Policy & Governance update: August 25

AUGUST 2025: A summary of the latest UK Government policy changes and news.

1. Consultations

There are several consultations now open that may be of interest to members. The Almshouse Association will be writing responses, so do please get in touch with anything you would like us to consider in our submissions. Members are, of course, welcome to submit individual responses as well.

• How to implement Social Rent convergence – 27 August 2025
  
  This consultation seeks views on how to implement Social Rent convergence, as part of the government’s 10-year rent settlement for social housing. This would be permitted at either £1 or £2 per week.
• Proposed reforms to the WaterSure support scheme – 1 September 2025
  
  The Department for Environment, Food and Rural Affairs (Defra) is proposing reforms to the ‘WaterSure’ scheme. These proposals will offer stronger protection to low-income households with high essential water use.
  
  WaterSure caps bills for low-income households on means-tested benefits who need to use high levels of water because they have either: a qualifying medical condition or, three or more children in the household. WaterSure caps the household’s water and sewerage bill at the amount of the average household water and sewerage bill in the water company’s area.
  
  The scheme is administered through the individual water companies. For more information on the scheme click here.

2. Water Compensation

The Government have recently announced that water companies will increase compensation payments to customers up to tenfold from 2 July, ensuring that the public are more fairly reimbursed for supply issues and low standards of service.  

• Triggers for compensation to be expanded to include company failure to conduct meter readings and installations.
• Customers will automatically receive more money for issues such as continued low water pressure and cancelled appointments. 
• No action will be needed from eligible customers as payments will automatically be credited back to their accounts. 

3. Update to fundraising code of practice

Fundraising regulation in the UK is evolving to reflect modern fundraising practices. A new Code of Fundraising Practice has been published by the Fundraising Regulator offering a clearer, more adaptable approach to fundraising regulation.

• The new code is effective from 1 November 2025,
• Fundraising organisations should review the new code and support guides and begin preparing to ensure compliance.
• The new Code of Fundraising Practice, and accompanying support guides can be accessed here,

4. Civil Society Covenant

The Civil Society Covenant was announced on 17 July 2025. It is a set of principles designed to help build effective partnerships across civil society and government.

Charities might find this page useful – it offers guidance and further resources on putting the Covenant into practice.

5. Nat West Social Housing Fund

NatWest has launched new lending of up to £500 million, entirely ringfenced for the building of social rent housing across the UK. The social loan will be available to housing associations which are existing customers of NatWest Group and meet the applicable eligibility criteria.

For more information see the press release here.

6. Housing Qualifications

On 2 July 2025 Matthew Pennycook announced that there will be a new Competence and Conduct Standard, which will come into force in October 2026.

There will be a three-year transition period for large providers, and a four-year transition for small providers. No more details have been published.

The Almshouse Association will continue to monitor the situation and encourage Government to consider exemptions for trustees and micro charities.

posted 30 July 2025