This year has seen a number of announcements regarding the risk of redundancies at established charities. These developments reflect the financial resilience risks discussed in our Charity Sector Risk Assessment article and strategic shifts many organisations are facing in response to rising costs and evolving service demands.
Announcements
In April 2025, it was reported that Oxfam GB had taken the difficult decision to put 265 jobs at risk as part of efforts to reduce salary costs by over £10 million. Per the article, a hiring freeze is in place, and while programme funding is being prioritised, staffing structures are under review.
Following a strategic review, in May 2025, it was reported that 307 roles were at risk of redundancy at Dogs Trust. The article noted that the charity is restructuring to ensure long-term sustainability, with plans to convert three rehoming centres into foster hubs and consolidate behavioural and educational services into more digital and hybrid formats.
These announcements reflect the difficult decisions charities sometimes need to make to adapt to changing circumstances and ensure their long-term impact.
Oversight of Going Concern
While each organisation’s context is unique, these developments offer a timely reminder for the wider sector of the importance of financial vigilance and strategic foresight.
To remain resilient, charities should ensure that:
- Going concern assessments are not treated as a formality. These should be robust, forward-looking evaluations that consider the charity’s ability to meet its obligations over at least the next 12 months from approval of the annual accounts, or indeed on a rolling basis.
- Reserves policies are critically reviewed to ensure they are fit for purpose. This includes assessing whether the level of reserves held is appropriate given the charity’s risk profile, income volatility, and future commitments.
- Going concern statements in financial accounts accurately reflect the charity’s position and are supported by detailed internal discussions and documentation.
- Stress testing and scenario planning are used to model the impact of potential financial shocks, helping trustees understand the limits of resilience and identify early warning signs.
- Ongoing financial monitoring is embedded throughout the year, with trustees receiving timely and forward-looking reports that support strategic decision-making.
Embedding these practices helps ensure that charities remain resilient, transparent, and well-prepared to navigate uncertainty, whatever their size, mission, or operating environment.
Please note that this content is not intended to give specific technical advice. It is designed to highlight some of the key changes 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.
