What the Autumn Budget 2025 Means for Finance Leaders in the Non-Profit Sector

The Autumn Budget 2025 has arrived. Understanding the implications of this year’s budget on the financial health of non-profits working in housing, charities, and higher education will be crucial for navigating the challenges and opportunities ahead.

Continue to attract and retain the right finance talent and build staffing strategies to help your organisations succeed amidst changing economic conditions.

Jump To:

• Key Points from the Autumn Budget 2025
• Implications for Housing Associations
• Implications for Charities
• Implications for Higher Education
• What These Changes Mean for Non-Profit Finance Teams

Key Points from the Autumn Budget 2025

The Autumn Budget 2025 has unveiled a range of measures, including tax reforms, public sector investment, and spending reviews that will directly affect non-profit organisations. While the budget includes some positive moves, it also highlights several challenges, especially regarding staffing costs and funding streams.

• Increasing Employment Costs
  National minimum wage thresholds are set to rise in April by 4.1% for over-21s, and 8.5% for 18- to 20-year-olds. This compounds the impact of previous national insurance increases. For many non-profits, particularly in sectors such as social housing and charitable services, these increases will put additional pressure on already strained budgets.

• Social Housing Rent Convergence
  The budget reconfirmed Labour’s commitment to re-introducing increases to social housing rents; however precise details are delayed until January 2026. Equalising social housing rent will allow housing associations to invest larger sums into property maintenance and construction and allow them to bid more effectively for funding from the Social and Affordable Homes Programme.

• International Student Levy
  Universities will be charged a flat fee of £925 per international student for each year of study from August 2028. The intention is that the money raised will be reinvested back into higher education and provide additional maintenance grants for disadvantaged students, however administering these fees is likely to be costly and potentially discourage international students from attending UK institutions, further reducing university budgets.

Implications for Housing Associations

The social housing sector, already facing significant challenges, continues to wait for the government to announce its policies regarding rents. While many housing advocates and industry leaders are hoping for a strong rent convergence policy in January, while we wait housing providers will continue to operate with limited resources, and the delay is likely to prevent the government from meeting its ambitious social housing targets.

Additionally, tax rises affecting the private sector, such as the high-value council tax surcharge and changes to capital gains tax (CGT), could have a knock-on effect on social housing development, leading to a potential slow-down in supply.

Housing associations could find it harder to compete for funding and development opportunities in this environment, making it even more crucial to manage their financial and staffing strategies carefully.

Additionally with increased operating costs, including wages for frontline workers and fewer resources to devote to expansion and development, attracting and retaining skilled finance staff will be key to minimising the impact without sacrificing service quality.

Implications for Charities

Charities are already navigating falling funding, rising costs, and climbing demand. The 2025 Autumn Budget highlights how these pressures could be compounded, with reductions in public giving potentially exacerbated by changes to the tax regime.

Reduced incentives for donors and continued inflationary pressures may result in fewer donations, while at the same time, charities face an increasing need to provide services in response to heightened demand.

For finance leaders this could mean having to reallocate resources and reassess fundraising strategies. Increased staffing costs, driven by minimum wage rises and inflation, will impact their ability to support critical programs without compromising staff welfare.

Competing for talent in a market already strained by economic conditions, recruiting and retaining skilled finance professionals is an even more significant priority.

Strong employer branding and a focus on work-life balance could help charities attract mission-driven individuals who are passionate about making an impact but also seek a flexible and supportive work environment.

Implications for Higher Education

The higher education sector faces a unique set of challenges following the Autumn Budget 2025. The overall impact of the budget on university finances appears negative. The higher international student levy, particularly from 2028 onwards, could further deter international students, leading to a reduction in revenue for universities, many of which rely heavily on this income.

However, there is a silver lining for UK universities in the new international student levy. While the levy will increase, it’s structured in a way that offers more predictability than initially feared. The government has opted for a fixed and manageable charge, which allows universities to better plan for the future and ensures that the contribution from international students remains consistent without causing the disruption many had anticipated.

Other funding sources for higher education institutions are also expected to decrease, despite an inflation uplift to tuition fees for UK students. One estimate puts the potential additional costs of the international levy as high as £780m, with an inflation uplift to tuition fees expected to raise just over half that amount annually. This leaves many institutions facing financial instability.

For finance teams in higher education, this could result in difficult decisions regarding staffing and the allocation of resources. Recruitment of finance professionals may need to focus on candidates who can navigate these difficult financial landscapes and bring strategic insights to ensure sustainable operations.

What These Changes Mean for Non-Profit Finance Teams

Considering the Autumn Budget 2025, non-profit finance teams are likely to face increased pressure to manage budgets effectively. Rising staffing costs, combined with financial uncertainties across the housing, charity, and education sectors, will make it more challenging to maintain service levels without sacrificing employee satisfaction or long-term viability.

This means rethinking recruitment strategies, improving financial reporting and forecasting, and potentially increasing reliance on technology to manage costs and improve efficiency. The need for skilled financial professionals who can work with limited resources while maximising impact will be critical.

At Boston Hale, we specialise in recruiting skilled finance talent for non-profit organisations across housing, charities, and higher education. With the Autumn Budget highlighting the importance of strategic financial management, our team is committed to helping you find the right professionals to navigate these challenging times.

If you are looking for support in building your finance team or need help attracting and retaining talent, contact Boston Hale today.

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