Charity sector bodies have responded to chancellor Rachel Reeves’ first spring statement, with some expressing disappointment at its lack of new support for charities.
Reeves’ statement, delivered yesterday afternoon, was shorter than her autumn budget and did not mention charities but confirmed previously announced cuts to aid and welfare spending.
Some sector bodies criticised the lack of additional support for the sector in the face of rising national insurance contributions.
Others also noted that the proposed welfare cuts will place an increased demand on charities which they may be unable to meet at a time when many organisations remain overstretched and underfunded.
‘Many across the sector are already facing difficult decisions’
Richard Sagar, head of policy at the Charity Finance Group, highlighted the fact that Reeves did not mention charities in her speech.
He said: “There will be concerns for some though, as the cuts to welfare announced prior to today’s statement were confirmed by the chancellor today, with the Universal Credit health element also due to be cut by 50% for new claimants.
“These cuts have the potential to increase the need for charities to provide support for the most vulnerable in our society.
“Many charities from across the sector are already facing difficult decisions with an increase in NI contributions about to come into effect. The chancellor’s statement today has done nothing to ease charities’ concerns which were noted by the shadow chancellor.
“The chancellor also announced a 15% reduction in administrative budgets, and we hope there are no unintended consequences for the ability of charities to engage with government.
“We look forward to the upcoming spending review, which will hopefully provide more clarity and we will continue to advocate, on behalf of the sector, for more support for charities and the people who rely on them.”
Richard Bray, chair of the Charity Tax Group, said his organisation was “relieved to see that the spring statement does not bring any additional tax burden to charities”.
However, he said: “We are disappointed to see that there is still no amelioration of the NI increase for charities who have very limited opportunities to pass on these additional costs like their commercial counterparts.
“We also feel that the budget has missed the opportunity to make a number of other low-cost changes to the tax landscape for charities which would make a significant difference to the charity sector.”
Concerns at growing demand for ‘overstretched’ sector
Jane Ide, chief executive at ACEVO, said: “The latest measures announced today in the spring statement, which include deep cuts to welfare spending, will have a profound effect on the daily lives of millions of the poorest and already marginalized individuals in our society.
“Coupled with the forthcoming increases in National Insurance contributions, these policies will both heighten demand for services and reduce the capacity of civil society organizations to meet that demand both in the short and long term.
Meanwhile, Sarah Elliott, CEO of NCVO, said: “Many charities have expressed concerns about the impact changes to the benefits system could have on communities, which will lead to increased demand on an already overstretched sector.
“Charities bring on the ground understanding and connection to people with lived experience. We also deliver services to those most in need.
“We urge government to work closely with the voluntary sector to ensure reforms result in better outcomes long term, and not the exacerbation of current challenges.”
NAVCA, the membership body for local infrastructure organisations, was similarly critical of the potential strain that welfare cuts may bring on a sector already under pressure.
Maddy Desforges, CEO of NAVCA, said: “We are deeply concerned about the impact of changes to Universal Credit, which will push more people into poverty and increase reliance on food banks, debt advice, and crisis services.
“This will put even greater pressure on the voluntary sector at a time when demand is already rising. Local infrastructure organisations will be essential in coordinating resources effectively to support those in need.”
‘A mixed picture’
James Somerville, policy manager at think tank NPC, said the statement “paints a mixed picture for the people that charities support”.
“Positive forecasts for economic growth and real household disposable income, and falling inflation, are coupled with sluggish short-term growth and freezes to Universal Credit.
“Promising predictions will not ease the pressures on people who are struggling today, and government should leverage the expertise and capital of the impact sector to help the people and communities that need support.”
He said the statement underlined an “increasingly urgent need for a joint plan between government, civil society, and funders”.
Matt Whittaker, CEO and economist at Pro Bono Economics, expressed concerns about the disability benefit reforms.
He said: “The government's commitment to balancing the budget is understandable, but this approach risks devastating consequences for thousands of disabled people.
“Disability benefits aren’t just numbers on a spreadsheet — they are a lifeline, helping people manage the extra costs of daily life and maintain dignity, independence, and wellbeing.”
