MCF Warns of Financial Strain on Charities Following Autumn Budget

As the government unveils its Autumn Budget, MCF expresses concern about the implications of several key measures for the charity sector.

While increases to the National Minimum Wage and National Living Wage are a welcome step toward fairer pay, these changes may place further strain on charities already struggling with rising operational costs. Many continue to face persistent challenges in accessing funding that covers essential administrative and staffing expenses.

These announcements add to existing pressures. Charities are already under significant financial strain following the rise in employers’ National Insurance Contributions (NICs) introduced in April 2025. Although NIC thresholds have been frozen, the increase has already had a marked impact on organisations, undermining the delivery of vital services.

We also welcome the decision to lift the two-child benefit limit, a long-overdue step that will help lift thousands of children out of poverty. This must be followed by further policy measures that address systemic inequalities.

Fadi Itani OBE, CEO of MCF, said:

“Charities are experiencing exceptional levels of financial pressure, driven by reduced income in real terms, and the rising cost of living. At the same time, demand on the Third Sector continues to grow, creating an urgent need to safeguard the future of our sector.”

Urgent action is needed to protect the sector. MCF urges the government to exempt charities from NICs, in line with long-standing calls across civil society.