Charity leaders are concerned that Chancellor of the Exchequer John Healey’s first budget failed to outline specific support for the charity sector.

In his Autumn Budget he outlined plans to cut household energy bills and business rates, as well as bring in extra investment to tackle rough sleeping and increase the National Living Wage.

Chartered Institute of Fundraising director of policy and communications Claire Stanley acknowledges that such measures will offer “struggling people and businesses breathing space”.

But she is concerned that “there was no support extended to charities, many of whom have been a lifeline to those in need since the cost-of-living crisis took hold”.

She added: “At a time when charitable income is under unprecedented pressure, it is time for a step-change in how government works with the sector.”

She calls on ministers to put in place its recommendations to help increase legacy giving, encourage wealthy individuals to give to good causes and ensure “charities have the skills and tools available to make the most of emerging technologies including AI”.

“We will continue to work with relevant departments and regulators to ensure our members’ views are heard and to foster a resilient giving landscape in which charities and the communities they serve can thrive,” said Stanley.

Charities’ spending power eroded

Autumn Budget analysis published by think tank PBE and CAF Bank raises concerns that charities will continue to "pick up the tab", as their fixed contract and grant funding loses its value amid rising energy costs and inflation.

“This will erode charities’ spending power as they pay more to deliver services, at a time when stagnant real household incomes will put pressure on demand for charity services,” they warn.

PBE interim co-chief executive Jon Franklin said: “Charities are being dragged under by the weight of costs they can’t pass on. All at a time when many are struggling to plug the gaps left by strained public services.

“If the government and funders don’t step-up to support them then it’s the people who need help most that will ultimately pay the price.”

CAF Bank chief executive Alison Taylor added: “It’s critical time for charities heading into the winter as they face challenges from rising demand, increased costs, and falling incomes.

“Cost-of-living measures announced in the Budget may help alleviate some pressure on their services from squeezed households, with additional funding potentially available for some causes, such as rough sleeping.

“However, charities are also experiencing rising energy costs and organisations will need to consider whether minimum wage rises will affect their staff costs.”

‘No real room to breathe’

Charities are also concerned measures outlined by Healey to help struggling households they support do not go far enough.

Amnesty International UK’s economic, social and cultural rights lead Jen Clark said that while Healey has labelled the budget giving families “breathing space”, it “offers no real room to breathe”.

“Everyone has the right to enough food and a secure home. Yet one in five people say their household ran out of food in the past year and couldn’t afford more,” said Clark.

“A few pounds a week will not lift people out of poverty. The government must put the right to food into law, and raise Local Housing Allowance so people can afford the rent on their homes.”

Royal National Institute of Blind People (RNIB) campaigns and social action director Eleanor Thompson also welcomed energy relief for households, but she wanted to see more detail about how disability benefits are being overhauled to ensure this forthcoming reform does not “wipe out the positive benefit of today’s measures.

“Only 13 per cent of blind and partially sighted people say their disability benefits fully cover the extra costs of sight loss,” she said.

“People with sight loss face higher day-to-day costs for a wide range of things, from travel to food to specialist equipment.”

In his budget speech Healey said that the Timms Review, into the Personal Independence Payment system, is expected to be published next month.

He also announced £15m for charities and other organisations involved in boosting children's literacy. This has been welcomed by the Book Trust, one of two charities, including Dolly Parton's Imagination Library, mentioned specifically by Healey.

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