There is a tidal wave of redundancies happening across the charity sector, but the human impact is beginning to take its toll.
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“One evening I was physically sick from the stress. I had to reapply for a job I had been doing well for some time and felt torn.” These are the words of an anonymous former charity employee, reflecting the emotional weight that job cuts carry.

Once seen as champions of ethical employment and people-first values, charities are now becoming increasingly familiar with the painful process of restructuring, outsourcing, and streamlining. The consequences are deep and widespread, far beyond budget lines and payroll spreadsheets.

A crisis across the sector

Across the UK charity sector, organisations are confronting a convergence of financial pressures: rising inflation, increasing payroll costs, declining donations, and shifting grant priorities. The result is a redundancy reckoning, which is drastically impacting the way charities have been and are able to operate.

The National Trust, one of the UK’s largest charities, is undertaking one of the most high-profile restructuring efforts, announcing it will cut 6% of its workforce in a bid to save £26 million. Increases in National Insurance contributions and a hike in the National Living Wage alone have added an estimated £10 million to the charity’s annual wage bill. Prospect union’s deputy general secretary, Steve Thomas, explains the frustration of many: “There is shock and anger among staff. We understand the cost pressures, but management decisions and external factors have contributed to the financial situation — and now our members are paying the price.”

The Save the Children restructuring is no less dramatic. The charity placed nearly 200 roles at risk in 2025, aiming to cut its annual staffing bill by £6 million. CEO Moazzam Malik says the changes are designed to “lead to a sharper focus” on escalating crises such as poverty, conflict, and climate change. But internally, the move has prompted fears of mission drift and deep concern over the loss of longstanding talent and institutional knowledge. The charity noted that staffing costs had risen by £7 million over the last four years — a pattern reflective of wider inflationary pressures facing the third sector.

Meanwhile, The Scouts, a youth-focused charity with wide national reach, has also entered crisis mode. Last year it announced redundancies across departments, citing “significant pressures on our budget” and slow recovery in membership postpandemic. The charity was already implementing cost-saving measures such as cutting back capital spending and operational overheads, but with a financial gap still looming, it had little choice but to reduce headcount. In a statement, the Scouts said they were “deeply saddened to be in this position” and were focusing on “protecting frontline youth services as far as possible.”

Hospice care in peril

The crisis extends into one of the most sensitive and essential corners of the sector: end-of-life care. A report by Hospice UK found that more than one in five hospice charities had either already made cuts or were planning to do so imminently. This includes scaling back vital services like inpatient care, family counselling, and community outreach.

Hospices are uniquely vulnerable. Their funding models rely heavily on public donations and regional commissioning, both of which have become increasingly unstable. For example, Kirkwood Hospice in West Yorkshire had to reduce its inpatient capacity from 16 beds to just 12, laying off 19 staff members.

“We are heartbroken to be in this position. But without additional support, it simply isn’t possible to maintain the level of care we’ve provided in the past,” CEO Michael Crowther says. The hospice expects to see the number of patients it can support fall by nearly 40%, from 2,100 last year to just 1,300 this year.

Similarly, Rowans Hospice in Hampshire has already reduced service levels and made redundancies. CEO Ruth White describes the decision as “devastating,” acknowledging the “extraordinary dedication” of affected staff and expressing concern about the impact on patients and their families.

In some cases, services for children are being affected. Forget Me Not Children’s Hospice, serving some of the most vulnerable families, reported that it might have to reduce its respite care services. “If we’re forced to cut back these services, we’ll be failing the very people who rely on us most,” CEO Gareth Pierce explains.

A human issue

At the heart of every restructure lies a human story – sometimes many. Charity Times spoke to several affected staff members who describe not just professional disappointment, but deep personal distress.

“All staff were called into a meeting to find out we were all at risk of redundancy,” one former employee says. “A plan was shown and people’s roles suddenly no longer existed. I was petrified... I worried how this would impact my young family, and the whole process seemed confusing. One evening I was physically sick from the stress.”

Being forced to reapply for a job they were already performing, alongside colleagues now turned competitors, created a hostile atmosphere where empathy and support were hard to come by. “We were encouraged to act professionally — but we were hurting,” another employee adds. “It wasn’t just a job. It was part of my identity.”

A different charity worker — still employed but reeling from the impact of seeing friends lose their roles — said: “It’s been a really difficult time within our organisation. Multiple people have been made redundant and many of those are people I would consider friends. Those of us who remain are taking on extra work (for no extra pay) and feel blindsided by the whole process. It’s difficult to remain motivated.”

This emotional aftermath, which is often referred to as “survivor syndrome”, is common. It manifests as guilt, burnout, reduced trust in leadership, and an erosion of the values that once made charity work meaningful.

“How are we supposed to feel excited about working for an organisation that has treated our colleagues in this way? Meanwhile, most of those at senior leadership level are still being paid above the odds, it simply doesn’t feel fair,” another anonymous charity employee says.

Legal lines

Sonya O’Reilly, a partner at an employment law firm, says that many charities, especially those without in-house HR or legal teams, struggle to manage redundancy processes properly. “Key to avoiding the risk of unfair dismissal claims is following a full and fair procedure and keeping adequate records. In our experience, this is often where employers trip up,” she says.

Some organisations are failing to meet even basic requirements around consultation. If more than 20 staff are at risk of redundancy within a 90day period, collective consultation obligations kick in, with specific legal timeframes, documentation, and employee representative requirements. Non-compliance isn’t just risky; it can result in tribunal claims or even criminal penalties for senior managers.

But even where legal obligations are met, many charities fall short in tone and approach. “Redundancies must be handled with empathy,” O’Reilly says. “Transparency with staff, even when the news is bad, can help maintain morale. People are more likely to accept difficult decisions if they understand the rationale and feel treated with respect.”

Leadership dilemmas

Restructuring is a leadership test and one that many charity leaders are now facing under extraordinary circumstances. They are under pressure to make quick decisions that balance long-term financial health with immediate service needs, all while upholding their mission.

Leadership communication is often the first casualty. Staff report vague emails, delayed announcements, or sudden restructures with little warning. “We felt like numbers on a page,” one worker affected by a recent HQ restructure explains. “We got a Teams meeting invite and then found out our whole team was being reviewed. No advance notice. No room for discussion.”

In contrast, some organisations are attempting to handle these challenges with openness. A small hospice in the North West invited all staff to participate in a voluntary redundancy scheme before considering compulsory layoffs. “We wanted staff to have a say,” its CEO says. “We were transparent about our budget gap and asked for their ideas. That approach bought us time and trust.”

The road ahead

Will the wave of charity redundancies continue? All signs suggest it will – at least in the short to medium term. Although some charities are seeing a post-pandemic fundraising recovery, most are battling rising wage bills, donor fatigue, and tightening statutory grants. The cost-of-living crisis hasn’t just hit charities’ operating costs, it’s also made many donors more cautious.

Meanwhile, demand for charity services continues to grow. Poverty, homelessness, mental health, and global instability are all fuelling the need for support. This tension between rising need and shrinking resources is unlikely to be resolved easily.

Charities are being urged to look beyond short-term cost-cutting and consider the longer-term impact on organisational capacity. Are they losing core expertise? Alienating supporters? Undermining internal culture?

People before process

Redundancy is more than a line item. It’s a hugely human-centred issue and one that affects employees, their families, and the communities they serve.

One employee sums it up powerfully: “I have seen this happen time and time again to friends across the charity sector. I feel that recruiting trustees with financial experience and who are equipped to challenge leaders is vital in sustaining much-needed services.”

The message is clear: good governance really matters. So does empathy. In a sector built on human dignity, the way it treats its own people in times of crisis matters more than ever. It’s time to look beyond the numbers.

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