The Department for Culture, Media and Sport (DCMS) has confirmed that, from 1 October 2026, the statutory audit threshold for charities in England and Wales will increase from £1 million to £1.5 million. This change follows a recent consultation and is part of a broader update to charity financial reporting thresholds, aimed at reducing administrative burdens and aligning thresholds with inflation.
In addition, the threshold for requiring an independent examination will rise from £25,000 to £40,000, offering further relief to smaller charities. DCMS estimates these changes could save the sector up to £47 million annually.
These updates are particularly relevant for community-managed libraries, many of which operate with modest incomes. The revised thresholds may reduce the need for formal audits or examinations, allowing more resources to be directed toward frontline services.