Overall financial pressure remains significant
Sector bodies have described the Budget as “offering little to celebrate” for charities. While a few isolated measures support the sector, there is no sweeping relief or funding injection to counter financial pressures. Civil Society+2NCVO+2

Rising costs of staffing and operations
Many charities face increased wage bills (due to rising minimum wage), higher employer costs (from National Insurance and frozen thresholds), and growing demand at a time of static or squeezed funding. Rathbones+2Directory of Social Change+2

Donor behaviour may change — less disposable income, fewer/lower donations
With tax thresholds frozen, many individuals may find themselves in higher tax bands via “fiscal drag,” reducing disposable income. This could lead to fewer or smaller charitable donations, threatening income streams. Rathbones+2Saffery+2

Lack of support on energy costs, a big worry for some charities
Energy costs remain a pain point — and this Budget missed an opportunity to ease the burden (e.g., no specific relief on energy bills for charities). This is especially concerning for smaller and more resource-constrained charities. Charity Times+1

Many charities still face uncertainty over grants and public-sector contracts
Local authority budgets remain under pressure — and many charities rely on local grants or public-sector contracts. Without increased public-sector funding, charities may need to tighten services, reduce staff, or even close some programs. Rathbones+2NCVO+2