Spring Statement exacerbates London charity skills challenges

Written by: Sarah Walkley: Sustainability Adviser, Writer, Researcher, and Link UP London Skilled Volunteer

Apr 2025

Substantial cuts to welfare in the Spring Statement will pile the pressure on London’s already overstretched charitable organisations. Capacity-building support from Skilled Volunteers will become increasingly essential for organisations to cope with this growing demand for services. Link UP London is always on hand to help.

Welfare cuts

In March 2025, Chancellor Rachel Reeves announced a wide-ranging package of welfare reforms, including cuts to the health aspect of Universal Credit and stricter eligibility criteria on Personal Independence Payments (PIPs) for those with disabilities. Together, they are estimated to deliver £5 billion in savings to the welfare budget and help UK government spending remain within established fiscal rules. But the government’s own calculations estimate that the changes could push over 250,000 people into relative poverty — one in five of them children. Disability charity Scope suggests that as many as 700,000 people with disabilities risk poverty due to cuts in their PIPs. For these groups, the only option is to lean more heavily on local charities and community groups for support.

Skills investment under strain

Even before this latest announcement, small charities and community groups were facing immense financial pressures. Charitable donations have risen in recent years, but they are yet to return to pre-pandemic levels, according to financial advisors Rathbones and smaller organisations have experienced slower growth in donations than their larger counterparts.

At the same time, smaller charities and social causes have faced disproportionately higher increases in operating costs — a situation which is set to worsen with the hike in employers’ national insurance contributions on 6 April 2025. Savings have to come from somewhere. While one in five charities is expecting to cut back services despite rising demand, most are looking to reduce their operating costs. Organisation and staff development come high up the list of options for slashing outgoings.

Since 2011, charities have reduced their spending on training and development by 25%. They are also three times less likely than other types of organisation — commercial and non-profit — to invest in leadership development. Over half of UK charities are experiencing difficulties in attracting and retaining staff, with London and the South-East being the hardest hit, as salaries fail to keep pace with the rising cost of living. The remaining employees have seen their workload expand, while management teams have been pulled away from strategic decision-making and organisational capacity-building to focus on frontline service delivery.

Skilled volunteer support

At Link UP London, we understand the value that a Skilled Volunteer can bring to overstretched organisations. They can help charities take a step back and focus on their strategy. Alternatively, by sharing their skills, Skilled Volunteers can provide the high-quality, targeted training that charities and community groups need, but can’t afford — whether that is how to make the most of social media or how to diversify funding streams.

But for many small charities and community groups caught in the maelstrom of shrinking resources and rising demand, it’s tough to take the time to work out how and where best to use volunteer support. That’s where matchmakers like Link UP London come in.

We make it easy for volunteers and small charities and community groups to connect. We help bring structure to those matches, enabling hard-pressed organisations to determine what support they need and empowering Skilled Volunteers to have greater impact.

We’re always happy to chat with any charity, community group or social enterprise that is looking for greater support. If you are feeling under pressure and worried about how you’ll cope with increased demand for services as a result of the Spring Statement or simply want to discuss how to generate maximum impact from limited resources, please reach out.