Tag: finances

More charities closed than opened in Edinburgh in 2025

THIRD SECTOR FACES GROWING PRESSURE

Charities across Edinburgh entered the new year facing a complex operating environment, as Scottish Charity Register data reveals more organisations were removed from the register last year than were newly established.

According to the register, 101 charities were registered in Edinburgh during 2025, while 122 were removed from the register.

Removal from the register can include mergers or charities completing their purpose, but the figures highlight the ongoing pressures within the voluntary sector as organisations adapt to rising costs, regulatory demands and changing funding patterns.

This local picture mirrors UK trends. The Status of UK Fundraising 2025 report found that 54% of UK charities saw their fundraising income remain static or fall over the past year, with a substantial majority attributing this to wider economic conditions. While income is not universally declining, many organisations are having to work harder to maintain stability.

Ansvar Insurance, a specialist insurer for charities and not‑for‑profit organisations, says the challenge is less about short-term survival and more about long-term sustainability.

Photo of a group of friends studying together at home

Adam Tier, Head of Underwriting at Ansvar, commented: “Edinburgh has always had an incredibly active charity sector, but these figures show just how challenging the current environment has become.

“Rising operational costs, a more competitive fundraising landscape and increased demand with an average of 27% of Edinburgh residents relying on charitable services mean organisations need to think differently about sustainability.”

To help local organisations strengthen their resilience, Ansvar is encouraging charities to explore less obvious strategies that can make a meaningful difference:

  1. Build practical partnerships: Formal partnerships with organisations serving similar beneficiaries can reduce overheads through shared back-office functions, joint fundraising and collaborative grant bids, while strengthening funding applications.
  2. Focus on long-term supporter relationships: Nurturing existing supporters through regular updates and consistent storytelling can help convert into monthly giving, providing greater stability than one-off donations.
  3. Review insurance and risk exposure: A risk assessment can highlight duplicated cover or gaps in protection. As services evolve, charities should ensure their insurance reflects current activities to avoid unnecessary costs or unexpected exposures.

Despite the pressures, the registration of new charities in Edinburgh during 2025 demonstrates the commitment of local communities to addressing social need.

Adam Tier added: “Financial sustainability isn’t just about raising more money. Often, it’s about taking a fresh look at existing processes and asking the right questions.

“The organisations that thrive are those that plan ahead, understand their risks and adapt early, positioning themselves to weather these challenges and continue serving their communities for years to come.”

https://www.cafonline.org/insights/research/uk-local-giving-report-2025#interMap

Accounts Commission: Change needed to secure East Lothian Council’s financial future

East Lothian Council must make significant progress in changing how it delivers public services as it addresses significant demographic challenges, with rapidly expanding younger and older populations. 

In its latest report, the Accounts Commission recognises many of the council’s services have improved, or at least maintained levels of performance, in the face of financial pressures. But this has come at an unsustainable cost. The council can no longer rely on using money saved in reserves to support the delivery of services. It needs to be clearer about how it will balance its budget in a sustainable way. 

Given financial constraints and increasing demand, the council now focuses on a smaller number of key priorities. The council’s commitment to engaging with residents and communities is encouraging. But it must be clear about the services deprioritised and the impacts, as it looks to bridge a £46 million budget gap in the four years from 2026/27.

The council must make significant changes in how it delivers services. It benefits from having plans for change in place, but now needs to invest further and set clear actions and targets to drive digital transformation and save money through efficiency. Continuing to develop opportunities to collaborate and share services in the face of recruitment and retention challenges is critical.   

Jo Armstrong, Chair of the Accounts Commission said: ‘Unlike most councils in Scotland, East Lothian has numbers of both rapidly expanding younger and older populations.

“This presents real opportunities as well as significant challenges and strains on staff, money and resource.

“The council must continue to hold ongoing conversations with staff and communities to shape and agree the changes it needs to make to services. 

‘It’s reassuring the council’s latest financial plans limit the use of reserves.

“Now we need to see progress on the council’s programme to change how it delivers services and improves efficiency.

“This must happen, to ensure the council’s future financial security.” 

The secret to a happy retirement? £26,000 per year, says Which?

Two-person households need an average annual income of £26,000 for a comfortable retirement, Which?’s latest research has found. 

With the past year altering many people’s spending habits or potentially accelerating their plans for retirement, finding out how much money is needed to finance a reasonable standard of living in later life has taken on an increased importance. 

Which? surveyed nearly 7,000 retirees in February about their spending to develop retirement income targets for one-person and two-person households. The findings can be used as a guide to how much people are likely to spend and how much they might need to save, factoring in the state pension and tax bills. 

The consumer champion split the income targets into three different categories – essential, comfortable and luxury – to reflect the budgeting needs of different savers. 

  • Essential: food and drink (excluding meals out), housing payments (mortgage, rent or council tax), transport, utility bills, insurance, household goods, clothes, shoes and health products. 
  • Comfortable: includes the essentials, as well as regular short-haul holidays, recreation and leisure, tobacco, alcohol and charity giving.
  • Luxury: includes both ‘essential’ and ‘comfortable’ spending categories, as well as extended or long-haul holidays, health club memberships, expensive meals out, and a new car every five years.

Which?’s research showed that retired couples spend an average of £18,000 a year on essentials. This goes up to £26,000 when including spending on categories in our ‘comfortable’ retirement bracket, and £41,000 to include the extras for a ‘luxury’ lifestyle. For single-person households these figures were £13,000, £19,000 and £31,000, respectively.

Many of the survey respondents in two-person households had spent less on things like recreation and leisure (down by 14 per cent) and transport (down by 10 per cent) this year than they had compared to before the pandemic in 2019. Spending on cars, charitable donations and groceries had risen by six per cent. 

For single-person households, spending on long-haul holidays and leisure memberships was down by 14 per cent and 9 per cent, respectively. 

Which?’s calculations found that, on average, couples need a pot of around £155,000 alongside their state pension to produce the annual income for a comfortable retirement of £26,000 via pension drawdown – or just over £265,000 through a joint life annuity. 

For single-person households, achieving a comfortable retirement would mean a pot of around £192,290 alongside a state pension to get to an annual income of £19,000 via pension drawdown, or £305,710 through an annuity. 

The consumer champion is calling on the government to press ahead with reforms to help provide savers with greater clarity about their pension savings so they can know if they are on track for later life. The government must move swiftly to set out the mandatory timetable for pension schemes to provide information to pension dashboards that give savers access to all their pensions information – including their state pension – in one place. 

Which? believes that the Department for Work and Pensions should also move forward with plans to shorten and simplify annual benefits statements, and it should ensure consumers are provided with clear information about costs and charges in one simple, personalised figure.

Jenny Ross, Which? Money Editor, said: “For many people, the events of the past year will have caused them to rethink their retirement plans and  brought the amount of money needed for later life into sharper focus.

“Our research shows that most people will need to be putting away significant sums if they want to ensure they can enjoy a comfortable retirement – but many do not have access to the clear and accessible information they need to help them plan.

“The government must move swiftly to introduce the pensions dashboard and simplify annual benefits statements to enable people to understand how much they’ve saved, what this could be worth in retirement and, crucially, extend its proposals to include how much savers have paid in charges.”