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Consultation on the Consolidation of Charity Law

11 September 2009

The draft Consolidation Bill brings together provisions of the main legislation on charities in England and Wales into a single piece of draft legislation. It would not introduce new policy. The aim of the draft Bill is to make the legislation simpler, better structured, and more accessible to the lay person.

The development of the draft Charities Consolidation Bill arises from a commitment given during the passage of the Charities Act 2006, that the Office of the Third Sector would seek consolidation of charity law subject to support from the Law Commission.

Angela Smith, Minister for the Third Sector, said:

“Through the implementation of the Charities Act 2006, the Government has freed charities from unnecessary red tape and introduced fair rules that treat all charities equally. The views of all those who work with charity law will help ensure that we develop the clearest and most user-friendly Bill as possible.”

With a view to making the existing legislation more user friendly, the draft Bill restructures and modernises the existing text. For example, provisions relating to the preparation of group accounts by charities are dealt with in the Part of the draft Bill which deals with charity accounts rather than being located in a separate Schedule. In addition, longer sections of the existing legislation have been split and subsections split into smaller chunks.

The Charities Act 2006 enables the Minister for the Cabinet Office to make pre-consolidation amendments to existing enactments. It is anticipated that this power would be exercised to facilitate the consolidation process. A draft pre-consolidation amendments order has been prepared containing the amendments which, at this stage, are anticipated to be made. 

In general terms, the amendments made by the order would correct minor mistakes in the existing legislation, remove unnecessary inconsistencies and repeal provisions which are now considered obsolete. The amendments are not intended to involve significant changes in policy.

Views are invited on the revisions that have been made to the structure of the existing legislation and to modernise the drafting of that legislation, as well as on the draft Bill and draft order more generally. Views are also sought on four specific questions in the consultation document.

Copies of the consultation documents can be downloaded from the links below:

The closing date for the consultation is Friday 4 December 2009. One hard copy of each document can be requested per person by contacting Khaled Moyeed at the Office of the Third Sector on 020 7276 6028 or by emailing charities.consolidation@cabinet-office.x.gsi.gov.uk.