Faith groups and Catholic organisations respond to UK budget

Houses of Parliament - Image: ICN/JS

The UK Government's Autumn Budget 2026 was unveiled today, 28 October, with Chancellor John Healey announcing measures affecting tax, pensions, benefits, savings and more. Several faith groups, Catholic organisations and individuals have issued their first comments.

SVP

The St Vincent de Paul Society (England and Wales) has welcomed measures in the Chancellor's Autumn Budget aimed at easing pressure on household finances, while calling for further action to address the root causes of poverty and disadvantage.

Kate Nightingale, CEO of SVP England and Wales, said: "We welcome measures that will help ease the financial pressure on households, particularly at a time when so many people are struggling to afford the essentials. Any steps that help people keep more of their income and manage their household bills are welcome.

"However, short-term financial relief must be accompanied by a longer-term commitment to tackling poverty. Our members and volunteers see the impact of financial insecurity every day, supporting people who are doing their best to manage but still cannot make their money stretch far enough.

"We need a social security system that provides access to secure and affordable housing and sustained investment in the local services and community organisations that support people through difficult times.

"People should not have to choose between heating their homes and putting food on the table. We urge the Government to build on today's announcements with lasting action that protects dignity and prevents hardship."

Catholics in Fundraising

Catholics in Fundraising (CiF) has responded to Budget 2026 by calling for philanthropy and responsible stewardship to become part of the national conversation about wealth creation and investment.

John Green, Chair of CiF, said: "The Budget rightly recognises the importance of entrepreneurship, investment and wealth creation. But alongside encouraging successful people to invest again, we should also be encouraging them to give again."

"For Catholics, wealth creation and stewardship should not be separate conversations. The question is not simply how our wealth grows, but what good we choose to do with it."

The Budget confirms that the National Living Wage will rise 3.9% to £13.21 an hour from 1 April 2027, increasing costs for charities employing significant numbers of lower-paid staff.

CiF says charities should reflect these higher costs in future budgets, grant applications and fundraising targets.

The organisation also welcomed the Budget's greater emphasis on prevention and early intervention. A new category of ringfenced preventative spending is planned for the 2027 Spending Review. The approach is illustrated by £432 million for tackling rough sleeping, with the Government estimating the fiscal cost associated with each person sleeping rough at around £14,000 a year.

John Green said: "Catholic charities know from experience that early intervention can prevent much greater human and financial costs later. Recognising the long-term value of preventative work is therefore particularly welcome."

CiF says the Budget provides an opportunity to broaden the conversation about generosity beyond regular donations from income.

John Green added: "For those fortunate enough to have accumulated investments, businesses, property or other assets, generosity should encompass the whole of their financial life.

"Gift Aid, major philanthropy, faith-consistent investment and charitable legacies can all form part of good stewardship. Britain needs successful businesses and productive investment, but it also needs a flourishing culture of generosity.

"The deeper question is not simply how much wealth we create, but what that wealth is ultimately for."

CiF is exploring these questions through its online The Good Steward programme email john@catholicsinfundraising.com for more information or to register.

Just Money

This week, faith leaders and organisations from across the UK, coordinated by JustMoney Movement, came together to call for a fairer tax system, addressing the injustices that allow wealth to accumulate in the hands of a few while key services like schools, hospitals and climate action remain underfunded. read their letter HERE.

Following today's Budget, we welcome measures to support households struggling with the cost-of-living crisis, including a £100 energy payment that will help 20 million households. Those on the lowest incomes are hardest hit by rising energy bills, and targeted support is vital. We also welcome the extra 3% surcharge on banks, which the Chancellor outlined will pay for energy bill support, although there is much more that could be done here. The UK's largest banks have reported huge profits in recent years, while backtracking on their climate commitments, and it is right that the financial sector contributes fairly to the society and economy from which it benefits.

We also welcome measures to support local high streets and small businesses alongside action to ensure online marketplaces collect VAT effectively from large sellers. Closing tax loopholes helps create a fairer playing field for independent retailers and high street businesses competing with major online platforms. It was also good to see promises to resource HMRC more effectively to make sure that people pay the tax they owe, when they owe it. This is something we've been calling for. But the biggest issue remains - global companies not paying their fair share of corporation tax. Through our Challenge Amazon campaign, JustMoney Movement is calling for a fairer global tax system that ensures big businesses pay what they owe.

We are disappointed that the Chancellor has not taken this opportunity to equalise Capital Gains Tax (CGT) rates with Income Tax rates. With growing support for reform across the political spectrum and among the public, we believe this issue must remain firmly on the agenda to help tackle inequality. We will continue to campaign on this issue and on other measures to tax wealth, including progress towards implementing an annual wealth tax on assets over £10 million.

Today's Budget offers some welcome steps, but with inequality and polarisation on the rise, now is the time for a much bolder conversation around what a fair, flourishing and inclusive economy looks like. As Christians, called to love our neighbours, this is a conversation we need to be part of.

JustMoney Movement will continue to work with faith communities and others to advocate for a tax system that tackles inequality, supports a just transition to a greener economy and enables all our neighbours to thrive.

Join the movement: https://justmoney.org.uk/#sign-up to pray, act and speak out with us!

Students

Two Catholic students based in London told ICN they felt disappointed because "once again, students and young people have been left out of the budget."

They said: "There nothing on student loans." They noted that the budget has slowed down planned increases to the 18-20 minimum wage...

"For young people already dealing with high living costs, student debt and an unequal minimum wage, this budget is unhelpful."