Migration Exchange (MEX) acts as a bridge between funders, charities and communities working to change the UK migration system for good. We recently commissioned our third report on the state of the UK refugee and migration sector, as part of our mission to cultivate insight, collaboration and collective action.

What we found is both encouraging and worrying. Strength in Numbers shows a sector that is growing in scale and reach. At a time when political focus is on migration control, civil society is stepping up with care, courage and clarity of purpose.

But growth doesn’t equal sustainability. Many organisations are stretched thin at a time when people’s needs are only increasing and the political context feels bleak. That makes this a defining moment to sustain and strengthen our work.

Three research findings stand out:

1. We are an expanding and more inclusive sector

More than 250 charities have increased or launched work with people who are refugees and migrants since 2022. This marks a 17% increase in just two years, taking the total number of UK charities engaging in this work to over 1,700. Of these, 828 organisations form the ‘core sector’ — NGOs that focus primarily on refugee and migration issues and operate with a minimum level of resources.

Growth has been particularly striking in Scotland and Northern Ireland, where the number of core charities has increased by 56% and 69% respectively — a testament to the regionally rooted response to rising need. From legal advice and housing to youth services and community building, charities are stepping up to meet people’s need for justice with agility and empathy. This kind of distributed leadership and local action is vital — and increasingly visible.

2. More funding is flowing, but not to everyone

Our sector has gained £78 million in new income since 2022, reaching nearly £254 million in 2025 — a 44% increase. Much of this has come from a small number of independent trusts and foundations scaling up their giving. Encouragingly, more funders are also backing organisations led by people with lived experience and supporting smaller, community-based NGOs.

But disparities between regions and between small and large charities remain, alongside structural barriers. Most of the new income is going to larger charities based in England and Wales. While 62% of the core sector are small organisations (with annual incomes below £100,001), they receive just 5% of the total funding. Regional disparities persist too: for example, Scotland hosts 12% of new arrivals but receives only 6% of core sector income.

Equity in funding isn’t just about fairness — it’s about impact. A fairer distribution of resources to the communities and organisations best placed to respond is key to unlocking our collective power.

3. Funding practice is progressing, but future sustainability is fragile

Unrestricted and multi-year grants — the lifeblood of resilience — are in decline. Only 12% of funders report offering grants with an average duration of over three years, and over a quarter offer no unrestricted funding at all. This puts pressure on organisations’ ability to sustain or scale their work. As the recent Refugee Action Insight Hub survey shows, nearly half hold only 0–3 months of reserves.

Meanwhile, the sector’s reliance on a relatively small group of funders continues to deepen. 15% of funders surveyed were unsure whether their support for the sector would continue over the next two years. That’s a worrying level of uncertainty for a sector delivering such vital work.

Forging a broader, bolder alliance

We live in a volatile and polarised world with rising economic uncertainty, racism, climate change and conflict. With only a small group of funders supporting our sector — and government funding declining — our future hinges on forging a broader, bolder alliance.

This is a pivotal moment. We are many working towards a migration system built on dignity, equity and fairness. At the same time, we are pushing against a tide of divisive political narrative.

Civil society has demonstrated our capacity for growth, adaptation and leadership. Our work shows that instead of scaremongering about the UK becoming ‘an island of strangers’, we can invest in growing a community of neighbours. What connects us isn’t where we’re from, but how we care for each other.

It’s encouraging to see funders responding with increased support and more inclusive practices. But to secure a positive future — and amplify our impact — we need to deepen collaboration and renew our commitment to the values we share, matched by collective action.

In practice, that means:

• Aligning resources with need, especially in underfunded regions and among small community groups.
• More long-term, flexible funding allowing organisations to plan ahead and build lasting impact.
• Strengthening our ecosystem by encouraging more donors to join the field, and supporting collaboration and shared learning.

MEX remains committed to connecting funders, charities and communities, supporting people across the UK to turn insight into action, and shared challenges into opportunities for lasting change. Because together, we have strength in numbers.

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You can also read this blog post on our Medium page.