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Voluntary Organisations: Finance

Answer

The HM Revenue and Customs Grant Funding programme is designed to build customers’ capability and confidence over time, enabling them to engage directly with HMRC and manage their tax affairs independently in future.

However, there is also recognition that for a small proportion of customers with particular needs, the holistic approach and specialist service provided by the VCS organisations may be an ongoing need. In tandem with this, HMRC will continue to improve its services to make them as accessible as possible to all customers.

The design principles for the 2027–30 programme have been strengthened to align with HMRC’s Transformation Roadmap and anticipated areas of need, including the rollout of Making Tax Digital for ITSA, and HMRC’s focus on improving compliance. This ensures that support is targeted at those most likely to benefit and supports longer-term self-sufficiency.

HM Revenue and Customs increased funding for the Voluntary and Community Sector (VCS) Grant Funding Scheme to strengthen support for customers who need extra help engaging with the tax system.

The increase reflects Departmental recognition of the successes of the existing scheme, the increasing customer base and the importance of providing additional support as HMRC modernises and expands its digital services, which can present challenges for some customers.

VCS organisations play a key role in helping those with complex needs, including individuals who are digitally excluded or lack confidence in dealing with HMRC directly.

By increasing funding, HMRC is reinforcing its commitment to ensuring that these customers can access free, independent advice and build the skills and confidence needed to manage their tax affairs, supporting the wider objective that no one is left behind.

HM Revenue and Customs has not made a specific estimate of the savings to the public purse arising from the work of organisations funded under the Voluntary and Community Sector Grant Funding Scheme.

However, the programme delivers value for money by supporting customers to get their tax affairs right, improving compliance, helping ensure the correct amount of tax is paid, and that individuals receive the entitlements to which they are entitled.

Evidence from the current programme demonstrates that funded organisations play an important role in correcting tax liabilities and supporting customers with complex needs, contributing to wider system efficiency.

HM Revenue and Customs has not made a specific estimate of the proportion of customers supported through the Voluntary and Community Sector Grant Funding Scheme who subsequently become self-sufficient in managing their tax affairs.

However, one of the key principles of the programme is to build customers’ capability and confidence over time, enabling them to engage directly with HMRC and manage their tax affairs independently in future.

HM Revenue and Customs has designed the Voluntary and Community Sector Grant Funding Programme to ensure as wide geographical coverage across the United Kingdom as possible and to ensure appropriate access to support across the United Kingdom, including for customers in Essex.

Organisations are selected through open competition and chosen from a range of regional, UK wide, and devolved nation specific organisations to maximise coverage across the UK. However, organisations are selected based on the merits and quality of their application, rather than their geographical location.

Funded organisations deliver services on both a national and regional basis, including across the devolved nations, ensuring that support is available to customers regardless of location.

This approach reflects HMRC’s assessment that a mixed model of UK-wide and regionally delivered provision is effective in reaching customers who need extra help, including those who may otherwise find it difficult to engage with HMRC directly.

Between April 2024 and March 2026, over 85,000 customers received assistance through organisations funded by HM Revenue and Customs’ Voluntary and Community Sector Grant Funding Scheme. This breaks down to about 42,000 for 2024-25 and 43,000 for 2025-26.

Based on current delivery assumptions, the programme is expected to support around 40-45,000 customers per year. As funding for the 2027–30 programme has been doubled, HMRC expects this increased investment to enable a significant expansion in the number of customers supported.

The performance measures for the 2027–30 Voluntary and Community Sector Grant Funding Programme are aligned with the Cabinet Office Grants Functional Standard and minimum requirements set by the Centre of Excellence for Grants Management.

Performance will be assessed against a range of key outcomes, including the types of support provided to customers, the nature of queries handled, and the extent to which customers have sought or received support through other channels. Participating organisations also provide information on customer demographics and the characteristics of those supported.

Monitoring requirements are designed to be proportionate to the size and value of each grant, with consistent assessment applied across all funded organisations to ensure transparency and value for money.

Secondary information

Type

Written question

Reference

9469

Session

2026-27

Grouped for answer

Yes

Subjects

Finance Revenue and Customs Voluntary organisations

Contains statistics

Yes

Link

View this Written question on www.parliament.uk