The state of social clubs: challenges and opportunities

Key challenges and opportunities in the social club sector.

Social clubs need some love.  As democratic, community-owned institutions, they offer social and cultural opportunities at grassroots level.  However, many clubs are struggling.

A recent survey of 50 clubs across England and Wales conducted by the Centre for Democratic Business found that 83% of clubs would describe their finances as poor to fair.  Over one third of clubs surveyed have borrowed money, and almost three quarters expect they will need to borrow money over the next few years. 

These financial challenges are prompting governance changes.  According to the survey, 21% of social clubs have already changed their legal structure, and 19% are considering it in the near future.  Anecdotally, we understand this shift is largely driven by the desire to implement an asset lock, which can enable social clubs to access development grants that were previously unavailable.

Considering legal structure changes for your social club

Most social clubs are set up as societies under the Friendly Societies Act 1974 or the Co-operative and Community Benefit Societies Act 2014.  Clubs registered under the 1974 Act may consider conversion to a 2014 Act society, to move to a more modern structure.  Doing this would introduce the option of a statutory asset lock, which may increase the ability to attract grant funding, although care would need to be taken if a club wished to retain its mutual trading status. 

Updating social club rules: why it matters

Even if a club decides against changing its legal structure, it would be well worth considering whether a social club should update its rules.  According to the Mutuals Team at the FCA, over 60% of clubs haven’t amended their rules in at least 25 years, with some clubs operating under rules dating back to the early 20th century.  

Having a robust set of fit-for-purpose rules is hugely important when it comes to resolving governance issues within a society. 

Additional challenges for social clubs: legal and operational issues

Many clubs are struggling to meet their legal obligations, particularly around filing accounts and annual returns, employment issues, holding meetings and the recruitment and retention of officers.  Some clubs need support to resolve membership disputes or train their officers.  The need for clear, practical advice on how to fulfil these obligations and resolve these issues is evident across the sector.

Where clubs repeatedly fail to file accounts and annual returns, there is a real risk that they will be deregistered by the FCA.  This can cause significant and expensive problems where a club owns property, because there is no regime to restore a society to the register, so the land is then legally owned by a society which no longer exists.

Legal support for social clubs

We can help social clubs in several ways:

• Updating rules

• Changing legal structure

• Training officers

• Advising on membership / officer disputes

• Advising on loan arrangements

• Assisting with filing annual returns

• Assisting with ongoing governance obligations, such as holding meetings and electing officers

• Advising on employment matters

• Advising clubs which have been deregistered by the FCA

Please contact Laura Moss to discuss your social club legal issues.

The road ahead for social clubs: challenges and opportunities

As social clubs continue to evolve and face new challenges, it’s clear that the sector requires more robust support and guidance to ensure long-term success.

We were delighted to take part in a recent round-table discussion with the FCA and other stakeholders to discuss the state of social clubs.  The FCA is interested to hear from any clubs with ideas about how to strengthen and support the sector.  Contact the Mutuals team.

We are also very pleased to be supporting a conference aimed at rebuilding the social club movement, organised by the Centre for Democratic Business, to be held on 11 September 2025 at the Mildmay Club in London.  Find out more and book tickets.

The journey ahead will require cooperation between clubs, industry bodies, legal experts, and regulators, but with the right support and direction, the social club sector can continue to thrive and grow in the coming years.

If you would like to discuss any aspect of this article further, please contact Laura Moss or a member of the charities and social economy team on 0113 244 6100.

You can also keep up to date by following Wrigleys Solicitors on LinkedIn.

The information in this article is necessarily of a general nature. The law stated is correct at the date (stated above) this article was first posted to our website. Specific advice should be sought for specific situations. If you have any queries or need any legal advice please feel free to contact Wrigleys Solicitors.