New research underlines pressures on third sector workforce and services

Lack of Fair Funding for Scotland’s voluntary sector is having a significant impact on staff, 2025’s Workforce Survey found.

Only a sustainable, multi-year funding model for Scotland's third sector can address growing pressures on workers across the charity sector, new research has found. 

The 2025 Voluntary Workforce Survey, carried out by the Scottish Council for Voluntary Organisations (SCVO)  - Scotland’s national membership organisation for the voluntary sector - spoke to more than 1,300 people working for charities and voluntary organisations.  

Funding insecurity and uncertainty, and general funding shortages impacting on pay and resources, are all having a negative impact on staff, with representatives from across the sector warning that unless action is taken, the situation will not improve.  

1 in 4 survey respondents reported being on fixed-term or temporary contracts, rising to 1 in 3 for front-line workers. This is far higher than the wider workforce where only 1 in 10 workers is on a non-permanent contract. 

More than a quarter of voluntary sector workers (27%) felt it was quite or highly likely they would lose their job in the next 12 months, twice the rate reported in the wider workforce (13%). 

Alongside this stress about their future, the number of staff who felt they had a good work-life balance has also dropped from 60% to 50% between 2015 and 2025. Many respondents spoke of workloads increasing due to problems recruiting and retaining staff, often a knock-on effect of funding cuts and funding insecurity. 

SCVO are calling for the Scottish Government’s own funding principles to align with SCVO’s definition of Fair Funding – developed through significant research and engagement with the voluntary sector. This includes longer-term funding of three years or more; flexible, unrestricted core funding, which enables organisations to provide security; timely decision-making and the inclusion of inflation-based uplifts and full costs, including core operating costs in grants.  

Despite the pressures facing them, workers also underlined their belief in their work, and the meaningful services they provide. 84% of respondents said that making a real difference to people and communities is one of best aspects of their work, while 87% saw their work as useful - far higher than the wider Scottish workforce.  

While still generally positive, job satisfaction is down 15 percentage points from 79% in 2015 to 64% in 2025. The main factors driving this downturn in satisfaction appear to be higher workloads and stress, and most importantly funding.  

Commenting, SCVO Chief Executive, Anna Fowlie said:   

“Scotland’s voluntary sector is powered by people who care deeply about making a difference. Our workforce survey shows a strong sense of purpose among voluntary sector workers, and commitment to the work they do day in, day out.  

“But it also highlights the significant strain being put on voluntary sector workers as a result of the financial pressures that have become all too familiar to the voluntary sector.   

“Voluntary sector leaders will, of course, be up for the challenge of delivering rewarding, fair work. Too often this is being undermined by public sector funders. Budget cuts, short-term funding cycles, late payments, incoherent decision-making and poor communication have become all-too familiar.   

“This needs to change – and our politicians know it. Ahead of the Scottish Budget and Spending Review, the Scottish Government has a real chance to create a funding landscape that is multi-year, sustainable, flexible and accessible. The people and communities served by Scotland’s dedicated voluntary sector workers deserve nothing less.” 

Lucinda Godfrey, CEO of Charity Leadership Scotland, commented: “These numbers confirm what many leaders already feel: the work is vital, but the weight of it is heavy.  

“At Charity Leadership Scotland, we are committed to collaborating on powerful research that assesses the wellness of Scotland’s voluntary sector and ideally leads to meaningful action to protect and support the individuals and organisations underpinning it.” 

The voluntary sector in Scotland employs just over 136,000 people, meaning that 5% of Scotland's 2.66million workers are employed in the voluntary sector.  

Shauna Wright, lead officer for fair work in Unite the Union, commented:  

“Unite the Union stands with care and not‑for‑profit workers who have faced underfunding in their sector, resulting in higher stress levels and concerns about their future employment opportunities in an industry where they have not felt valued for the work they provide.  

“Urgent action is needed to secure fair pay terms and conditions.” 

ENDS

Editor’s notes: 

Full details of SCVO’s Fair Funding principles can be found here: https://scvo.scot/policy/fair-funding-procurement/fair-funding/what-is-fair-funding

A short briefing and breakdown of SCVO’s 2025 Workforce Survey can be found here: https://scvo.scot/research/reports/evidence-library/2025-voluntary-sector-workforce-survey-headline-findings-dec-2025

More details about Scotland’s third sector workforce can be found here: https://scvo.scot/the-size-and-shape-of-the-voluntary-sector-workforce

The Scottish Council for Voluntary Organisations (SCVO) is the national membership organisation for the voluntary sector. Our mission is to champion the role of voluntary organisations in building a flourishing society and support them to do work that has a positive impact. Along with our community of 3,724 members and supporters, we believe that a thriving voluntary sector should be at the heart of a successful, fair and inclusive Scotland.