How to access government funding

Every few years the government outlines its spending plans in its Comprehensive Spending Review. The most recent review was announced in June 2025 and gives charities a raft of clues as to where the government’s long-term priorities will lie in terms of the contracts and grants they may make available to the sector.

 

This review was the first made by the Labour administration led by Prime Minister Keir Starmer. It revealed that health, housing, and children’s social care sectors can expect an uplift in funding. But it also showed that a similar hike in adult social care has not been forthcoming.

 

Here we outline the government’s latest spending plans, especially in the context of a changing relationship between Whitehall funders and charities.

 

 

Changing financial relationships

 

In the same week the government announced its latest spending plans, research emerged to show that trusts and foundations had, for the first time, overtaken government bodies as the largest source of grant income to the voluntary and community sector.

 

This research was published by UKGrantmaking, a collaborative project involving 360Giving, Pears Foundation, The Association of Charitable Foundations (ACF), The Association of Charitable Organisations (ACO), UK Community Foundations (UKCF), and London Funders.

 

It revealed that grants handed out by trusts and foundations increased by 12% over 2023/24 to total £82bn. But government funders are still hugely important to the sector, with this research pointing out that government remains the main provider of contract income for charities.

 

The importance of government to charities’ coffers is highlighted in charity sector body the National Council of Voluntary Organisations (NCVO) research published in 2025. Its Road Ahead report found that government makes up 26% of the charity sector’s total income in 2021/22. While significant, the NCVO also warns that this proportion is falling, by four percentage points since 2022/21.

 

This presents charities with a dual challenge of accessing the sizable pot of government money but accepting that ministers are prioritising where they will spend it.

 

 

Government spending plans

 

The latest Comprehensive Spending Review was outlined in June 2025 by Chancellor of the Exchequer Rachel Reeves and outlined areas of government work where spending will be prioritised.

 

 

Housing

 

Tackling homelessness and boosting housebuilding are among key areas highlighted by Reeves. She announced that the government plans to spend £39bn over the next decade on a new Affordable Homes Programme. This will be spent on housing building “especially for social rent”.

 

This has been welcomed by homelessness charity leaders, including Fran Darlington-Pollock, Chief Executive of Greater Manchester Mayor’s Charity, which campaigns for more affordable housing. She says the funding “gives certainty for people at the sharp end of an entirely avoidable housing crisis and should be celebrated”.

 

Another to welcome the move is Rick Henderson, Chief Executive of Homeless Link, who says the extra money “brings much welcome financial clarity and investment to prevent and end homelessness”.

 

 

Health

 

Spending on the NHS will rise by 3% each year after inflation, presenting a potential boost for charities in the health sector, including mental health.

 

Jessica Gallier-Booth, Chief Executive and Founder of Northwest of England-based suicide prevention charity Martin Gallier Project, says the funding “signals a welcome commitment from the new Labour government to support recovery and reform in a sector”.

 

However, she added that “it will only be meaningful if it reaches the services that need it most – grassroots charities providing vital services at the heart of the community”.

 

 

Social care

 

The Comprehensive Spending Review announced £1bn for children’s social care.

 

The aim of this is to ensure “that children do not go needlessly into care when they could stay at home and, for children where state intervention is necessary, better care and better outcomes”, says Reeves. Those working the sector have welcomed the move, especially if it helps fund charities’ work to ensure help gets to families at an early stage.

 

Family Rights Group Chief Executive Cathy Ashley says swift support is needed to ensure families get access to “help early before problems escalate”.

 

She adds: “There are record numbers of children in the care system, many isolated, living far away from family and friends. One in three children are living in poverty and families are struggling to parent in conditions of adversity.”

 

But there are concerns that there wasn’t a similar hike announced for adult social care. This “gives little confidence that there will be the ambitious change people drawing on social care deserve”, warns Kate Terroni, Chief Executive of care charity United Response.

 

 

International aid

 

Another area where charities can expect dwindling government funding is international aid, with the Foreign and Commonwealth Office being among departments to miss out. Reeves has told the department it can expect real terms cut of almost 7% as the government diverts overseas aid to defence spending.

 

Charities in this sector have understandably raised concerns of how the funding cut will impact their work. NGO body Bond warns that “these cuts will be devastating for the poorest countries and the world’s most marginalised people”.