Charitable Giving in Britain Plummets by £1.4bn Amid Cost of Living Crisis
A recent analysis by the Charities Aid Foundation (Caf) has uncovered a significant downturn in charitable giving across the United Kingdom, with public donations to good causes falling by more than £1.4bn in 2025. This decline marks a stark shift in societal attitudes, as fewer Britons are contributing to charities, with many citing financial constraints as the primary barrier.
Rising Affordability Concerns Impact Donations
The report highlights that nearly half of people (49%) who did not donate to charity in 2025 attributed this to an inability to afford it, a notable increase from 44% in 2024. This trend is exacerbated by the ongoing cost of living pressures, which have intensified over the past decade and accelerated during the Covid pandemic. Mark Greer, managing director of Caf, emphasised that charity giving is no longer a deeply embedded cultural norm in the face of these economic challenges.
He stated, Charities can no longer depend solely on habitual generosity or goodwill from the public. The consequences are already being felt, with major organisations like Macmillan Cancer Support, Samaritans, and Oxfam implementing substantial cuts to staff and budgets.
Long-Term Decline in Donor Base
Over the past decade, the UK has seen a contraction in its donor base, with Caf estimating that 6 million fewer people gave to charity in 2025 compared to 2016. This could potentially shrink total voluntary sector income by approximately £12bn. Philippa Cornish, client relations director at Caf, remarked, The decline in charitable donors over the past decade is stark. Giving is no longer a habit in this country.
Overall donations fell from £15.4bn to £14bn in 2025, driven by a reduction in the average size of charitable gifts from £72 to £65. While donor numbers had previously declined but remained stable due to dedicated donors giving larger amounts, last year saw both donor numbers flatline and donations decrease.
Shifts in Donor Priorities and Attitudes
Lack of affordability was cited as the main reason for not donating across all income demographics, including those earning over £125,000 annually. Additionally, there are signs of growing scepticism, with 49% of higher-rate taxpayers expressing disinterest in charities. This reflects a broader societal shift, as noted by Peter Grant, a philanthropy expert at Bayes Business School, who linked the decline to a more polarised society and culture war attacks on organisations like the RNLI and National Trust.
Overseas aid charities have been particularly hard hit, with donor participation dropping from 20% in 2016 to 11% in 2025, resulting in a £250m annual decrease in donations. Caf attributes this to a preference for causes closer to home. In contrast, UK food banks have seen increased support, receiving £610m in 2025, surpassing donations to arts, culture, science, education, and homelessness causes. However, even food banks report struggles in attracting regular donations, as highlighted by Swansea Foodbank's observation that supporters are prioritising their own families during the crisis.
Implications for the Voluntary Sector
The fall in public donations coincides with years of cuts to government grant funding for charities, further straining the sector. Grant warned that while many charities may survive, reduced services and increased hardship for beneficiaries are likely outcomes. Kate Lee, chief executive of the National Council for Voluntary Organisations, expressed concern, stating, The drop in giving is a worrying sign for the sector. At a time when demand for charitable support is rising, a decline on this scale could present serious challenges for many organisations if the trend continues.
Caf's annual report, based on a nationally representative survey of nearly 13,000 UK adults, underscores the urgent need for adaptation within the charitable landscape as economic pressures reshape public generosity.
