Here, CFG's Policy Officer, Isaac Bristol, looks at some policy wins, important conversations between the sector and Government, and further ahead to the potentially paradigmatic May elections.
Despite mounting economic pressures, global precariousness and the Government embroiled in yet another crisis, it has (perhaps surprisingly) been a notable month for policy changes that will have a positive impact on our sector: though you would be forgiven for missing them amid the wider malaise of domestic and international conflict!
Impact of the Middle East conflict
We start where the world’s attention is duly focused. CFG, as part of a group with senior charity sector representatives, met with Ministers and Government officials at Number 10 on 15 April to discuss the impact of the US–Iran war on charities and the communities they serve.
We were encouraged by the willingness to listen, and trust that these conversations between the sector and Government will remain open, reflecting the uncertain nature of the current conflict and its impacts on charities and the wider economy.
You can read more about the meeting here.
We will undoubtedly continue to engage on this issue and will keep you as up-to-date as possible on both the anticipated impacts and our work to mitigate them.
Digital Markets, Competition and Consumers Act 2024 (DMCCA)
As an example of successful mitigation, following concerns raised over several years by charities across the sector, the Government has confirmed it will exempt most charities from the DMCCA.
For some quick context, the DMCCA is designed to protect consumers; however, it also had concerning implications for certain charities.
Proposed changes to cooling-off periods could have left membership charities open to abuse, as well as affecting their ability to claim Gift Aid. These concerns can now be eased, as the Government has said it will exclude the majority of charities from these changes (you can read more on the GOV.UK website here).
Charity Compliance
We have continued to raise concerns with the Government about proposed changes to charity tax rules, particularly regarding the more restrictive “sole purpose” test for charitable investments, the shift from a motive- to an outcome-based test for tainted donations, and changes to legacy giving that could have placed a time limit on their use.
The Government has acknowledged our steer on all three, and in relation to legacy giving specifically has removed references to a timeframe within which legacies must be applied for charitable purposes.
You can read the Government's updated guidance in full here.
VAT Relief on Donated Goods
As we have shared previously, from 1 April 2026, the Government has introduced VAT relief for certain goods when donated from a business to a charity for “onward distribution or use in a charity or eligible organisation’s services.”
This change benefits all parties. Charities gain access to useful, and at times essential, goods at no cost. Businesses can incorporate donations into their stock flow to support important causes without incurring a tax penalty. Government and the wider economy benefit from reduced waste and better reuse of materials. You can read more about this change here.
It is also worth noting that 1 April brought with it another major change with the increase in NLW and NMW to £12.71 and £10.85 respectively.
What’s next
An especially busy period for government is just around the corner. The local elections on Thursday 7 May will see a significant proportion of local authorities, as well as the Senedd and Holyrood, being contested, the results of which could have a meaningful impact on the prevailing political winds.
At a time when the Prime Minister is again under intense pressure, a (expected) poor performance across local authorities would only add to this, potentially prompting notable shifts in policy, personnel, or both.
The local elections will be shortly followed by the King’s Speech on Wednesday 13 May. It is not yet clear whether the legislative programme will be as expansive as in 2024, which included the highest number of Bills since 2005.
Nonetheless, it is expected to focus on a broad range of issues, including reforms to the asylum and criminal justice systems, UK–EU relations, and the extension of the franchise.
As ever, we will continue to work towards policy changes that make a difference, especially in the face of macroeconomic forces beyond our control.
If you would like to share how rising fuel costs and the impact of conflict it impacting your organisation, you can do so anonymously via this form. The insights you provide support our work and inform our conversations with Government.
We are interested to hear your experiences any time. You can also reach out to us via email.