In October 2024, UK Culture Secretary Lisa Nandy announced plans to restore charities to a central role in national life. This initiative emphasises a new partnership between the government and civil society, encouraging charities freely to critique government policies and actively participate in delivering core governmental missions. This policy shift underscores the government’s recognition of charities’ vital contributions to societal and economic development.
So, the UK government wants charities at the heart of national policy – bold rhetoric, but what does it mean in reality?
With new funding streams and policy influence on the table, charities have a golden opportunity to step up. Yet, there’s a catch: charities are prohibited from having political purposes. Can they therefore balance government collaboration with their duty to remain neutral? Welcome to the tightrope walk of 2025!
The new reality – a government that wants charities in the room
In October 2024, the UK government announced its vision for a more integrated relationship with charities. The key goals?
- Get charities more involved in public service delivery.
- Make funding more accessible.
- Give charities a bigger say in shaping policy.
- Build stronger links between the government, private sector, and charities.
It all sounds promising – but charities will need to tread carefully.
The political pitfalls: where’s the line?
English charity law draws a clear boundary: charities can engage in political activity only if it directly supports their charitable objectives, and they must remain strictly non-partisan. But with the government offering closer ties, charities face a difficult question – how far can they go before overstepping into politics?
- Risk of perceived bias – if charities align too closely with government policies, they may be seen as political players rather than independent organisations.
- Threat to independence – increased government funding is great, but does it come with strings attached?
- Regulatory scrutiny – the Charity Commission has always been firm on political neutrality. With charities now more involved in policy discussions, will we see tighter oversight?
What’s happening in 2025?
A few emerging trends seem to be shaping how this is playing out:
- More charities in policy discussions – organisations with specialist knowledge (think homelessness, mental health, or climate change) are being brought into policy conversations more than ever before.
- Funding models are changing – to avoid accusations of government overreach, some new funding structures separate state support from direct influence.
- Regulatory updates expected – as the lines blur between engagement and partisanship, the Charity Commission is expected to issue clearer rules on how charities can participate in public discourse.
Case studies: Who’s getting it right (or wrong)?
- Environmental charities – as climate policy heats up, green charities are at the heart of discussions. But some have been accused of lobbying too aggressively, raising legal concerns. Others have faced backlash for perceived greenwashing, i.e. supporting government policies that appear environmentally friendly but lack real impact.
- Poverty and social care groups – these charities are enjoying a boom in government support, but some critics argue that state funding risks diluting their advocacy power.
How charities can stay ahead
To navigate this evolving landscape, charities need a strategy:
- Transparency is key – make it clear how funding is used and keep decision-making independent.
- Stay within the rules – regularly review legal guidance to ensure compliance.
- Engage, but don’t overreach – be part of the conversation, but without becoming the mouthpiece for any political agenda.
Conclusion
2025 is shaping up to be a defining year for UK charities. The government’s new stance offers charity trustees opportunities to influence policy, access funding, and expand your reach. But with this comes the challenge of maintaining independence and steering clear of political controversy. For charities, the message is clear: step forward, but watch your step.
If you would like further guidance on how these changes impact your charity, or need advice on maintaining compliance while engaging with policymakers, please get in touch today by calling 0800 086 2929, emailing info@elitelawsolicitors.co.uk or by completing our Free Online Enquiry Form.
