What's in the Budget for my charity?
The 2026 Budget will change what charities pay their staff, and it reaches the services they run and the people they support. Here are the headline measures for the sector. For the ones that bear on your own cause, ask Frontbench for a free briefing.
The headlines
Staff costs go up
The National Living Wage rises 3.9% to £13.21 an hour on 1 April 2027, so charities with frontline and support staff on the lowest rates should budget for it now.
Rough sleeping and homelessness
An additional £432 million over the two financial years from April 2027 extends the offer of a route off the streets. A Value for Money Review of homelessness funding, including temporary accommodation and supported housing, concludes in 2027.
Social housing
An extra £1.5 billion will deliver around 10,000 homes in England, prioritised for Social Rent and especially council homes. A new VAT relief applies to land sold to registered social housing providers.
Help with energy bills
Households in council tax bands A to D in England get a £100 Household Energy Payment from January 2027. Local authorities in England get £100 million more to help households hit hardest, including some in higher bands.
Welfare reform ahead
The government will respond to the Milburn and Timms reviews before the end of this year, with a White Paper early in 2027 ahead of legislation later that year. Carer's Allowance moves to an earnings taper, expected to help around 48,000 carers.
Women and girls
£55 million over two years accelerates the Violence Against Women and Girls strategy, and £15 million goes to the Office for the Impact Economy to mobilise funding from businesses, investors and philanthropists.
VAT and tax reliefs for charities
Heat batteries installed in charitable buildings qualify for the 5% VAT rate from 1 April 2027. VAT is removed on medicines donated free of charge, and search and rescue charities get a Vehicle Excise Duty exemption from 1 April 2027.
Early years and later life
Up to £5 million a year for three years from 2027 to 2028 will fund organisations such as BookTrust to get books to young children. Baroness Casey's Independent Commission on Adult Social Care will report in 2027.
Figures from HM Treasury, Budget 2026, published 28 October 2026.
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