Stonewall has confirmed that 44 staff were made redundant over the past year as LGBTQ+ charities grapple with mounting financial pressures.

The LGBTQ+ charity attributes the downturn to a combination of factors: the cost-of-living crisis reducing charitable giving, a global backlash against diversity, equity and inclusion (DEI) initiatives, and changes to its own strategy. 

The UK-wide LGBTQ+ charity saw its cash reserves fall dramatically from £998,000 to just £92,000 in the past year, from March 2025.

Severance payments for staff who lost their jobs totalled £276,000, while overall staffing levels were reduced by around a third. Stonewall expects the cuts to save approximately £1.5 million a year.

The accounts reveal a sharp downturn in the charity’s finances. Corporate donations, programme income and events revenue all declined significantly over the period.

Staff were warned last year that a squeeze on funding would lead to restructuring, and the latest figures lay bare the scale of the challenge.

In its annual report, the board said: “There were no free reserves at the end of 24–25 after the cost of the restructures. Having undertaken all the necessary steps to address the deficit, we are now taking action to rebuild the reserves in line with best practice.”

Trustees struck a note of resilience, adding that the charity had removed its underlying financial deficit, reshaped its workforce and trustee board, and narrowed its strategic focus. “We face the future with courage and determination to deliver on our purpose to make the world a safe and equal place for LGBTQ+ people to live, work and thrive,” they said.

One trustee with experience across multiple charities said LGBTQ+ charities and organisations nationwide are struggling, as companies slash DEI budgets and corporate sponsors withdraw.

Alex Farrow, head of the Kaleidoscope Trust, pointed to a “devastating” loss of international funding following Donald Trump’s return to the US presidency, warning that LGBTQ+ charities are operating in a far more hostile environment than even five years ago.