Small Charitable Donations and Childcare Payments Bill

David Warburton Excerpts

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons
Tuesday 11th October 2016 Commons Chamber

[David Warburton (Somerton and Frome) (Con)]

It is a pleasure to support a Bill that, although pretty straightforward and simple in outlook, as we have heard, is likely to have a significant impact on the small groups and charities that need it most.

In my constituency in Somerset, the uniquely spectacular levels of community spirit and the astonishing energy with which people are keen to help those around them mean that there is a huge number of such smaller charities, all inevitably fighting for survival. For them, not only every penny, but every second counts. Their time is also very precious. They do not have the capability or reach to spend hours sifting through accounts to satisfy various complex financial rules and regulations; they just want to get on with the job.

The simplification and easing of access to the benefits of the gift aid small donation scheme, as well as the more sensitive approach of the tax-free childcare scheme, are really to be welcomed—it sounds as though they are —on both sides of the House. I am pleased that the extensive consultation that, as I understand it, went into putting the Bill together has resulted in a broadly positive reaction to the proposed changes from charities.

Of course, any step in any direction is only one step, and there may well be subsequent steps to take—there may well be more to add to the process—but we are taking a firm leap in the right direction for innumerable small organisations, and certainly for those fabulous and uniquely special organisations in my constituency.

The scrapping of the two-year rule and of the two-in-four requirement will make the environment far simpler and fairer for those charities—and not just for them, but of course for their workers and volunteers. It is worth mentioning that charitable giving, especially at this level, is often a very spontaneous gesture, and such spontaneity ought to be reflected in the gift aid scheme. That is exactly what the Bill sets out to achieve.

HMRC’s financial assessment of the reform suggests that 71,000 charities will benefit, which is a huge number, and that its receipts will decrease by some £15 million a year. We all of course feel great sadness for HMRC’s loss, but it is very nice when a decrease in revenues is used as a measure of success. That is not perhaps a principle to be applied more widely.

We have a Bill that makes the original intentions of the gift aid small donation scheme—its first aspirations—far closer to being realised. It is the Government’s duty to narrow the gap between what I have described as the astonishing and spectacular altruism up and down the country, but most particularly in Somerset, and the way in which that impulse is realised and felt by the charities and organisations in most need. The Bill will certainly go some way towards achieving that, and I therefore warmly welcome it.