October Policy Update

Welcome to the October Policy Update! Here you will find news and updates from around the charity sector. This month’s update includes some information on DSC’s recent charity campaigning event, the Civil Society Covenant and the Autumn Budget. 

Experts give advice on charity campaigning  

Every year DSC hosts the Engage conference, an event that helps charities reach politicians and policymakers with their important cause. With the first Labour government in 14 years now elected and governing the country, this year has brought many new opportunities for charities to make an impact. It was a jam-packed event, with lots of key messages from policy professionals on how to interact with the new government.  

Speakers including Vicki Butler, Chris Walker, Jay Kennedy, and Richard Sagar, discussed the first 100 days of the new government and parliament, the King’s Speech, Labour’s ‘mission-led government’ and plenty more.  

To help those who were unable to attend get the information they need to campaign with confidence, Jay Kennedy has provided a summary ofkey highlights from the event.  Click here to give it a read. 

Help shape the Civil Society Covenant  

NCVO (National Council for Voluntary Organisations) and Acevo (the Association of Chief Executives of Voluntary Organisations) are working with the government to develop a Civil Society Covenant that will guide and support more collaboration between government and civil society. The idea was officially launched at an event in Number 10 Downing Street with the Culture Secretary Lisa Nandy and the Prime Minister Sir Keir Starmer. 

So far, these two organisations have held initial discussions with over 50 infrastructure bodies, including DSC, and worked alongside the Department for Culture, Media and Sport (DCMS). There is now a consultation phase hosted by NCVO to get wider feedback from the sector. The draft covenant is based around four principles to define the relationship, which are: 

1. Recognition: To ensure a strong and independent civil society 
2. Partnership: To ensure effective service delivery and policy-making 
3. Participation: To ensure people and communities can be heard and make a difference 
4. Transparency: To ensure civil society and government have the information needed to best serve people and communities 

NCVO and Acevo are looking for the widest possible feedback and need to hear your thoughts on the Covenant and these four principles. You can read the full draft principles and tell them what you think here. The consultation closes on 12 December. 

Once finalised, these principles will form the Civil Society Covenant which will support collaboration between the government and civil society.  

The Autumn Budget’s impact on the charity sector 

On Wednesday 30 October, Britain’s first female Chancellor Rachel Reeves delivered the first Labour Budget in nearly 15 years under the theme: ‘Fixing the foundations to deliver change.’  

There are many positives to take away from the Budget. Importantly, the Charity Commission budget has remained intact, which is critical for the sector. Also, we saw a substantial increase in local government funding, which DSC and others in the Civil Society Group have consistently called for, as well as important investments in the NHS, education and care.  

According to Jay Kennedy, DSC’s Director of Policy and Research, overall the Budget comes across better than expected, but there is more work to do. He says “we haven’t won everything in the first round, but the game is far from over and there’s clear opportunity to make further progress in the years ahead.” Read our full Autumn Budget breakdown here. 

However, the changes to Employer National Insurance Contributions (NICs) are causing serious concern for many charities, particularly larger ones with more staff.A lowering of the threshold at which NICs start to be paid, as well as an increase in the rate – from 13.8% to 15% – will increase financial pressure on many charities that are already stretched, for example hospices and social careproviders. 

The impacts of these changes are still being analysed, but if this affects your charity there are some things you can do. First, NCVO has written an open letter to the Chancellor, which you can sign. Charity Finance Group has also launched a survey asking people to submit evidence about the impact of the NIC changes, which youcan complete here. 

DSC will keep you posted on the latest developments as the situation evolves.