The Scottish Council for Voluntary Organisations is the membership organisation for Scotland's charities, voluntary organisations and social enterprises. Charity registered in Scotland SC003558. Registered office Caledonian Exchange, 19A Canning Street, Edinburgh EH3 8EG.
SCVO responds to UK Government Spring Statement 2025
Responding to the Spring Statement 2025, SCVO Chief Executive Anna Fowlie, said:
“At a time when many voluntary organisations are facing severe financial difficulties, announcements in the Spring Statement will increase pressure on the sector.
“Across society, people on the lowest incomes rely the most on public services, including the essential services delivered by charities and community groups. Reducing social security entitlements will increase demand on already stretched services.
“Scotland’s voluntary sector is facing unprecedented challenges. Years of underfunding and poor funding practices, and shocks such as the pandemic, and the cost-of-living crisis, have taken their toll, increasing demand while exacerbating financial and operational challenges.
“The Chancellor added to those pressures in the Autumn Budget with increases to employer National Insurance Contributions which will cost medium and large voluntary sector employers in Scotland more than £75million per year. Some organisations face additional costs of hundreds of thousands of pounds. It is disappointing that the Chancellor has not acted on the growing evidence of the impact of these additional costs.
“Our sector can’t afford this. Charities already subsidise public services with their own funds - almost one in ten voluntary organisations in Scotland fear they won’t be operating in 12 months’ time, and some are already closing their doors.
“Despite this, the Chancellor has done nothing except make the situation worse. If the UK Government is serious about its intention to work in partnership with the voluntary sector, it must do more. It must ensure grants and contracts cover the full costs of employing staff, including off-setting the changes to employer National Insurance Contributions, and recognise changes to social security entitlements will further increase pressure on the voluntary sector. Far from saving money, these measures simply add to the public services bill across the piece.
“It’s essential that the government actively engages with voluntary organisations that have extensive experience of supporting the people and communities who will be affected by social security changes. Experts in sector must also be fully engaged in plans to encourage participation in volunteering and adequately resourced to support those choosing to participate in their ‘right to try’.”
