Charity closures soar due to donations stalling and costs

The number of UK charities that have been forced to shut their doors for good has jumped by 74 per cent this year, with the rising cost of living, stalling donations and the increase in employers' national insurance all blamed for the shocking rise.

- MILLIE COOKE POLITICAL CORRESPONDENT

The sector has raised fears that people in need will be left without vital support, with Oxfam warning that charities are being "asked to do more with less, at the very moment people need us most".

There are also concerns that the government's Employment Rights Bill, which would require charities to guarantee hours for zero-hours staff and pay compensation for cancelled shifts, could further strain charities' budgets, driving more insolvencies.

Oxfam, which in April said it took the “difficult decision” to put 265 of its 2,100 staff at risk of redundancy, has now warned that charities are being “asked to do more with less, at the very moment people need us most”.

The number of major UK charities, defined as those that recorded revenues of over £50k, shutting down jumped to 151 in 2024/25, up from 87 in 2023/24, according to charity commission data analysed by chartered accountants and business advisers Lubbock Fine.

The firm said the increase in insolvencies reflects a “triple hit” of rising employment costs, stalling donations and reduced government funding.