Our round-up of the government’s Spring Statement and what it means for charities and communities they support.
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.
The Chancellor confirmed a wide-ranging package of welfare reforms, with cuts totalling nearly £5 billion to disability-related benefits by 2030. These include:
While framed as part of a long-term reform plan, these announcements represent the largest package of welfare cuts since 2019, with a strong focus on reducing the welfare bill and tackling fraud.
The Chancellor confirmed that NHS England will be abolished within two years. Its core delivery and commissioning functions will be absorbed into the Department of Health and Social Care (DHSC).
The government claims this will reduce bureaucracy, enable cost savings, and allow for greater ministerial control.
A new approach to regulation was confirmed, with the aim of simplifying the regulatory environment across sectors, including health, care and civil society. Key points include:
While the plan has largely been framed around business growth, the government has indicated that all regulators, including the Charity Commission and CQC, could be in scope.
The government confirmed that departmental spending will remain tight for the foreseeable future. Key announcements include:
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.
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.
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.
The Spring Statement lays the groundwork for the Spending Review, now expected in June, which will set departmental budgets for the next three years.
A more detailed fiscal and policy package may be announced in the autumn, and some are predicting tax changes and more radical proposals will follow.
We continue to work constructively with government to shape a Civil Society Covenant, alongside ACEVO and other partners.
This aims to improve collaboration between government and charities – ensuring voluntary organisations are recognised as essential partners in delivering services and shaping policy.