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Charities Bill [Lords]

I welcome what my right hon. Friend the Minister for the Cabinet Office has said to reinforce the commitment to early parliamentary scrutiny. That is one of the undertakings that have been given by Ministers that has helped to create the spirit of consensus and movement arising from the legislation. I wish also to congratulate the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Doncaster, North (Edward Miliband) on the exemplary way in which he has taken the Bill through the House. It is quite a challenge to take on a Bill such as this in the first stages of one’s ministerial career, and he has done an outstanding job. The Bill will help to clarify the meaning of charitable purpose, as defined in clause 2. That definition is now clear and includes issues such as animal welfare, which many of us have wished to see expressly set out in legislation. Probably the most important aspect is the creation of a level playing field in the application of the public benefit test. That is an excellent development. The Bill takes the values of charity, which have been tried and tested over generations, and reinterprets them for a modern age. Fortunately, they have not been interpreted too narrowly, which was a danger had we over-amended the Bill, but in a way that will give the Charity Commission authority in taking its work forward. It is important that the commission ensures that fee-charging charities take active steps to mitigate the impact of fees and maximise the public benefit, as transparently as possible. The outcome of those steps must be to ensure that someone who is able to benefit from a charity’s services and who is eligible to do so has a reasonable chance of doing so. I referred earlier to a conversation with the chief charity commissioner and she has confirmed that the words I am using correctly interpret her position, and I hope that that will be of some comfort to the hon. Member for Isle of Wight (Mr. Turner). On method and timing, the chief commissioner confirmed that while the responsibility to meet the legal requirements and satisfy the commission lies with the trustees of each charity, she will encourage sectors to work with the commission to develop good practice guidelines and to work progressively towards clear standards and the ability to demonstrate how they are doing so. In other words, it is an engaged process—a relationship with charities of a very positive sort. That is consistent with the concept of continual improvement that is now generally accepted in the sector as being right in principle and necessary to the achievement of proper accountability. I believe that it is a sensible and progressive development of the standards for which our charitable sector is renowned. There is a clear expectation of timely action, but with no harsh grinding of gears. That is why the hon. Member for Isle of Wight was wrong to imply that there was a degree of uncertainty, both in the Bill and about what the Charity Commission will do in interpreting it. The Charity Commission will not have to respond to Ministers or to their policy statements, and that is why I have been at pains to quote at some length what the chief charity commissioner has said about her understanding of what Parliament is doing to provide clear law. I believe that the Charity Commission has raised its game over the past few years. I now feel very confident that it will discharge robustly the responsibilities that Parliament is giving it, but with common sense and professionalism. Therefore, the doubts expressed by the hon. Member for Isle of Wight are ill founded, and I hope that he will accept what the chief charity commissioner has said about her interpretation of the commission’s remit from Parliament. That is a matter of emphasis, but an important one. In the forthcoming spending review, I am sure that my hon. Friend the Minister and my right hon. Friend the Minister for the Cabinet Office will want to encourage the process of continual improvement in the sector, and to ensure that the Charity Commission is well equipped to drive that process forward. In the meantime, I am certain that the Bill serves charities well, without being too prescriptive about the definition of public benefit. The principle is clear and has stood the test of time, but we need to reinterpret it for the modern age. That will be necessary again in the future, as eternal ideals must continually be interpreted anew as they are applied to contemporary conditions and challenges. When my right hon. Friend the Prime Minister was Leader of the Opposition, he asked me to do some work on improving the relationship between Government and the charitable and voluntary sector. I have been increasingly aware ever since that, although legislation and clarity about principles are important, it is people who drive charitable endeavour, and that legislation needs to nurture enterprise and vigour in that sector. This Bill, in the form that it has acquired as a result of the parliamentary scrutiny process, is eminently fit for that job. I commend the efforts of those Ministers who have produced it.