Membership-based Charity Organisations

Liz Jarvis Excerpts

Wednesday 17th December 2025 Westminster Hall

[Liz Jarvis (Eastleigh) (LD)]

It is a pleasure to serve under your chairmanship, Mr Twigg, and I congratulate the hon. Member for Gosport (Dame Caroline Dinenage) on securing this important debate. It is also a pleasure to serve with her on the Culture, Media and Sport Committee.

I begin by paying tribute to some of our fantastic membership-based charities, including the National Trust, the Royal Society for the Prevention of Cruelty to Animals, the Royal Society for the Protection of Birds and English Heritage, which play a central role in our national story and do so much to enrich the country’s cultural, social and environmental life. Liberal Democrats recognise that membership-based charities safeguard our cultural and natural heritage, strengthen community life, and provide vital service that the Government alone cannot deliver.

Last month, in response to my question at the Culture, Media and Sport Committee’s pre-appointment hearing for the chair of the Charity Commission, the successful applicant, Dame Julia Unwin, said that the hike to employer national insurance contributions was:

“a crushing blow for many charities.”

We are already seeing the consequences. In July, the National Trust announced plans to cut 6% of its current workforce, or around 550 jobs. At a time of sustained financial pressure across the charity sector, the Government should not be adding additional burdens and barriers.

As we have heard, gift aid for membership-based charities is crucial, supporting organisations in increasing their fundraising income and financial stability, and enabling them to have a greater impact. In the tax year ending April 2025, UK charities received £1.7 billion in gift aid, but only around half of the value of gift aid payments went to charities that received less than £1 million each.

There is concern among membership-based charities that the implementation of the Digital Markets, Competition and Consumer Act 2024, which was introduced by the previous Government, risks jeopardising the ability of those charities to claim gift aid on membership subscriptions. Organisations including the Tate, the Royal Horticultural Society, the Royal British Legion and the Wildlife Trusts have penned a letter to the Prime Minister stating that risking charities’ ability to claim gift aid on membership would increase cost pressures and could lead to them having to reduce their services. Will the Minister commit to bringing forward the necessary secondary legislation without delay to close the loophole in the Act and guarantee that eligible membership subscriptions continue to qualify for gift aid so that charities can plan ahead and protect the services our communities rely on?

Before concluding, I would just like to take this opportunity to give a shout out to some of the amazing charities in my constituency, such as the Pavilion on the Park, Citizens Advice, YMCA Eastleigh, Age UK, Two Saints housing, Guide Dogs, the Asian Welfare and Cultural Association Eastleigh, the Blue Cross and 1Community. I urge the Government to look again at what more they can do to support those charities, including reversing the increase to employer’s national insurance contributions.

Liberal Democrats welcome the Government’s commitment to greater engagement with civil society as part of the civil society covenant. However, we urge the Government to make that covenant a reality and look again at policies that run counter to its spirit. I hope that the Minister will engage in further discussion with organisations such as the National Trust, which is facing a potential cost of around £50 million in income if it can no longer claim gift aid on membership subscriptions.

At a time of rising costs, pressures and increased demand, the Government must do all they can to avoid adding additional burdens and barriers on our incredible membership-based charity organisations. Protecting gift aid, fundamentally addressing the crisis in charity funding, and honouring the commitments set out in the covenant are essential steps forward. Small and large membership-based charities safeguard our cultural and natural heritage, support vulnerable young people and families, strengthen community life and provide the services that the state all too often fails to cover. I urge the Government to take all necessary steps to support charities so that they can maximise their impact for the people and communities who depend on them.