The 2025 Autumn Budget has landed with a mix of modest wins and ongoing challenges for VCSE organisations. To support members, our Policy and Data team has put together key takeaways for the VCSE sector, along with a curated guide of sector insights and analysis. These resources will help you understand what the Budget could mean for your organisation and the communities you serve.
The 2025 Autumn Budget has generated a cautious response from the voluntary, community, and social enterprise (VCSE) sector. The scrapping of the two-child benefit cap is a significant step forward for families experiencing poverty, a change VONNE supported by signing the North East Child Poverty Commission’s joint letter to the Chancellor alongside 110 other organisations. But beyond this, the budget offers modest gains for the sector.
Charity Finance Group called the Budget “a real mixed bag” and the National Council for Voluntary Organisations (NCVO) noted that it provides “limited overall support”. Rathbones also highlights that the Budget lands amidst a “triple squeeze” of rising costs, funding pressures and growing demand for services.
Key Autumn Budget 2025 Takeaways for the VCSE Sector
Positive measures
- Abolition of the two-child benefit cap, easing pressure on low-income families and reducing some immediate demand on frontline support services.
- New VAT relief on business donations of goods could strengthen business-charity partnerships.
- Minimum wage increase supports low-paid staff and retention
Continuing Pressures
- Higher wage and employment costs for organisations already facing tight budgets.
- Inflation and rising demand still outpacing available resources.
- Frozen income tax thresholds will reduce disposable income for many households, potentially weakening charitable giving and regular donations.
What’s missing
- The Budget does not relieve ongoing financial pressures facing local government, leaving VCSE organisations facing continued uncertainty around commissioning, funding levels, and financial stability.
- No significant long-term investment or structural support to strengthen VCSE sustainability.
This gap also highlights the importance of the Civil Society Covenant, which seeks to embed a more strategic, long-term partnership between government and civil society. Something that the Autumn 2025 budget has not moved forward.
For many VCSE organisations, what’s offered is not enough to offset the challenges they face. Rising wages and employment costs, static or uncertain funding, and rising demand for services mean that many charities and community providers remain deeply worried about sustainability.
In short, while the Budget offers some welcome measures, for many in the VCSE sector it may feel more like treading water than a sustained step forward.
To help members navigate this complex picture, our Policy and Data team has curated a guide to key resources and sector commentary, providing clear, practical insights for your organisation, your commissioning relationships, and the communities you support.
Autumn Budget VCSE Resource Guide
1. NCVO – What the Autumn Budget 2025 means for your charity
Read for: A clear overview of what the budget may mean in practice for charities including, welfare changes, funding uncertainty, and the operational pressures that many organisations are still facing.
2. Charity Finance Group – CFG reacts to Autumn Budget 2025
Read for: A sector-wide take highlighting why the budget is a “mixed bag”, noting welcome measures like VAT relief on business donations of goods but stressing that fall short of resolving longer-tern financial and cost pressures.
3. Rathbones – What the Budget means for charities
Read for: Practical financial insight focused on resilience and risk management, including how charities can prepare for ongoing economic uncertainty rather than relying on Budget measures alone.
4. NE Child Poverty Commission – Response to two-child limit abolition
Read for: A clear explanation of the positive impact the abolition could have for families experiencing poverty and why it may ease some immediate pressure on support services.
5. Third Sector – Key points for charities from the Autumn Budget*
Read for: A quick digest of the major announcements affecting charities. Useful for a fast, high-level understanding of where the Budget helps and where gaps remain.
6. Third Sector – Charities overlooked/under-recognised*
Read for: A critical view highlighting areas where the Budget underestimates the scale of demand and financial strain on the VCSE sector.
7. DSC – Autumn Budget 2025: Christmas cheer or bah humbug?
Read for: A balanced commentary setting out both positive measures and continued risks, especially around frozen thresholds, inflationary pressures, and VCSE sustainability.
8. King’s Fund – What does the Autumn Budget 2025 mean for health and care?
Read for: A health and care-focused analysis of the Budget. Helpful for VCSE organisations delivering, supporting, or partnering with health and care services.
9. NHS Confederation - Autumn Budget 2025: what you need to know
Read for: A headline points on the Budget from an NHS system perspective, useful context for VCSE organisations working alongside the NHS.
10. Civil Society – In-depth analysis
Read for: A detailed breakdown of sector-relevant fiscal and regulatory measures, highlighting cost pressures, compliance changes, and long-term sustainability challenges.
11. Joseph Rowntree Foundation – Scrapping two‑child limit eases burden on families, but living standards still bleak
Read for: Analysis of the impact of removing the two-child limit, showing how it eases pressures on low-income families whilst highlighting ongoing financial challenges.
* paid access.