Public and Commercial Services Union
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Big Society could mean big fraud if charity regulator is cut
At the same time as encouraging more of the third sector to take control of services, the government is planning to cut the Charity Commission’s budget by a third - a move that will leave the commission unable to fulfil is important functions, the union says.
In September, the commission’s outgoing chief executive Andrew Hind said in a newspaper interview: “A lot of the things we have been trying to do would be at risk in a world where we had 25 to 30% less funding.”
PCS members from the Charity Commission told MPs at a meeting in parliament today (23 November) that in 2008 there was an estimated £32 million of fraud in the charitable sector, and that commission staff have long felt they had insufficient resources to tackle the problem effectively.
Charities face a double whammy of public donations falling because people have less money and a reduction in funding because of government cuts
Charities face a double whammy of public donations falling because people have less money and a reduction in funding because of government cuts. At the same time, demand for their services - such as advice about housing, relationships and debt - are on the increase.
Poorer regulation of the sector risks damaging the reputation of charities and could lead to fewer individuals and organisations being willing to donate and support them.
PCS general secretary Mark Serwotka said: “Public confidence in charities remains high, but we believe this is under threat from an increase in fraudulent fundraisers and collectors as a result of the government’s cuts.
“The Tories have had a hard enough job explaining what the Big Society means, and understandably so. As well as meaning a big cut in the welfare state, they will find themselves having to explain to the public why it has led to a big con for charities.”
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