Two pieces of legislation designed to reduce bureaucracy for charities and unlock almost £900m of dormant assets funding have cleared parliament and are set to become law.
The Charity Commission said the Charities Bill, which is designed to bring into force long-awaited reforms designed to reduce the amount of bureaucracy faced by charities, had been given royal assent today.
The Department for Digital, Culture, Media & Sport said the Dormant Assets Bill, which is expected to release an additional £880m of dormant assets for use by good causes, was also set to be given royal approval today.
Nigel Huddleston, the charities minister, said at the bill’s third and final reading in the House of Commons this week that the bill would “simplify a number of processes and promote consistency in the law” by implementing the majority of the recommendations set out in the Law Commission’s Technical Issues in Charity Law report.
He said the bill would make it easier for charities to amend their governing documents and make it more straightforward for charities to repurpose funds from a failed fundraising appeal.
It will also provide trustees with tools to make better use of their permanent endowment and remove administrative burdens associated with land transactions and mergers, said Huddleston.
He told the Commons that the measures in the bill would be introduced on a staggered basis over the next 12 to 18 months so charities are “not overburdened by several changes at once”.
The government would also publish a more detailed implementation plan after royal assent, he said.
Helen Stephenson, chief executive of the Charity Commission, said in a statement about the Charities Bill today: “This legislation is about empowering trustees, reducing unnecessary red tape, allowing charities to focus on the important things: delivering on their purpose for the public benefit.
“The hard work of implementation now begins for the commission, and I look forward to working with DCMS in the months ahead.”
The Dormant Assets Scheme has unlocked more than £800m from unused bank and building society accounts over the past decade, with £425m of that enabling the creation of the social investment wholesaler Big Society Capital.
The latest legislation will allow dormant assets from the insurance, pensions, investment and wealth management and securities sectors to be included in the scheme.
The DCMS said youth activities, community projects and other good causes could benefit from the additional funds, with a consultation set to be launched on how the funds for England should be used.
It said options would include supporting young people, helping people who are struggling to manage money, growing the social investment market and addressing long-term funding to improve social infrastructure through community wealth funds.
Huddleston said in a statement: “The expansion of this fantastic scheme will help change people’s lives for the better.
“We are doubling the financial support it can provide to support our recovery from the pandemic and level up communities.
“I encourage eligible organisations to participate in this unique opportunity, which is also inspiring other countries, to contribute to positive societal change.”