In a rapidly changing political environment, staying informed about emerging trends, policies and sector developments is more important than ever. ACEVO’s policy updates explore the latest developments affecting the civil society sector, from governance and regulation to legislative changes that might impact charity leaders.
Political environment
Government priorities
It has been a busy few weeks in Westminster, despite the Summer recess, with several policy developments that could have implications for charities and civil society organisations.
Since taking office last month, Prime Minister Andy Burnham has begun setting out the direction of the new government, including reforms to the machinery of government and a renewed focus on long-term public service reform. One of the most significant announcements so far has been plans to overhaul adult social care. For leaders working in health, care and community support, reforms in this area could impact service delivery, partnerships and future funding arrangements.
The government has also signalled a desire to strengthen collaboration between central government, local authorities, public services and community organisations. This could create opportunities for leaders and their organisations to play a greater role in shaping and delivering solutions to local challenges, particularly in areas such as health, employment, housing and social inclusion.
Alongside this, changes to public procurement rules will increase the weighting given to social value considerations from 10% to 20% for contracts worth more than £5m. For charities bidding for public sector contracts, this may strengthen the importance of demonstrating community impact, local employment opportunities and wider social benefits.
In August, the Prime Minister launched a national drive to end rough sleeping by announcing funding to get ‘everyone in for Christmas’, and credit is due to the tireless campaigning and influence by many civil society leaders and organisations across the homelessness sector who will ensure that this initiative leads to longer term intervention. A first of its kind’ national summit on ending rough sleeping was also announced, to take place in the autumn, bringing together leaders from business, finance, health and faith communities.
Also in August, the government announced its first wave of funding from its £39bn Social and Affordable Homes Programme which will support the delivery of more than 70,000 homes across England. Funding will flow to 33 Strategic Partners which include councils, housing associations and other providers that have secured long-term funding certainty to deliver homes at scale.
The House of Lords are due to debate the government’s political and legislative plans on 3 September, and a briefing note has been prepared, summarising the policy announcements made so far.
The coming months are likely to bring further announcements on public service reform, employment rights, devolution and funding, especially following the Budget. ACEVO will continue to engage with policymakers and keep members updated on the opportunities, risks and emerging issues that matter most to civil society.
ACEVO research and insight
Supporting charity leader wellbeing
Through our temperature check surveys and member engagement, we continue to hear about the pressures facing charity leaders, including financial uncertainty, increased demand, governance challenges and the growing complexity of leadership roles.
To better understand the impact these issues have on the CEO role, and to delve into the structural matters that support and underpins CEO Wellbeing, the influencing team is developing a report exploring how governance, organisational culture, leadership expectations and structural pressures impact leaders’ wellbeing and identifying practical recommendations. The project is supported by WorkNest.
Supporting the influencing team, a steering group consisting of ACEVO members has been established, which will help identify and explore the most pressing themes affecting charity chief executive wellbeing, share insight and lived experience, and sense-check emerging findings and recommendations. Thank you to those members for volunteering to take part.
Consultations
The future of National Lottery funding
The Department for Culture, Media and Sport (DCMS) has launched a call for evidence on the future of National Lottery Good Cause funding. The consultation seeks views on how funding should be distributed and prioritised over the coming decades and is open until 23 September 2026.
National Lottery funding remains a vital source of support for charities, community organisations and grassroots initiatives across the UK. The outcomes of this review could shape future funding priorities and access to grants for years to come. ACEVO will be responding to the consultation and ensuring the views of charity leaders are reflected. Thank you to members who have provided their views. If you’d like to feed in, please email policy@acevo.org.uk
Changes to workplace disciplinary and grievance procedures
Acas is consulting on a new draft Code of Practice on disciplinary and grievance procedures, with a focus on encouraging employers and workers to resolve workplace concerns earlier and informally where possible. The proposed Code would apply to organisations of all sizes and could have implications for how charities approach disciplinary and grievance processes.
Acas is particularly seeking views on informal resolution, the language and tone of the Code, and how its principles should be applied by organisations with different levels of resources. Whilst many charities already seek to resolve workplace issues informally where appropriate, any changes to the Code could affect HR policies, management practices and staff training requirements.
ACEVO will be responding to the consultation and is keen to hear from members about any opportunities or concerns. Please get in touch with ACEVO’s head of influencing, Roberta Fusco if you would like to share any information.
Legislation and regulatory developments
Autumn Budget 2026
The Autumn Budget will be delivered by Chancellor John Healey on Wednesday 28 October. Whilst there has been speculation that the government could use the Budget to make wider spending announcements, it remains unclear whether this will include a formal spending review. Further details are expected closer to the fiscal event.
Current expectations are for a tax-raising Budget although increases to National Insurance, Income Tax and VAT are generally considered unlikely, meaning attention is focused on other tax measures and reliefs.
As part of the Civil Society Group, ACEVO is contributing to a joint Budget submission to ensure the voice of civil society is heard ahead of the Chancellor’s statement.
Representation of the People Bill
The Representation of the People Bill is currently at Committee Stage in the House of Commons. The report stage is set to start on 2 September. The Bill proposes a range of electoral reforms, including extending voting rights to 16- and 17-year-olds, expanding accepted forms of voter ID, introducing more automated voter registration, strengthening political finance rules and increasing the Electoral Commission’s enforcement powers. Alongside these measures, parliamentary debate has touched on wider issues including political donations, foreign influence, AI-generated election content and online misinformation.
Employment Rights Act: implementation continues
The Government has now published a more detailed implementation timetable for the Employment Rights Act 2025. Several provisions have already come into force during 2026, with further measures due to be phased in through the remainder of this year and next year. The government is continuing consultations on issues including disciplinary and grievance procedures, trade union rights, pay transparency and harassment protections. For employers in the voluntary sector, the focus is now shifting from the legislation itself to implementation and compliance.
As these updates show, the external environment for leaders and their organisations is shifting quickly. ACEVO will continue to represent members’ interests, engage with policymakers and share insights to help leaders navigate change.
We also want to hear from you. How are these developments affecting your organisation, and what issues would you like ACEVO to champion on behalf of charity leaders? Share your experiences with us at policy@acevo.org.uk.