulators have the resource they need to perform this role effectively.