Charities: Government Grants

Lord Bishop of Oxford Excerpts

Wednesday 10th February 2016 Lords Chamber

Asked by

[Lord Harries of Pentregarth]

To ask Her Majesty’s Government how they plan to implement their new policy restricting how government grants to charities may be used.

[Lord Harries of Pentregarth (CB)]

I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare a non-financial interest as chair of the Commission on Civil Society and Democratic Engagement.

[The Parliamentary Secretary, Cabinet Office (Lord Bridges of Headley) (Con)]

My Lords, less than 7% of the £130 billion of grants paid each year goes to the non-profit sector. From 1 May, departments will be required to insert the clause in all new and renewed grant agreements unless Ministers decide, in exceptional circumstances, to qualify or remove the wording. Before 1 May, departments are encouraged to engage with any grant recipients who are likely to be affected by the clause. It will be for departments to employ existing financial controls and take appropriate action if they believe a clause to have been breached.

[Lord Harries of Pentregarth]

I thank the Minister of his Answer, but would he not agree that charities that are so often at the front line of meeting human need are in the best position to gauge the effect of government policies on those whom they are trying to help? Therefore, they have a duty to bring any concerns to bear to the Government. In the light of that, does the Minister agree with the compact signed by the Prime Minister in 2010 with civil society that the Government will,

“respect and uphold the independence of civil society organisations to deliver their mission, including their right to campaign, regardless of any relationship, financial or otherwise, which may exist”?

[Lord Bridges of Headley]

First, I pay tribute to the work that the noble and right reverend Lord does in this area and all his contributions to this debate. I understand that there has been concern about this clause. I assure him, the House and charities that, of course, charities will be able to provide advice and guidance to government if it is part of the work that they are being paid to do. This clause aims to prevent taxpayers’ money being used to lobby politicians and government on all manner of other issues. The Government believe that the new clause is compatible with the compact and does not in any way prevent grant recipients from campaigning and lobbying, using their other funds. It simply requires clarity on what the grant funding can be used for.