Charities (Protection and Social Investment) Bill [ Lords ] (Fifth sitting)

Debate between Alan Mak and Rob Wilson

Thursday 7th January 2016 Public Bill Committees

[Mr Wilson]

Look, there are at least three separate investigations into what happened at Kids Company, two of which are due to report by the end of this month, I think. It is important that we all wait to see what those reports say. If lessons can be learned, the Government will certainly learn them and do what we can to ensure that such things do not happen again, but to pre-empt that in this Committee would be wrong.

I was talking about the change in the nature of fundraising regulation if we had to invoke this power. It would no longer be governed by a self-regulatory system; instead, the Government would be able to invoke statutory regulation by mandating the Charity Commission with that task. Were that function to be passed to the commission, clearly it would require additional funding or would charge fees under section 19 of the Charities Act 2011.

I hope that I will never feel compelled to use this power, as it would mean that the self-regulatory system had failed. More importantly, it would mean that large charities had failed to put their house in order. However, the seriousness of the abuse in the past year or so and the impact it has had on public trust in charities has made it clear that a robust backstop is needed to ensure that the public feel that they can give with confidence and to prevent the same sorts of scandals being repeated.

[Mr Alan Mak (Havant) (Con)]

One area of charitable practice that helped to undermine confidence in the sector is the behaviour of so-called chuggers—charity collectors who collect direct debits on behalf of charities. Can the Minister assure the Committee that the new regulatory system will clamp down on such bad practices and increase confidence in the sector by way of regulation?

[Mr Wilson]

I thank my hon. Friend for raising an issue of great public interest. Many people have raised such concerns in recent years. Personally, I am not convinced that that method of fundraising is beneficial to the sector’s reputation. Many people dislike being approached in the street or on their doorstep. On the other hand, I appreciate that it represents an important source of income for the sector, and it would be churlish not to acknowledge that there have been some improvement in the regulation of face-to-face fundraising—it is known as that, rather than chugging—in recent years. It was highlighted as a problem as far back as 2012 by Lord Hodgson’s report. However, I expect that the new fundraising regulator will pay very close attention to chugging. Charities and the new regulator need to ensure that it is done respectfully and responsibly, and that the methods used to solicit donations are not the next big scandal waiting to happen.

Let me return to section 64C, if that is not too geeky for the Committee, which sends a clear signal about the Government’s intention for better regulation of fundraising in the future in one way or another. The charity sector feels compelled to ensure that that is achieved through the Etherington system, rather than statutory regulation. I think that everybody here wants fundraising to be better regulated in future to ensure that it protects the vulnerable, is not governed by vested interests and does not allow free riders to abuse the system. The new clause provides a robust back-up to the system of self-regulation currently being implemented. It will also act as a deterrent to those who are still in denial about the seriousness of the issues that the sector faces.

In some ways, it is odd that I hope that I and my successors will never have to invoke the reserve powers to regulate fundraising. Ultimately, whether or not that happens is in the hands of the charities themselves, which need to ensure that the self-regulation of fundraising works in the public interest. I hope hon. Members will agree with me and back this important new clause, which will help safeguard the future of fundraising and the reputation of charities in the long term.

Oral Answers to Questions

Debate between Alan Mak and Rob Wilson

Wednesday 1st July 2015 Commons Chamber

[Alan Mak (Havant) (Con)]

5. What progress he is making on increasing the number of places on the National Citizen Service.

[The Minister for Civil Society (Mr Rob Wilson)]

With your indulgence, Mr Speaker, may I first congratulate the hon. Member for Wigan (Lisa Nandy) on the birth of her son in May? I am sure that it is the reason for her absence today, as she normally shadows me.

More than 135,000 young people have benefited from the National Citizen Service in recent years. In 2015, more young people than ever will have the opportunity to take part. I have written to all Northern Irish and English MPs encouraging them to visit an NCS programme near them this summer.

--- Later in debate ---

[Mr Wilson]

I join my hon. Friend in thanking Grimsby Town for the part it played in supporting nearly 200 young people taking part in the NCS in his constituency and the surrounding area in 2014. In particular, I pay tribute to Graham Rodger and Lee Stephens for leading an excellent team. I understand from my hon. Friend that it contains a former Grimsby Town goalkeeper, so it could be said that the NCS is in safe hands.

[Alan Mak]

In my area, 831 young people participated in the NCS last year. Does the Minister agree that the NCS reflects this Government’s one-nation values by bringing together young people from all backgrounds so that they develop greater self-awareness and responsibility?

[Mr Wilson]

I absolutely agree with my hon. Friend on that. That view is supported by consecutive independent evaluations, which have demonstrated the effectiveness of the programme for people from a range of backgrounds. For instance, in 2013, 16% of NCS participants were in receipt of free school meals, which compares with a figure of about 8% of 16 to 17-year-olds in the general population. Despite this great success, I still want to go further in reaching out to more young people who face big challenges in life.