Save the Children UK’s income fell by £43m last year mainly due to cuts in US aid, accounts show.
The international development charity recorded income of £262.5m in the year ending December 2025, down from £305m in 2024.
This includes a £24m decrease in funding from institutional partners compared with 2024, which fell from £184m to £160m.
The accounts say this reflects the effects of US aid budgets on funding from the Global Partnership for Education and the United Nations.
The accounts say the charity’s income from other national governments, such as the German and French administrations, were also down compared with 2024.
The charity recorded £62m in donations from individuals, legacies and communities in 2025, down by £10m compared with 2024.
This was mostly due to legacy income being £8m lower than in 2024, which was an “exceptionally high” year for legacies, the accounts say.
Save the Children UK recorded £20m from corporates, major donors and trusts in 2025, down from £30m the previous year.
Its £7m decline in corporate donations was driven by lower emergency appeal income compared with 2024, several grants coming to an end and some delays in signing agreements with partners, the accounts say.
The charity also recorded £10m from trading, the same as in the previous year, despite closing some shops throughout the year.
Save the Children UK had a total expenditure of £275.8m during 2025, down from £308.8m the year before.
Most of these costs went towards charitable activities, amounting to £233.6m, while £39.7m was spent on raising funds.
The charity went through a one-off reorganisation programme during 2025 in response to changing external conditions, which is expected to deliver annual gross savings of £9m.
It incurred £2.7m in redundancy costs, which the accounts say were “partially offset by in-year staff cost savings”.
Save the Children UK told Third Sector that 63 people were made redundant through the programme’s first phase, but said the second phase remained ongoing so final numbers could not yet be confirmed.
Moazzam Malik, chief executive of Save the Children UK, said the report’s achievements reflect the dedication of staff, volunteers, partners and supporters, adding: “Together, we will continue to focus on impact, accountability and long-term progress so that every child has the opportunity not just to survive, but to thrive.
“We must also recognise the incredibly challenging financial climate and the changes we have had to make to our organisation to continue to deliver the best possible impact for children.
“I want to thank our staff and volunteers for their commitment, resilience and compassion during what has been an incredibly difficult period for many across Save the Children.”