Ecclesiastical and Benefact Group release economic research highlighting the hidden contribution of donations and volunteering to the UK economy
- The annual value of volunteering in the UK was £18.7 billion in 2022
- Value of charitable donations was £4.3 billion in 2022 – down £5 billion from 2021
- Three quarters (76%) of UK adults donated to charity in 2022 – up from 64% in 2018/19
A new report shining a light on the hidden value of the charity sector has been launched, providing a useful resource for brokers to speak to their charity clients. Benefact Group, which owns Ecclesiastical, has launched the Value of Giving 2022 Report, a landmark piece of research assessing the previously unstudied socio-economic value of volunteering and donating.
Its key finding was that in 2022 the combined value of volunteering and donations came to £23 billion (bn), representing 0.8% of total UK GDP – larger than the sports and gambling sector valued at £18.4 bn combined. The research, commissioned by Benefact Group, and conducted by the Centre of Economics and Business Research (Cebr), found the estimated annual value of voluntary work to the economy was £18.7bn, with charitable donations contributing an additional £4.3bn.
The new report is a useful resource for charity brokers and Ecclesiastical is encouraging brokers to share the report with their charity clients.
Value of volunteering has risen
The pre-pandemic decade saw a steady increase in the value of volunteering, rising by £7.5bn from £11.2bn to £18.7bn between 2010/11 to 2018/19.
The Covid-19 pandemic and lockdown restrictions were key factors in the annual value of volunteering falling to £11bn in 2020.
Volunteering levels have since recovered, with the estimated annual value of voluntary work in 2022 rising to £18.7bn – a return to pre- Covid-19 levels. This has been driven by a post-pandemic surge in volunteering, with the proportion of adults giving up their free time to help good causes rising from 17.9% in 2018/19 to 29.7% in 2022.
However, this has been offset by a fall in the average hours spent volunteering. Benefact Group’s report found average volunteering hours have halved since 2020, from 12 hours over a four-week period to six hours in 2022.
Charitable donations have fallen
The report found that charitable donations rose steadily from £5.9bn in 2010/11 to £9.8bn in 2020 but have since fallen to £4.3bn in 2022, following the pandemic – significantly down on the £9.3bn donated in 2021. The steep drop is likely to be due to increased living costs for UK households and soaring bills over the past year. The fall in donations also comes as inflation remains at historically elevated levels.
Richard Coleman, Managing Director at Ecclesiastical Insurance, said: “The charity sector plays a vital role to our society and the Value of Giving Report shines a light on the hidden contribution of donations and volunteering to the UK economy. As part of Benefact Group’s family of businesses, our charitable purpose makes us so much more than an insurance company. We’re proud of our reputation as one of the most trusted insurers in our markets, and of the positive impact we make on society, by giving back all of our available profits to good causes. We hope the Value of Giving Report will be a useful resource for charity brokers and their clients.”
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