VODG Responds to the 2025 Autumn Budget

Responding to the Budget announcement, Dr Rhidian Hughes, Chief Executive of the Voluntary Organisations Disability Group (VODG) says: 

‘In her speech on Wednesday, the Chancellor made welcome announcements around wage increases, energy costs and SEND, but nothing to address the challenges facing adult social care and the vital support individuals, families and carers rely on. 

‘The Budget commitment to the creation of Neighbourhood Health Centres, the extension of the fuel duty freeze and the reduction in household energy bills are all positive developments, as is the Government’s commitment to setting out plans for a fundamental reform of special educational needs provision in the New Year, which we continue to engage with. 

‘However the elephant in the room continues to be the persistent underfunding of adult social care, putting unsustainable strain on local authorities and voluntary sector providers of care and support. 

'As the LGA say, councils will be rightly anxious that the Budget ‘does not provide the increase in funding they desperately need to ensure their financial sustainability, protect services, support local communities and address national priorities’. VODG members reiterate the immense pressure on charities and the difficult decisions they face given unfunded wage increases, changes to property tax and the impact of welfare and Motability changes on disabled people. 

'Social care is critical to the government’s ambitions around neighbourhood health and wellbeing, growth and job creation, but faces another year of uncertainty. As charities go above and beyond to deliver what’s needed to uphold the rights and dignity of disabled people, families and carers, we call on the government to work with the sector to ensure funding goes where it should - to frontline care and support, not into the pockets of private sector shareholders or international hedge funds.' 

Helpful Resources 

• VODG has produced a summary for members on key announcements in the Budget. 
• VODG joined tother Civil Society Group members in writing to The Treasury ahead of the Budget to set out our asks for the sector. 
• VODG’s Reframing Commissioning report with Collaborate offers provocations for change in the way services are commissioned, to make the most of available resources and maximise on the strengths of the voluntary sector. 
• VODG Budget analysis by Cordis Bright last year demonstrated the impact of unfunded wage increases and ENICs increases on charities. 
• New analysis by the Care Provider Alliance demonstrates the impact of last year’s Budget on care and support providers. Based on a survey of 236 providers, supporting over 210,000 people, following last year’s Budget...

  • 80 per cent cut investment in innovation, digital transformation or decarbonisation

  • More than 60 per cent reduced staffing or cut back training and development

  • 78 per cent could not increase staff pay to the level they needed

  • 67 per cent faced greater recruitment and retention challenges

  • 61 per cent saw pay differentials erode

  • 66 per cent expect to rely on reserves to stay operational

  • Close to 70 per cent expect to refuse new publicly-funded care packages

  • Almost 50 per cent expect to hand back existing packages

  • 20 per cent expect to shorten visits or reduce service levels

  • Up to 25 per cent expect service closures.