There are strict rules for charities that receive public money and which work alongside the Government and other public sector service providers. These rules include provisions such as making sure charities only carry out activities that fall within their stated purposes, and that they can afford to deliver the service. Above all else, it is important, and indeed required, that these charities remain independent of the Government – a principle that I strongly support as it avoids conflicts of interest.
I am aware that the amount charity executives are paid is often a controversial issue. While I share concerns over excessive pay, setting senior executive salaries is a matter for each individual charity’s trustees. I do think, however, that it is important that charities are transparent about their remuneration, and it is right, therefore, that charities are required to disclose employees in each £10,000 income band over £60,000.
The Government has recently introduced the Charities Bill to Parliament which will equip the Charity Commission with new and strengthened powers to tackle abuse of charity more effectively. It will also provide stronger protection for charities from individuals who are unfit to be charity trustees.
Specifically on Kids Company, successive governments have supported this charity over more than ten years but unfortunately the organisation could not find a sustainable financial position. The Government did try to give the charity one last chance and the wellbeing of all the young people who used the charity remains the top priority. All of the cases have been handed to local authorities and the Government continues to work with them to get the best outcome for the young person.
By Patrick McLoughlin on October 15, 2015