Howden study finds that 43% of UK charities have experienced a cyber breach in the last year
A new research report, Rewarding Industries 2025, from Howden, the global insurance intermediary group, reveals that UK charities are under cyber-attack, with 43% of organisations experiencing a cyber breach in the last year.
The report, from Howden UK&I’s specialist charity and not-for-profit division, and based on a survey of 314 financial decision-makers in UK charities, highlights that cyber fraud and hacking are significant challenges for organisations and staff, as 9 in 10 (92%) have been targeted, to their knowledge, in the last 12 months.
Key findings
- Preparedness for cyber threats: Only 24% of respondents say their organisation is very prepared for potential cyber threats.
- National Insurance Contributions (NICs) and cybersecurity top the list of concerns: 31% of respondents named the NIC increase as one of their top three business challenges, along with cybersecurity threats.
- Fundraising can’t fill the gap: 57% report that fundraising has become more difficult, and 55% say the shift away from cash donations is hurting their efforts, with 25% already moving to technology to increase fundraising via digital platforms.
- Investment in technology: 72% of UK charities are likely to invest in new technology in the next 12 months.
The report also reveals that more than a quarter (28%) of charities count technological transformation as one of their top three business challenges, with two-thirds (61%) believing that better use of technology will safeguard their organisation’s future.
Impact of increased NICs
The sharp rise in employer NICs in April 2025 — from 13.8% to 15%, alongside a lowered threshold — emerged as the single biggest business challenge for the sector, with over half warning they may not survive the year, up from 43% in 2023. This is because it imposes unaffordable costs on organisations already operating on tight budgets, with limited ability to offset the increase through price rises or fundraising.
The increase in employer NICs revealed that many charities are being forced to make difficult decisions to stay afloat. Nearly one in five (19%) are freezing or cutting staff salaries, while 21% are reducing benefits. Others are downsizing office space, switching to remote work, or seeking corporate partnerships to offset rising costs.
Optimism amidst the challenges
Despite the challenges, the report also highlights the sector’s resilience as three-quarters (72%) of charities are likely to invest in new technology or automation in the next year. Two-thirds (66%) have provided training to staff to prepare them for new technology and cyber threats.
66% of charities say their financial position has improved compared to last year, and 62% expect further improvement in the next 12 months — a testament to their adaptability and resilience.
Trusted by third sector organisations for decades, Howden recognises that charities’ needs go beyond insurance, which is why many of their solutions go beyond the traditional broking model, providing a holistic approach to managing risks, liabilities, health and safety responsibilities, and cyber security.