A damning parliamentary report has demanded an urgent and radical overhaul of England and Wales's charity regulator, accusing it of a 'catastrophic failure' in its fundamental duty to hold charities to account.
The powerful cross-party Public Administration and Constitutional Affairs Committee (PACAC) has issued a blistering assessment of the Charity Commission, stating that its 'light-touch' regulation has severely damaged public confidence in the charitable sector.
A Litany of Failures
The inquiry was sparked by the Commission's heavily criticised handling of a complaint against the charity that runs the Parliamentary and Health Service Ombudsman. The report uncovered what it describes as 'systemic problems' within the watchdog's approach.
MPs found that the Commission's investigation into the Ombudsman's charity was 'unacceptably slow' and its final report was 'unclear and confusing', failing to provide a conclusive outcome for the whistleblowers who raised concerns.
Core Demands for Change
The committee has set out a series of stringent recommendations to force the Commission to rebuild its reputation and effectiveness:
- An external review of the Commission's governance and operational efficiency.
- Clear, published timelines for all future investigations to ensure transparency and accountability.
- A commitment to providing definitive findings at the end of each inquiry, rather than ambiguous conclusions.
- Improved handling of whistleblowers to ensure they are properly protected and heard.
Committee chair William Wragg MP stated the evidence pointed to a regulator that is 'failing to perform its most basic function' and whose approach has 'eroded the trust of the public and the charitable sector alike.'
The Stakes for the Charity Sector
This critique strikes at the heart of the UK's charitable world, which relies on public goodwill and trust to function. The report warns that without robust and transparent regulation, the entire sector's reputation is at risk. The MPs have given the Commission a clear mandate: reform swiftly and significantly or face a further erosion of its credibility and authority.
