2025-12-18
A new report from Equi, Building Britain: British Muslims Giving Back, reveals how British Muslims generosity is increasingly bolstering frontline services across the UK.
The report highlights an untapped potential for government and policymakers: to harness British Muslim charitable giving as a partner in delivering public services, especially at a time when councils, the NHS and welfare systems are under unprecedented strain.
Headline Findings
· Britain’s most generous community: Muslim donors give £2.2bn a year- four times more than the national average, rising to ten times amongst high earners.
· Strengthening public services: Muslim-led charities provide housing aid, emergency cash grants, food support and psychological care, directly reducing demand on overstretched local authorities and the NHS.
· Proven savings: In 2023, the National Zakat Foundation’s housing support prevented evictions that would have cost councils £28.8 million. Every £1 of charity delivered £73 in public savings.
· Generational shift: Young British Muslims are increasingly donating to UK causes, tackling homelessness, child poverty and mental health crises.
· Barriers to impact: Charities face debanking, securitisation, restrictive funding rules and a lack of government recognition.
· Policy solutions: Match-funding and faith-literate policymaking could unlock billions to be spent in the UK while sustaining Britain’s global humanitarian reach.
Muslim charities are already acting as partners in public service delivery and filling gaps left by austerity and cuts to statutory services. From housing support to mental health counselling, their interventions reduce reliance on government systems and strengthen social cohesion. Yet despite this measurable impact, Muslim charities remain overlooked in national policy conversations.
“British Muslim giving is not just generosity but a lifeline for public services that needs recognising,” states Equi’s Managing Director Professor Javed Khan OBE. “From preventing evictions to supporting mental health, these donations are saving millions for the taxpayer and strengthening communities across Britain. The evidence is clear that Muslim-led action is delivering frontline support where the state is struggling. With proper recognition and collaboration, their impact could be transformative for the UK’s public services.”
Equi urges policymakers to move beyond symbolic recognition and engage meaningfully with Muslim-led charities.
By introducing UK match-funding schemes and embedding faith literacy into policymaking, government can unlock billions in vital support for local communities, ensuring stronger, more resilient public services for all.
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