The Civil Society Covenant - what does it mean for Charities?.

Article | Grace Quist-Therson | 21st August 2025

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On 17 July 2025, the Prime Minister, Keir Starmer, launched the Civil Society Covenant, a new way of working in partnership with civil society organisations.

What is the Covenant?

The Civil Society Covenant sets out a new framework for how civil society and public bodies will work together at both national and local levels to design and deliver policy that works for everyone. It marks a significant shift in how government collaborates with communities, emphasising shared responsibility, inclusive engagement, and mutual respect.

The Covenant is not just a statement of intent— but a commitment to action. It aims to improve collaboration across the wider public sector, including health services, local government, and the justice system, recognising that lasting change requires coordinated efforts across all areas of public life. It applies to all UK government departments and acknowledges the vital role played by a diverse range of civil society actors, including Charities and social enterprises.

By embedding civil society at the heart of decision-making, the Covenant seeks to ensure that policies are shaped by those who understand the needs of communities best.

It is a call to listen, learn, and lead together, building a more inclusive, resilient, and empowered society.

Commitments from the Government

Joint Civil Society Covenant Council:

  • A newly established cross-sector board that will be central to the delivery and review of the Covenant
  • It will set strategic direction, monitor progress, and provide accountability for how the Covenant is implemented
  • The Council includes representatives from government departments, civil society organisations, and other stakeholders to ensure inclusive and balanced oversight.

VCSE-HM Treasury Forum:

  • A dedicated forum to strengthen dialogue between the Voluntary, Community and Social Enterprise (VCSE) sector and HM Treasury
  • It aims to address financial sustainability, funding challenges, and policy impacts on the sector
  • The forum will help ensure that economic and fiscal decisions consider the needs and contributions of civil society.

Engagement and Co-Design:

  • Government departments commit to early and meaningful engagement with civil society in policy development
  • Civil society will be involved in co-designing services and solutions, especially those affecting vulnerable communities.

Respect for Independence:

  • The government reaffirmed its commitment to respect the independence of civil society organisations, including their right to advocate and campaign.

Stable and Transparent Funding:

  • Efforts will be made to improve funding mechanisms, reduce bureaucracy, and provide longer-term financial support
  • The Covenant encourages multi-year funding agreements and clear communication around funding decisions.

Capacity Building and Inclusion:

  • Support for leadership development, skills training, and inclusive practices across the sector.
  • Focus on removing barriers for smaller and grassroots organisations to participate in national initiatives.

Looking ahead

The Civil Society Covenant has the potential to make a meaningful difference in addressing the challenges faced by the most vulnerable in our communities.

Charities and other not-for-profit organisations are uniquely positioned to contribute to this initiative, drawing on their deep understanding of local needs and lived experiences.

Their involvement can help shape more effective and inclusive policies through direct collaboration with government. It is critical that charities engage with the Covenant process and ensure their voices are heard in shaping the future of civil society.

Learn more and get advice

Get in touch with our Charities team if you’re looking to learn more about how this could affect your charity or non-profit organisation.

 

Please note that this content is not intended to give specific technical advice. It is designed to highlight some of the key issues rather than provide an exhaustive explanation of the topics. Professional advice should always be sought before action is either taken or refrained from as a result of information contained herein.

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Grace Quist-Therson

About the author

Grace Quist-Therson

Grace joined PEM’s Charities & Non-profit team in July 2025, bringing over 13 years of specialist experience in auditing and advising organisations Read more about this author …

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