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
- Stephen Lloyd Awards – Open for entries
- Tax and VAT
- Sector general
- Equity, equality, diversity and inclusion
- Funders and funding
- Fundraising
- Volunteering
- Data and privacy
- Company law
- Commercial law
- Northern Ireland
- Health and social care
- Animal welfare
- Sport
- International development
- Education
Charity Commission
Newsletter about financial management
The Charity Commission has shared a newsletter on LinkedIn which collates various guides and updates about financial management for charities. This flags that a consultation will be launched soon to seek views on proposed changes to the Charities Statement of Recommended Practice.
Judicial review of inquiry report
As reported by Civil Society, last week a hearing took place for the judicial review of the Charity Commission’s inquiry report into Kids Company. The judgment is expected at a later date. The judicial review is being brought by Michael-Karim Kerman (former clinical director of Kids Company), after Camila Batmanghelidjh (the founder and former CEO) died after originally requesting it. The charity closed in 2015 and, in 2021, the High Court dismissed an application from the Official Receiver to disqualify the former CEO and former trustees (with positive comments about these individuals in the judgment). The Commission then published an inquiry report in 2022, which included various criticisms of Kids Company. That report is now the subject of this judicial review.
Civil Society has reported that Kerman has claimed the inquiry report is “legally flawed” and “outside the range of conclusions reasonably open to the regulator”, and that the Commission has claimed Kerman is seeking to “inappropriately immunise the collapsed charity and its trustees against the publication by the [commission] of any observations and wider lessons following its demise”. The Good Law Project has also shared an open letter in support of the judicial review, with 54 signatories including academics, psychotherapists, researchers, child protection experts, and celebrities.
Stephen Lloyd Awards – Open for entries
Fuelling innovative change, the Stephen Lloyd Awards are on the lookout for bold changemakers with creative solutions to everyday societal or environmental challenges. If you, or someone you know, has an early-stage project tackling a current issue in a new and impactful way, this is the perfect opportunity to bring it to life. Finalists receive £2,500 and winners are awarded £25,000 to accelerate their idea, alongside practical support. Open to charities, social enterprises, and social entrepreneurs, apply today or encourage someone in your network to take this opportunity. Entries close at midnight on 14 May. Please visit www.stephenlloydawards.org or get in touch with Mona Rahman at [email protected]. The Stephen Lloyd Awards are an initiative of the Bates Wells Foundation, charity reg. number 1150321.
Tax and VAT
Civil Society has reported that MPs have voted to reject amendments proposed in the House of Lords which would have made small charities exempt from the planned increase in employer National Insurance contributions. MPs gave the reason that “the Lords amendment interferes with the public revenue, and the Commons do not offer any further reason”. The article includes comments from Richard Sagar, Head of Policy at Charity Finance Group, that “Many small charities deliver essential support for people across the country, and many of them will now be faced with a difficult decision regarding cuts to these services, which will in turn impact greatly on those who need them.” Civil Society has also shared an article about how charities are struggling to quickly reforecast their financial budgets to prepare for the increases.
See ‘Education’ below.
Sector general
Civil Society has shared comments from a recent Pro Bono Economics event, at which Stuart Andrew (Shadow Secretary of State for Culture, Media and Sport) discussed the relationship between the Conservative Party and the charity sector, saying they are planning to hold roundtable discussions with charities to better understand issues in the sector.
Equity, equality, diversity and inclusion
The government has published a consultation on how to introduce mandatory ethnicity and disability pay gap reporting for employers with 250 or more employees. The consultation closes on 10 June 2025.
Acas has launched a campaign to improve understanding and support for neurodivergent workers. The campaign includes setting up an Expert Academic Panel on Neurodiversity and Employment, which will provide evidence-based recommendations that inform workplace practices and policy.
The House of Commons Transport Committee has published a report, Access Denied: rights versus reality in disabled people’s access to transport. According to the report, there is evidence of a substantial gap between the rights and obligations that exist in theory and the daily experience of disabled people, and the report urges the Department for Transport to set out a new inclusive transport strategy within 12 months.
The Foundation Practice Rating Report for 2024/25 from the Friends Provident Foundation has considered diversity, accountability, and transparency at UK-based charitable grant-making foundations, finding that diversity remains the weakest area.
Funders and funding
See the final paragraph above under ‘Equity, equality, diversity, and inclusion’.
Fundraising
The Fundraising Regulator (FR) has published its Annual Complaints Report. This found that the highest level of complaints were received around the theme of misleading fundraising and misleading information, there are still high levels of complaints about door-to-door fundraising, and there have been an increasing number of complaints about fundraising by community interest companies. Civil Society has reported on this, with comments from Jenny Williams (Chair of the FR’s Complaints and Investigations Committee) that “The report highlights the need for those engaged in charitable fundraising to monitor their fundraisers’ behaviour, particularly that subcontracted to agencies, and investigate any complaints made promptly”.
Paul Winyard, Head of Policy at the FR, has shared comments about the upcoming changes under the Data (Use and Access) Bill which will allow charities to use a ‘soft opt-in’ provision for electronic communications. Winyard encourages charities to use the soft opt-in responsibly. For more information, see our blog from Bates Wells Partner Hannah Lyons, which sets out top 5 tips for how charities can start using the new soft-opt in exemption in a compliant way.
The FR has also published its response to the consultation on the new Civil Society Covenant Framework. This mentions that it has been working with the Chartered Institute of Fundraising to involve fundraisers when reviewing guidance and discussing sector-wide issues (such as using AI), to make sure policy reflects real-world experiences.
Volunteering
London’s Lifelines has shared a London Vision for Volunteering (led by Dominic Pinkney from Works4U), which sets out 36 recommendations to develop volunteering in London.
Data and privacy
The Information Commissioner’s Office has announced a series of new measures that “support the Government’s growth agenda”. The commitments include publishing a free data essentials training programme for small businesses and introducing a statutory code of practice for private and public sector businesses developing or deploying AI (with simpler guidance for businesses developing or deploying AI).
Company law
HM Treasury has published an action plan outlining the government’s new approach to regulation and regulatory bodies. The plan aims to cut red tape and the administrative cost of regulation on business, thereby kick-starting economic growth. The first action focuses on reducing the complexity and burden of regulations. The Treasury intends to remove or consolidate regulators, where it makes sense to do so. It plans to merge the Regulator of Community Interest Companies into Companies House to prevent duplicative disclosure requirements for community interest companies. This measure requires legislative change and will be implemented when parliamentary time allows.
Commercial law
The Competition and Markets Authority has published the final version of its guidance on how it will exercise its direct consumer protection enforcement powers under the Digital Markets, Competition and Consumers Act 2024 (DMCCA 2024).
Bates Wells Partner and Head of Corporate and Commercial Richard Marke, Solicitor Ruth Clifford, and Trainee Solicitor Leonie Brabant have published an update about how to prepare for changes to consumer law regarding drip pricing under the DMCCA 2024.
Northern Ireland
The Charity Commission for Northern Ireland has shared its report on why charities in Northern Ireland closed between 13 December 2013 and 1 July 2024. Common reasons for closure included a lack of members of supporters and merging with another charity.
Health and social care
As you’ll have seen in the press, the government has opened a consultation and published an accompanying Green Paper, Pathways to Work: Reforming Benefits and Support to Get Britain Working. The consultation is seeking views about approaches for the government to consider around reforming the health and disability benefits system and employment support. It will close on 30 June 2025.
NHS England has published its 4th Health and Climate Adaptation report, which aims to “help local, regional, and national teams prepare for and respond to climate change while delivering on statutory net zero commitments”. The report flags that climate change threatens population health and the ability of the NHS to deliver essential services in the near and longer term.
The NHS Race & Health Observatory has shared a report, the Cost of Racism, which considers an “economic approach to assess the costs of racial discrimination to the NHS, individuals and to the economy”. It considers institutional discrimination and racial health inequities in England, including late diagnoses and worse maternal and mental health outcomes.
The NHS Confederation has summarised key points to note about the government’s decision to abolish NHS England and take it back into direct government control.
Animal welfare
On 21 March 2025, the Competition and Markets Authority (CMA) published a speech by Martin Coleman, Inquiry Chair of the CMA’s market investigation into the supply of supply of veterinary services for household pets in the UK. After noting that the aim of the market inquiry is to examine whether pet owners have access to fairly priced services and sufficient choices, Coleman highlighted three areas the CMA is considering: transparency of pricing and ownership, medicine prices and choices for sourcing, and reform of the veterinary regulation system. The CMA intends to publish a provisional decision report later this year.
Sport
The Department for Culture , Media and Sport has announced £100 million in funding to revamp local sports facilities across the UK. The funding will be targeted at deprived areas and support greater access and participation levels among “under-represented people including women and girls, ethnic minority groups and disabled players”. Of the funded projects, at least 40% will have a multi-sport offer so that more people can participate in sports other than football. Applications for funding are open now. The first tranche of beneficiaries are expected to be confirmed in summer 2025.
International development
Bond has published a statement following reports that 8 humanitarian workers have been killed in Gaza, including: “These workers risk their lives every day to reach people in dire need of support, they must be able to do this safely, in line with international humanitarian law”.
Bond has shared a summary of how Ireland, Germany, and South Africa engage with and regulate civil society, noting a few lessons which could contribute to a more enabling environment in UK civil society.
Education
General
The Department for Education (DfE) has published an independent Curriculum and Assessment Review interim report, commissioned by the government and conducted by Professor Becky Francis CBE and a panel of experts. The report sets out key issues and identifies four main areas of focus for the review until its final report, which is due to be published in the autumn. For more details, see this press release and this outline of the proposed areas of reform from Schools Week.
Ofsted has published the second monitoring report on 132 commitments that were made in its responses to the Big Listen consultation and to Dame Christine Gilbert’s independent learning review into Ofsted’s response to the death of headteacher Ruth Perry. The report lists 54 completed actions as of March 2025 and explains the progress towards the actions not yet completed.
The DfE has announced a new package to “support young people to access high-quality arts education, wider creative and sporting activities as well as opportunities to gain in-demand skills in AI and tech”. The package is set to include the development of a National Centre for Arts and Music Education, the creation of an “Enrichment Framework”, and the introduction of a new “Digital, AI and Technology Task and Finish Group”.
Schools
The DfE has opened a consultation on narrowing the digital divide in schools and colleges, and is seeking views on making six core digital and technology standards a requirement for all schools and colleges by 2030. £45 million has been announced alongside the consultation to “boost school infrastructure, including £25 million to upgrade wireless networks this year – helping get classrooms online and boosting standards where it is most needed”. The consultation will close on 23 May.
During a debate on the Non-Domestic Rating (Multipliers and Private Schools) Bill, the House of Lords has voted against ending charitable rate relief for private schools, with a majority of 91 backing an amendment that (if approved) would cut this clause from the Bill. Baroness Barran, Shadow Education Minister, expressed concerns about the risk of potentially creating a two-tier system for charities. A third reading of the Bill is scheduled for 24 March in the House of Lords, before it returns to the House of Commons to consider all proposed amendments.
Further Education
The DfE has issued new guidance on adult education and skills funding for 2025 to 2026, announcing it will apply a “6% reduction in funding for adult education across all organisations and providers to ensure that the allocations are affordable within the overall budget”. See commentary from FE week.
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.