Small Charity Sector

Jim Shannon Excerpts

Tuesday 3rd March 2026 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Sir Roger. I thank the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) for leading the debate. We should do more to ensure the long-term sustainability of the charity sector.

I declare an interest as chair of the all-party parliamentary group for international freedom of religion or belief. Our secretariat is run by a small charity called the FoRB Foundation, the task of which is to raise awareness, recover rights and rebuild the lives of those affected by FORB violations. The foundation has many volunteers who make the time to do many things.

The charity sector in Northern Ireland is a major employer, with some 53,620 employees, representing some 7% of the total workforce. Some 4.3 million people across the UK have sought the support of charities in recent years, highlighting the need for charity support nationwide.

Let me name a few of the charities in my constituency. The Ards suicide awareness group started a few years ago, and it reaches out to try to help those of a male disposition, and in respect of those who have unfortunately lost their lives. There are also food banks, the Home-Start team, the Beyond the Battlefield veterans team, and the Link, where a number of churches come together to give help.

Beyond the Battlefield provides pivotal and comprehensive support for veterans, service members and their families. It offers free, specialised services, including counselling for post-traumatic stress disorder; housing assistance for the homeless; help with war pensions, benefit entitlements and medical claims; and support through tailored long-term care.

The Newtownards food bank, which is run by the House church—Richard, Natalie, Lisa and their team—reminds us all of the scale of how food poverty is affecting Northern Ireland, and how critical the small charity sector is in terms of food poverty. Those are just a few of the charities in my constituency.

Between 2014 and 2023—excluding the pandemic years 2020 to 2022—the average number of registered charities that was removed annually was about 63. That tells us that there is a decrease in the number of charities being sustained annually. Many small charities, especially those with limited reserves, are under significant pressure, and that has been exacerbated by cuts to core Government grants.

Sustained Government support is critical for the survival and effectiveness of Northern Ireland’s small charity sector. Without adequate funding, many organisations will face closure or the scaling back of essential services, putting vulnerable communities at risk. We must never underestimate the impact of charities on the community and how they have saved so many from personal and financial devastation. I very much look forward to the Minister’s response; not to throw any pressure on her, but the charities need help.

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[Stephanie Peacock]

That is a very fair point, and one that I have seen in my own constituency of Barnsley. In the interest of time, I will not share the details of my example, but I will take that point away and write to the hon. Lady directly on it. We want to address that specific point through the covenant.

Moving on to the second point of my hon. Friend the Member for Southport about tax reliefs for charities, charities and their donors received around £6.7 billion in tax relief in the 2024-25 tax year. The long-running gift aid scheme has raised over £1.7 billion alone during that period. I attended a roundtable hosted by Amazon and co-chaired by Gordon Brown on the new VAT relief for business donations on goods to charities. As the Chancellor announced at the Budget, that new relief will increase the supply of essential items available to charities and make it easier for businesses to support charitable work. The former Prime Minister deserves huge credit for his leadership on that issue throughout his establishment of Multibank.

As he outlined in his speech, the right hon. Member for Chingford and Woodford Green and the Centre for Social Justice have a keen interest in growing philanthropy in the UK, especially for small charities. A number of other Members raised that issue too. We recognise that many small charities rely on donations from the public to support their work, and while I am aware that there is more work to do, I acknowledge the £15 billion that was donated last year. We want to better connect, unlock and partner with philanthropists to mobilise private funds for public good, a point put to me by the hon. Member for Eastleigh (Liz Jarvis). I recently chaired a roundtable on that subject, bringing together philanthropists, business leaders and other Government Departments to discuss how we can build philanthropic giving into Government missions.

We are committed to a place-based philanthropy strategy. That will set out how the Government can create an environment that encourages philanthropists to support local communities and ensures that the benefits of philanthropy are felt nationwide. Indeed, the hon. Member for East Wiltshire (Danny Kruger) raised the issue of philanthropy being a priority for the City of London. I was pleased to attend and speak at the Giving and Impact summit last year at the London Stock Exchange.

The shadow Minister mentioned the Office for the Impact Economy. Launched by the Prime Minister, it is the Government’s new central hub for investors, philanthropists and businesses looking to make social impact. The office will make sure that charities can access funding beyond traditional grants and give direction to individuals and organisations looking to make a difference. I am happy to set up a meeting for Members who are interested in that area with the new office, so please do contact me.

We cannot debate charities without mentioning volunteers. Volunteers keep charities running, with around 12 million volunteers giving their time and commitment each year. Yesterday in York, I met the National Association for Voluntary and Community Action, which shared with me the work it does to encourage people to get involved in a variety of ways. It was a particular pleasure to speak to the young volunteers, and I wish the York Centre for Voluntary Services the very best with its volunteering fair tomorrow, which will bring together many charities from across their city.

[Jim Shannon]

The Minister is right to recognise the importance of volunteers, and we all recognise that—we meet them every day of our lives—but charities also employ people and pay their wages, so there is an economic advantage to having them as well. Does she recognise that?

[Stephanie Peacock]

I absolutely recognise those volunteers and staff members, who often do huge amounts of work to deliver amazing outcomes. The hon. Gentleman makes an incredibly important point, as always. I know that volunteers across the country dedicate their time—week in, week out.

If the House will indulge me, I want to share an example from my own area of Barnsley. Last Saturday, I took part in the Barnsley parkrun along with my hon. Friend the Member for Barnsley North (Dan Jarvis). It is a brilliant initiative, organised by volunteers every week. We ran the parkrun alongside Oliver Smith, who is just nine years old. He is running nine marathons in four months to raise money for the Brain Tumour Charity following his dad’s diagnosis. Oliver’s commitment to fundraising and raising awareness is incredibly inspiring, and I want to take this opportunity to pay tribute to all his amazing efforts. I was also pleased last week to visit a small charity in Barnsley, the Barnsley Hospital Charity, which has run a number of campaigns over the years and is currently raising funds particularly for breast cancer care.

My Department wants to do what it can to support volunteering. We have commissioned an open data initiative that will help break down barriers for more people to get involved in the causes that mean the most to them. It will make it easier for small charities to advertise volunteering opportunities and expand their reach, generating further support and interest for their work in their local areas.