The Budget affects us all, but it may hit charities hardest

The Budget arrived in late November with a mix of expected announcements and subtle tax changes. 

For most individuals, the immediate impact might feel fairly minimal. But for the Christian ministries you support, the ripple effects could be much more noticeable.

Six ways the budget will affect charities

Here are the key areas that are likely to impact the most:

• Rising wage costs
  From April 2026, the National Living Wage and Minimum Wage rise again. For charities running on tight budgets, this will increase salary costs and put pressure on already-stretched services.
• More staff drifting into higher-rate tax
  The freeze on Income Tax bands continues to 2031. As wages rise but tax thresholds stay still, more people, charity staff included, will slip into higher-rate tax, reducing their take-home pay.
• Pension changes ahead
  Salary sacrifice pension schemes remain attractive, but from 2029 National Insurance relief will be capped. Some staff may adjust their contributions in the short term, which charities will need to plan for.
• Higher-rate donors may release more generosity
  With more people becoming higher-rate taxpayers, there is a growing opportunity to encourage them to claim their personal Gift Aid tax relief, freeing up more resource to give generously.
• Non-cash gifts may become more appealing
  With higher tax rates coming on dividend and property income, some donors may explore giving property or shares. These gifts can offer significant tax advantages and meaningful support to charities.
• Businesses incentivised to donate goods
  From April 2026, businesses donating goods to charities won’t need to account for VAT on them. This could lead to more donations of useful items like tech, food, furniture or equipment.

What does this mean for us?

The Budget may not alter your own situation dramatically right now, but it will shape the financial reality for the ministries and organisations doing vital frontline gospel work up and down the country.

As Christians, our response can be simple and faithful:

1. Pray

Pray for the churches and charities you support as they navigate rising costs and changing rules. Pray for wisdom, provision and resilience. Pray for even greater impact through their work.

2. Consider your giving

If you already give through a Stewardship Giving Account, this may be a good moment to review your giving or plan ahead for next year. 

If you are exploring new ways to be generous, regular giving, higher-rate relief or even non-cash gifts, this is a chance to reflect prayerfully on how you might respond.

Budgets come and go. But the work of the Kingdom continues.

Putting generosity into action

Your Stewardship Giving Account gives you a simple and effective way to respond, standing with the churches and charities most affected by this year’s Budget.

Explore the Giving Account