Closing this year’s ICAEW Charity Conference, Stephanie Peacock, the Minister for Sport, Tourism, Civil Society and Youth, said real change requires a new era of partnership that supports civil society to be more resilient and brings it closer to the heart of government.

“We are an ambitious government that wants to see change, but we know we can't do this from Whitehall alone. Civil society organisations are integral to this, and we have called for a decade of national renewal, driven forward by the delivery of our five missions.”

Peacock said the government’s Civil Society Covenant, launched in July last year, embodies its ambition to recognise the value of civil society and for every part of government to partner and collaborate with civil society at national, regional and local levels.

As part of the Covenant - a high-level reciprocal agreement between UK government and civil society developed in collaboration with the sector - a Civil Society Council chaired by Kate Lee, CEO of the National Council for Voluntary Organisations, will meet quarterly in Downing Street and be supported by a dedicated team in Number 10.

Meanwhile, the Department for Culture, Media and Sport would launch a new Local Covenant Partnership programme to support local government, public service providers and civil society organisations to work collaboratively to better meet the needs of their communities.

Peacock applauded the contribution of trustees, volunteers, employees and professional advisers, but warned that making the Covenant a reality will require action and commitment at every level of government and across civil society.

Peacock, herself a patron of dementia charity BIADS, said she recognised the financial challenges facing the sector and said the government is committed to removing tax barriers where possible.

Charities and donors received around £6.7bn in tax relief in the 2024/25 tax year, including £1.7bn paid out under the Gift Aid scheme.

“Beyond tax, we are backing our partnership with direct investment, including the £440m distribution via our new Dormant Asset Strategy and the £500 Better Futures Fund, the largest outcome fund of its kind in the world.”

Peacock said the government is committed to reducing administrative burdens on businesses and charities across the UK by 25% by the end of this parliament. Changes to charity financial thresholds in England and Wales are due to come into force this year.

“By updating these thresholds for the first time in years, I'm pleased to say we expect to save the charity sector £47m  every single year. I'm pleased to be working closely with the Charity Commission to explore where further administrative cost savings could be made,” said Peacock.

“I hope the sector feels reassured that this is about proportionate regulation. We want to ensure that regulation remains effective and keeps public trust high, but we don't want it to become a barrier to growth.”

The minister has also committed to the development of a place-based philanthropy strategy – an approach that focuses on specific geographic locations or communities - to encourage philanthropy across the nation.

Meanwhile, the Office for the Impact Economy launched in November 2025 to act as a central point for impact investors, philanthropists, and purpose-driven businesses to collaborate with government. The organisation aims to provide a front door to investors and purpose-driven businesses to extend their social impact across the nation.

“My department will be working closely with the Office for the Impact Economy to build capacity and capability, driving cross-government strategy at all levels of government to make every pound of public funding go further,” Peacock said.

Given the sector’s reliance on people, Peacock said the government is making it easier to volunteer through its new open data infrastructure initiative, which will make it easier to publish, find and access volunteering opportunities.

“We're proud to be supporting the 2026 Big Help Out campaign, which will encourage millions of people to make a difference in their communities by getting involved from 5 to 8 June.”