Charity Policy Round-Up – August 2026

This month’s news and policy update looks at some important developments for charities, from questions over the future of National Lottery funding to emerging risks identified by the Charity Commission. With the new government beginning to set out its priorities, there are also signs of potential opportunities for charities working in areas such as homelessness, alongside concerns about proposals that could affect volunteering. 

Read on for the latest news and policy developments affecting the charity sector and what they could mean for your organisation. 

Will charities ever get a Big Lottery refund? 

The National Lottery Community Fund’s latest accounts have raised fresh concerns about whether charities and community groups will ever receive the £675 million taken from Lottery good causes to help fund infrastructure for the 2012 London Olympics.  

Although successive governments have committed to repaying the money, the latest accounts suggest repayments are likely to begin from 2030 and could be “substantially lower” than the original amount. Recent reporting has also highlighted the uncertainty, with Civil Society reporting that the government is expected to return substantially less than £675 million. 

Of the £675 million diverted, £425 million should have been available for grants to charities and community groups. Jay Kennedy argues that, after 14 years of waiting, the government should honour its commitment and ensure the Lottery distributors are repaid in full. 

There is currently an opportunity for charities to make their views heard through the government’s consultation on the future of National Lottery good causes funding, which closes on 23 September. Read Jay Kennedy’s full article and find out how you can respond to the consultation here. 

Charity Commission highlights key risks facing charities 

The Charity Commission has published its latest analysis of risks facing charities, drawing on data from Annual Returns and accounts, compliance investigations, serious incident reports and concerns reported by charities. While the data covers 2024 and 2025, the report provides a useful snapshot of the risks trustees should consider as part of their governance and risk assessment processes. 

The Commission identifies seven areas of risk, with financial resilience, public benefit and individuals, and public benefit and structural vulnerabilities highlighted as the three key risks. Other areas include governance and trustee disputes, safeguarding, social tensions and security threats, overseas operations, and emerging technology and cyber security. Smaller charities remain particularly exposed to financial pressures, while the Commission also highlights growing risks linked to AI, fraud and cyber attacks. 

The analysis provides a useful starting point for boards reviewing their organisation’s risks and preparing annual governance paperwork. Read Jay Kennedy’s full analysis here.  

Andy Burnham pledges part of salary to homelessness causes 

Prime Minister Andy Burnham has pledged to donate 15% of his additional Prime Ministerial salary to homelessness charities and causes. The announcement comes alongside a national drive to ensure everyone sleeping rough in England is offered a route off the streets by Christmas, backed by £442 million in government funding. 

The funding includes £8.4 million for charities, faith groups and community organisations, with a national summit involving sector leaders also planned for the Autumn. The measures signal a renewed focus on tackling rough sleeping and could create opportunities for charities working with people experiencing homelessness to engage with the government’s plans. 

Burnham has previously donated 15% of his earnings as Mayor of Greater Manchester to a charity focused on tackling homelessness. Read the full report from Civil Societyhere. 

NCVO raises concerns over Reform’s proposals for charity placements 

NCVO has raised concerns about Reform UK proposals that would require people who have claimed benefits for more than a year to undertake 20 hours of work each week in placements arranged by local authorities, including with approved charities. The party says the scheme would provide work experience and allow charities to benefit from additional support. 

However, NCVO has warned that making people work for charities under threat of losing their benefits could undermine the voluntary nature of volunteering and create a “two-tier volunteering system”. It also cautions that charities could face significant additional administrative and safeguarding responsibilities at a time when many organisations are already under pressure. 

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