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Charities Bill receives Royal Assent

The Charities Bill today received Royal Assent – marking the most significant change to charity law in over 400 years.

The Charities Act 2006 aims to support a dynamic and vibrant sector, ensuring that it continues to enjoy high levels of public confidence.

The Charities Act will reform charity law and regulation to:

• Enable charities to administer themselves more efficiently and be more effective;
• Improve the regulation of charity fundraising, and reduce regulation on the sector — especially for smaller charities;
• Provide a clear definition of charity with an emphasis on public benefit;
• Modernise the Charity Commissions functions and powers as regulator, increase its accountability, and preserve its independence from Ministers.

Hilary Armstrong, Chancellor of the Duchy of Lancaster, said:

“This is an important day for charities. The Charities Act makes much needed changes to charity law and regulation – helping them to thrive, grow and continue to benefit society.

“The measures contained in the Act will ensure the charity sector continues to be recognised and admired for its expertise, diversity and social impact.”

Ed Miliband, Minister for the Third Sector, said:

“Charities play a vital role in society. Their work benefits millions of people, often helping those in our communities that are most in need.

“The Charities Act will help charities by providing them with a modern legal and regulatory framework. This will make it easier for charities to continue their essential work, whilst protecting the high levels of confidence that the public has in them.”

Notes to editors

1. For further information on this story please contact Campbell McDonald at the Cabinet Office Press Office on 020 7276 0311.
2. The full text of the Charities Bill and Explanatory notes will be published imminently on www.opsi.gov.uk/acts.htm [External website].
3. Provisions in the Act will begin to come into force in early 2007. The Cabinet Office’s Office of the Third Sector are working closely with the Charity Commission on informing the sector of exactly what the Act will mean for them, including producing a plain English version in early 2007.
4. Background on timing of the Charities Bill:
   • Sep 2002: PM Strategy Unit review published (“Private Action, Public Benefit”) with 61 recommendations.
   • Jul 2003: Government White Paper published (“Charities and Not-for-Profits: a Modern Legal Framework”).
   • May 2004: Draft Bill published.
   • May – Sep 2004: Pre–legislative scrutiny by a Joint Committee.
   • Dec 2004: Government response to Joint Committee published and Bill introduced to House of Lords.
   • April 2005: Bill fell when general election called.
   • May 2005: Bill reintroduced.
   • June – Nov 2005: Completes passage through the House of Lords.
   • June 2006: Second reading in the House of Commons
   • July 2006: Committee stage in the House of Commons
   • October 2006: Report and Third Reading in the House of Commons.
   • November 2006: Charities Bill receives Royal Assent and becomes Charities Act.
5. In recognition of the increasingly important role the third sector plays in both society and the economy, the Prime Minister announced a new Office of the Third Sector in May 2006. Ed Miliband was appointed as the new Minister for the Third Sector, working in the Cabinet Office to Hilary Armstrong, Chancellor of the Duchy of Lancaster. For more information, please go to http://www.cabinetoffice.gov.uk/thirdsector/.

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