Monthly charity news and policy update – January 2026
Here's some news from around the charity sector.
This month’s news and policy update reflects a busy start to the year for charities, with new funding announcements, major developments in the government’s relationship with civil society, and growing concerns about the safety of charity staff, volunteers and beneficiaries.
Alongside the launch of a new £11.5 million fund to support closer working between councils and charities, the government has moved forward with plans to embed civil society more firmly at the heart of decision-making through the creation of a new Civil Society Council coordinated by in No.10. These developments point to a renewed emphasis on partnership and preventative, place-based approaches, though questions remain about how this will translate into practical support on the ground.
At the same time, the Charity Commission has issued new guidance in response to rising threats and hate-related incidents affecting charities, underlining the increasingly challenging environment many organisations are operating in.
Read on for what these developments mean for your organisation and how DSC can help you navigate the changes.
New £11.5 million fund to support local charity-council partnerships
The government has launched an £11.59 million fund to help charities and local councils work more closely together to deliver joined-up, preventative support in areas hardest hit by the cost of living.
The Local Covenant Partnerships (LCP) Fund, spread over three years, will focus on key issues such as mental health, adult social care, women’s refuges, and child poverty. It aims to build stronger local partnerships through new ‘local covenant’ agreements that improve collaboration and ensure people can access timely, community-based support.
The fund is part of the government’s wider Civil Society Covenant, a framework for renewing the relationship between government and civil society launched in July 2025. Up to 15 areas across England will benefit, with existing models like Sheffield’s Synergy VCSE Alliance and Greater Manchester’s Violence Reduction Unit cited as examples of effective partnership working.
Civil society organisations with experience in managing multi-stakeholder partnerships are invited to apply to deliver the fund, with applications open until 23 February 2026.
Click here for more information on this new fund.
Rising threats to charities amid hostile political climate
A troubling rise in racism, xenophobia and far-right activity in the UK is leading to increased threats and attacks on charity staff, volunteers, trustees and the people they support. Despite its scale, this issue remains under-recognised in mainstream debate. Last autumn, over 150 charity Chief Executives wrote to the Prime Minister demanding urgent action to protect human rights, while NCVO’s recent focus groups revealed widespread impact across the sector.
The Charity Commission has acknowledged these challenges and, following ongoing dialogue with DSC and others, recently issued new guidance for charities operating in this hostile environment. Key measures include updated risk management advice and an expanded list of serious incidents that charities must report, now covering credible safety threats to people or property linked to their work.
Trustees and leaders are encouraged to review this guidance carefully, especially if their organisations face or fear targeted attacks. DSC remains committed to supporting the sector and pressing government for stronger protections.
For more guidance and information on how to respond, read Jay Kennedy’s full blog here.
New Civil Society Council moves into selection phase
The government has closed applications for membership of the new Civil Society Council, a body intended to place civil society at the heart of decision-making in No.10. Expressions of interest opened on 12 December 2025 and closed on 7 January 2026, with the selection process now underway. Interviews are expected to conclude fairly soon, however timings may change.
The Council is a key part of delivering the Civil Society Covenant and will act as a senior advisory forum to government, meeting quarterly in Downing Street from early 2026. Chaired by Kate Lee OBE in her role as Chief Executive of NCVO, it will bring together around 12 representatives from across civil society, including membership bodies and individuals with frontline, governance or philanthropic experience.
The intention is to ensure a broad mix of perspectives, geographies and backgrounds, including a dedicated Youth Representative, while giving civil society a more direct and consistent voice across Whitehall. For charities, the Council’s formation is an important signal of government’s ambition to work in closer partnership with the sector, with the real test now being how this commitment translates into influence and practical change.
