The Chancellor of the Exchequer, Rachel Reeves MP, delivered her 2025 Autumn Budget Statement, setting out the UK government’s financial priorities for now and in the future.

The Association of Mental Health Providers welcomes steps that support communities, reduce poverty, and ease pressure on public services. However, the Budget falls short of addressing the specific challenges faced by the Voluntary, Community, Faith, and Social Enterprise (VCFSE) mental health sector, which supports more than 8 million people across the UK and there was no mention of mental health at all. Here we have taken a closer look at the key asks we set out ahead of the Autumn Budget and what this means for charities and the public.

1. Sustainable, long-term investment in the VCFSE sector.

The Budget includes new spending for regeneration, AI zones, education, and local infrastructure. However, there is no direct investment for VCFSE mental health providers, nor any funding uplift for locally commissioned mental health social care.

The rise in the National Living Wage to £12.71, while positive for the workforce, will significantly increase service delivery costs. VCFSE mental health providers will need commissioners to reflect this in contract values; otherwise, services risk becoming financially unsustainable.

2. Recognition and support for the VCFSE workforce.

The mental health VCFSE workforce is essential to national mental health provision. Today’s Budget missed the opportunity to recognise these staff within workforce planning and parity discussions.

3. Addressing inequalities in the mental health system.

No targeted investment was announced to address racial inequalities, PCREF implementation, or culturally competent community mental health provision.

The Government’s commitment to roll out 250 Neighbourhood Health Centres, in areas where people experience the highest deprivation, may help improve access to primary and outpatient care more broadly. This could reduce some geographic inequalities in physical healthcare access.

4. Addressing the root causes of poor mental health.

Poverty, financial insecurity, unstable housing, discrimination, and limited access to early support are all well-established root causes of mental ill health. The Budget included welcome measures to reduce poverty and improve life chances, such as removing the Two Child Limit from April 2026, which will help 1.6 million children affected. The Chancellor also highlighted the work which has been done to create free breakfast clubs, plans to introduce a renters’ rights bill, and freezing the cost of prescriptions. This will reduce some of the financial pressures on families and children.

Today’s Budget contained several welcome measures to reduce poverty, but unfortunately, it falls short for the VCFSE sector. Without sustainable funding, mental health charities will continue to face pressure. We urge the government to recognise the essential role these organisations play and take action to secure their futures in parity with the NHS.