Charities still winning fewer than five per cent of Government contracts, recent analysis indicates
Hazra Patel, 13 March 2026
Hazra Patel, 13 March 2026
Recent analysis of Government procurement data suggests that charities continue to receive fewer than five per cent of Government contracts by value. The proportion appears broadly consistent with figures reported several years ago, despite wider discussion about increasing voluntary sector participation in public service delivery.
While the total value of contracts awarded to charities has increased in cash terms, this rise may reflect overall growth in public spending and inflationary pressures rather than a significant shift in market share.
For example, contracts awarded to charities between 2016 and 2020 were reported as totalling approximately £17 billion. Between April 2019 and March 2024, the reported value was approximately £24.4 billion. However, the latter figure represents around four per cent of total Government contract value during that period.
Charities play a significant role in delivering public services, particularly in areas such as social care, community support and specialist advisory services. Some sector commentators suggest that increased participation in public procurement could allow charities to bring their expertise and community insight to a broader range of Government-funded programmes.
Where charities are less involved in public contracts, they may need to rely more heavily on grants, fundraising and other income streams. This can create funding uncertainty, particularly at a time when many organisations face rising operating costs.
The extent to which charities secure Government contracts depends on a range of factors, including procurement rules, commissioning practices, organisational capacity and financial resilience.
Charities seeking to participate in public procurement may benefit from ensuring that their governance, financial reporting and internal controls are robust and capable of meeting contractual requirements.
As public spending priorities continue to evolve, it remains to be seen whether the proportion of contracts awarded to voluntary organisations will change in the coming years.
For charities considering opportunities in Government procurement, strong financial governance and clear reporting processes are essential.
If your organisation is exploring participation in public procurement or reviewing its financial readiness for larger contracts, our team would be pleased to discuss how we can help. Get in touch with our Charity Partner, Hazra Patel (hazrapatel@lubbockfine.co.uk).
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