Dear Colleagues,
Happy New Year!
I hope that everyone has had a restful break as we return to work and approach the new year ahead. It promises to be a year of twists and turns locally, nationally and globally.
Thinking about the VCSEF sector, I read with interest a recent newspaper editorial: ‘The Guardian view on hard times for Britain’s charities: struggling to do more with less’ (31/12/2025).
It has been a familiar story particularly over the last several years and will continue to be so for the foreseeable future. The article highlights that nationally, state funding has become more inadequate, charitable giving has reduced, fewer people are volunteering, and costs are dramatically up, which includes the impact of the rise in employers’ national insurance contributions last April. They go on to say that in 2025, the Samaritans closed half of its 200 branches, with Macmillan Cancer Support, Oxfam and Relate all scaling back their staff numbers.
In Wolverhampton, groups and organisations who set up a long time ago know the difficulties to be faced and the arduous road ahead as demands on services increase and there is less funding available. Although, through WVCA, we see a continuous stream of people coming forward to set up new groups and volunteer within their communities, what does this mean for small grassroots groups now and in the future?
The civil society covenant places charities, non-profits, community and faith groups at its centre but the Guardian highlights: ‘A Labour government aspiring to place such organisations at the heart of civic renewal should treat this state of affairs as a scandal and a challenge.’
Many groups and organisations have to subsidise services and contracts in order to meet service specifications and deliver community support. Indeed, MIND, the mental health charity, has reported that it is planning to run an operating deficit through the whole of 2026 and use its reserves after facing financial challenges: Mind plans to run one additional year of deficit amid financial challenges The Guardian notes: ‘For the majority of charities regularly surveyed by the National Council for Voluntary Organisations, grants and contracts have not covered costs since 2020’.
We know that the VCSEF sector contributes to the whole health and social care economy not only directly, but through preventative action that saves the state both financial and human resources. The Guardian finishes with; ‘The government rightly talks up the prospect of an alliance that will empower the voluntary sector to fulfil its proper vocation. In 2026, it will be time to walk the walk.’
If you are interested in discussing this or any other VCSEF sector issue, please join us at the next VCSEF Alliance Meeting.
It takes place on Thursday 22nd January 2026, from 10:30am – 1:00pm (10:15 registration, 12:30-1pm lunch) at The Workspace, All Saints Rd, Wolverhampton WV2 1EL. Book here: https://www.tickettailor.com/events/wvca/1994454
If there are any issues that you would like to raise or anything that you would like to hear more about, please contact me.
If you would like more information, please remember to check out our website and newsletter regularly – there is always new information, and opportunities are always presenting themselves.
Thank you,
Sharon Nanan-Sen
Chief Executive Officer