The voluntary sector's income from government grants and contracts fell by £1.7bn in real terms in the two years to 2012/13, new figures from the National Council for Voluntary Organisations show.
According to the UK Civil Society Almanac 2015, the voluntary sector's income from government in 2012/13 was £13.3bn, made up of £11.1bn of income from contracts and £2.2bn in grants.
The figures, which are based on a sample of about 6,000 charities' accounts filed with the Charity Commission, show that the sector's total income and expenditure remained broadly flat when compared to year 2011/12, at £40.5bn and £39.3bn respectively.
The almanac shows that income from individuals rose by 1.4 per cent in real terms between 2011/12 and 2012/13 to £18.8bn. It says the total number of people employed in the UK voluntary sector grew by 21,000 to 821,000 in the year to March 2014.