Our weekly round-up of news and updates from across the sector.
To help you navigate this week’s content, the links below will take you straight to content by topic.
- Charity Commission
- Charity law cases
- Sector general
- Fundraising
- Data and privacy
- Public procurement and subsidy control
- Company law
- Awarding organisations and competition law
- Health and social care
- Social enterprise
- Social investment / social impact investment
- International development
- Education
Charity Commission
Risk Assessment
The Charity Commission has published its Charity Sector Risk Assessment for 2026 which provides an overview of potential risks facing the sector (press release). The report identifies three key risks facing the sector: 1) financial resilience, 2) risks to public benefit arising from the abuse of charitable status for private benefit, and 3) risks to public benefit resulting from regulatory gaps. It also highlights the following ongoing threats and risks: governance risks, safeguarding risks, social tensions, charities operating overseas, geopolitical turbulence, hostile foreign states, and emerging technology and cyber risks. Compared with the 2025 assessment, the 2026 report divides risks to public benefit into two separate key risk categories, introducing a distinct focus on structural vulnerabilities arising from regulatory gaps. It no longer lists fraud and other financial crime risks as a standalone ongoing risk, instead discussing fraud within its analysis of public benefit risks and structural vulnerabilities. The report also expands its discussion of extremism and hate speech risks and provides a brief overview of the government’s proposed measures to strengthen the Commission’s powers.
Annual Public Meeting
The Charity Commission will hold its Annual Public Meeting on Thursday 15 October 2026 and has shared information about how to join the meeting. If you are interested in attending in-person, you need to register your interest by 6pm on Wednesday 26 August.
Charity law cases
The Chancery Division of the High Court dismissed two claimants’ application for permission to bring charity proceedings under section 115(5) of the Charities Act 2011 to challenge their expulsion from membership of the Tees Valley Islamic and Cultural Association (“TVICA”), concluding this was “the least worst course for the charity”. In making its judgement, the court held that whilst the claimants had a legally sustainable claim regarding procedural irregularities and alleged breaches of fiduciary duty, litigation was not in the charity’s best interests. The court considered that the charity has limited financial resources which would be severely depleted by litigation costs, estimated at £50,000-£100,000 per side. The court also found no widespread dissatisfaction within the charity regarding the expulsions, noting subsequent elections had changed the executive committee composition, and an informal survey showed support for maintaining the expulsions. The application had been filed beyond the prescribed time limit and the court also indicated that, had permission otherwise been appropriate, it would have refused an extension of time.
Sector general
The Home Office has published new cross-government guidance for local authorities and councils in England on supporting individuals subject to a No Recourse to Public Funds (NRPF) condition. The guidance consolidates information on immigration status, access to public funds, local authority duties and discretionary powers, and support available to individuals and families with NRPF.
Fundraising
A blog from the Gambling Commission’s Research and Impact Manager Rupam Jagota considers new research about how consumers engage with illegal individual-led lotteries and raffles on social media. The research indicates a need for clearer guidance for individuals and small businesses about what is allowed, as well as proactive monitoring and interventions on the platforms. Jess Beale comments that “this is a helpful reminder that the rules for lotteries extend to lotteries being run on social media and that careful attention should be given to lotteries being run on social media, either directly by the charity, or by “in aid” of volunteers, to ensure they comply with the legal requirements for lotteries.”
Data and privacy
New research from the Information Commissioner’s Office (ICO) highlights a “significant gap between how much control parents believe they have over their children’s online experiences and the reality of their children’s digital lives”, finding that over 1/3 of children talk or play online with people they have never met.
As part of the Better Records Together campaign, the ICO has shared a new video to help people with care experience understand their rights around accessing personal care records.
Public procurement and subsidy control
Review of subsidy control regime
In June 2026, the Competition and Markets Authority’s (CMA) laid its first review of the UK’s subsidy control regime before Parliament, covering over three years from its entry into force in 2023. The CMA identified that the regime was subject to implementation challenges, particularly regarding competition assessments, and reported a relatively widespread view amongst commentators that the regime’s enforcement was not sufficiently robust.
The Government has now responded, largely accepting the CMA’s recommendations. Lindsay Draffan explains “The recommendations include the Government providing further guidance and practical support such as additional training sessions (e.g. how to conduct competition assessments), an RDI streamlined route, and improved awareness and understanding of subsidies given. As a result, public authorities should expect improved statutory guidance and expanded on-demand resources over the next 6 to 12 months. It is worth noting as well that the Government considers that private enforcement is still the most appropriate enforcement mechanism despite external criticism.”
Company law
The sign-in screen for the Companies House Find and update company information service will change in late August so that One Login will become the main sign-in option. This is part of the move to the One Login system. If you already have an account, you can keep signing in with your existing details for now. This option will be further down the sign-in page.
Awarding organisations and competition law
Lindsay Draffan, Leela Fair, Laura Hobbs, and Jean Tsang have shared guidance for awarding organisations on managing risks in relation to competition law. This is important because competition law applies to all organisations offering services and goods on economic markets, whether profit-making or not. This includes companies, associations, and charitable bodies.
Health and social care
See above under Data and privacy.
The Department for Education has published new guidance for local authorities relating to care leavers and local offer requirements and duties. This follows the Children’s Wellbeing and Schools Act 2026 coming into force. The guidance explains how local authorities are expected to meet their duties to consult on, publish and maintain a local offer for care leavers and how the guidance should be read alongside existing duties under the Children Act 1989 and the Children and Social Work Act 2017. The current 2018 guidance remains effective until the new statutory guidance takes effect on 30 September 2026.
Ofsted has updated its Social Care Enforcement Policy following legislative changes that came into force in August 2026. The changes give Ofsted the power to issue fines to operators of unregistered social care provision and permit Ofsted to serve notices on social care providers and managers by email.
Social enterprise
In a blog for Social Enterprise UK, Andy Daly, Head of Procurement Programmes, considers how businesses can take practical action to reduce supply chain emissions, rather than treating measurement as an end in itself. The blog highlights the role of procurement and supplier choice in supporting climate objectives.
Social investment / social impact investment
Social and Sustainable Capital LLP (SASC) has announced that it has entered into a new investment partnership with Thriving Investments, alongside Places Foundation, further investment from Better Society Capital and a personal investment from SASC Chair Scott Greenhalgh. The partnership aims to increase SASC’s capacity to support charities and social enterprises, focusing on expanding investment in supported accommodation and housing solutions for people at risk of, or experiencing, homelessness.
International development
Bond’s Chief Executive, Romilly Greenhill, has shared a statement for World Humanitarian Day. She explains that over 1,000 humanitarian workers have been killed in the last three years and comments that “Protecting humanitarians and funding their vital work are two sides of the same commitment, and on this World Humanitarian Day we urge the government to honour both”.
Education
General
Ofsted and the Department of Education (DfE) have published the terms of reference for a new study examining strategies to prevent young people aged 16-18 from becoming NEET (not in education, employment or training). The research will explore barriers to engagement, effective transition support, partnership working between local organisations, and how current inspection evidence reflects work with young people at risk of disengagement.
Schools
Schools Week reports that the DfE and IFF Research have commissioned a £2 million study into the impact of delaying smartphone use among primary school pupils. The research will examine the effects on children’s wellbeing, development and health, and could inform future government policy in this area.
The DfE has published the 2026 version of Keeping children safe in education for schools and colleges in England. The updated guidance was added to GOV.UK in July 2026 and comes into force on 1 September 2026. It includes changes on regulated activity following the Crime and Policing Act 2026, including removal of the “supervision exemption”, as well as new statutory guidance on children questioning their gender.
The High Court has considered the reasons required when refusing to reinstate a permanently excluded pupil with SEND. In R (HVF) v Lift Schools [2026] EWHC 2088 (Admin), the court quashed the permanent exclusion of a pupil with complex SEND, finding that the governors’ disciplinary panel had not made its own careful assessment of whether the statutory threshold for permanent exclusion was met or given adequate reasons for refusing reinstatement. The judgment states that permanent exclusion is protective, not punitive, and that decision-makers should show their proportionality assessment, particularly where SEND is involved.
Further Education
The DfE has published its 2026/27 in-year growth funding guidance, setting out how additional funding will be allocated to institutions that experience growth in 16 to 19 learner numbers during the academic year.
The DfE has updated its College Corporation Financial Management Good Practice Guides, publishing new guidance on streamlined energy and carbon reporting for colleges and the scope of work of audit committees and internal auditors in college corporations.
Higher Education
Mark Abbott has written an article on the Office for Students’ (OfS) revised freedom of speech guidance, which was published on 5 August 2026, following Sussex v OfS. He comments that the revised guidance now more clearly recognises the need for higher education providers to balance freedom of speech duties with charity law, equality law, safeguarding responsibilities and other legal obligations. However, he also notes that the guidance would benefit from fuller consideration of how it interacts with relevant Charity Commission guidance, and that the practical comfort providers can take from the framework is likely to depend on the OfS’s approach to enforcement.
The OfS has announced that the British Academy of Jewellery has closed its higher education courses with immediate effect. Up to 220 students across its London, Birmingham, Leicester and Sheffield campuses are affected. The provider’s validating partners, Kingston University and Pearson, have committed to supporting affected students to continue their studies with alternative providers.
Disclaimer – The information contained in this update is not intended to be a comprehensive update – it is our selection of the website announcements made in the week up to last Friday which we think will be of interest to charities and social enterprises. The views expressed in items we’ve included are the views of the named authors/sources, and should not be taken to be the views of Bates Wells, its partners or employees. The content in this update is necessarily of a general nature – specific advice should always be sought for specific situations.