Unshackling Good Neighbours

Report of the Task Force established to consider how to cut red tape for small charities, voluntary organisations and social enterprises. Contents

2 Foreword

4 Introduction

9 What stops people giving time?

15 What stops people giving money?

18 What stops CSO’s growing?

Appendix A 28 Things you can do in your community Appendix B 30 Licences, permissions and registrations Appendix C 32 Terms of reference for the Civil Society Red Tape Task Force Appendix D 33 The Task Force members Appendix E 34 List of stakeholder contributors Appendix F 39 The coalition government’s principles of regulation 1 I was asked by Nick Hurd, the Minister for Civil Society, and Mark Prisk, the Minister of State for Business and Enterprise, to bring together a group to identify what stops us all giving more time and money to civil society organisations (CSO’s) (the collective noun we use in this report which includes small charities, social enterprises and voluntary and community organisations) and what prevents those CSO’S from growing if they want to. Increasing public engagement is clearly an important strand in a successful development of the ‘Big Society’. The Task Force has been overwhelmed by the interest shown by hundreds of individuals and organisations who responded to our call for evidence. We list them in Appendix E and if we have omitted anybody, we apologise. We want to thank them

2 all for the information and the ideas they gave us. The country is indeed fortunate to have such an army of committed volunteers and civil society organisations. We hope the recommendations of our Report will help them in the great work they do. I am also extremely grateful to those who were good enough to join the Task Force and who devoted both their time and their experience and deliberation – Lynne Berry, Andrew Hind, Graham Melmoth, David Thompson and David Tyler. And last, but not least, my thanks to the secretariat who have supported us so well – Ed Anderton, Corinne Gray, David Hale and Steve Wallace. We offer these recommendations to the Government, the sector and the public for debate and, hopefully, action.

Lord Hodgson of Astley Abbotts

‘May 2011’ 3 Introduction

Promises to reduce bureaucracy and red tape clearly strike a resonant chord with the public. Since the Task Force was announced in September, we have received submissions and comments from over 600 organisations and individuals. We are deeply indebted to them all, not least because an essential element of any successful rolling back are grass roots examples, showing in detail the perverse and often counter intuitive results of regulation. We have used as many of these as we can in the text of this Report to illustrate our recommendations.

Our work has been taking place these in this Report and have made Snow Code against the background of a changing recommendations about them. 2 scene. While the Task Force has been But far more significant in the battle The Government’s Snow Code is an studying the impact of red tape on civil excellent guide about how members against red tape is the prevailing of the public can and should clear society, a number of other initiatives attitude towards “risk”, the downgrading have been running in parallel. These snow from pavements, in their of the value placed on “common sense” neighbourhood. However, it opens include the introduction of a three and on the enabling nature of English year moratorium on new domestic with the following equivocal statement and Welsh Common Law. These (our underline) that could create doubt regulations for small organisations, factors together with a reluctance to reviews of Health and Safety, Criminal in people’s minds about whether or not extend any significant level of “trust” they are running the risk of being sued: Records checks and contingent fee – not just amongst central and local litigation as well as the launch of government but no less importantly There’s no law stopping you from the Red Tape Challenge. There is amongst the general public. clearing snow and ice on the pavement also the Coalition Government’s outside your home or from public Principles of Regulation (Appendix The Task Force has received a range of spaces. It’s unlikely you’ll be sued or F). Clearly, reducing the burdens on evidence identifying all too often that held legally responsible for any injuries small businesses and civil society guidance is couched in negative terms, on the path if you have cleared it organisations is a key aim of a reinforcing the view that a lawyer, with carefully. Follow the snow code when number of parts of government and a writ at the ready, waits around every clearing snow and ice safely. we encourage CSO’s to take the time corner. No sector is more affected to influence this where possible, for by this mind set than small civil We suggest that the opening statement example by responding to the Red society organisations. is changed to be more positive and the Tape Challenge.1 warning that the job needs to be done properly placed in the main body of the text. That having been said, as our predecessors in the working parties 2 www.direct.gov.uk/en/NI1/Newsroom/DG_191868i that produced “Charities and Voluntary Organisations Task Force Proposals for Reform” in 1994 and “Better Regulation for Civil Society” in 2005 found, rolling back red tape and lifting the burdens is not as easy as it sounds. There are, of course, regulations which are unnecessary, have become unnecessary, are duplicative or have had unintended consequences. We have identified a number of 1www.redtapechallenge.cabinetoffice.gov.uk 4 Birmingham Council Shifting this prevailing negative mind Local Council Procedure set is a huge challenge and one that 3 Local councils vary widely in their Birmingham City Council’s website cannot be achieved by legislation procedures. Doncaster Council, makes it very clear when a child needs alone. Our first contribution is to list for example, assesses applications a performing licence from the local in Appendix A some examples of within 14 days. Wolverhampton authority where they live to take part actions anybody can take on their own informs applicants of the outcome in some form of public performance. initiative, to help their community. within 12 weeks. Most councils The website says a licence is require applications to be made not needed: Regulatory Environment a month in advance; but North • When no payment is being made Of course there are “low hanging” fruit Lincolnshire requires all applications to the child or another person other of specific regulations which need to be submitted by 30 November than defraying expenses amendment or repeal. But for CSO’s, for collections the following year. • When there is no absence from issues of enforcement are equally Basingstoke has a simple one page school; and in the 6 months significant. For example, the Task form requiring the name of the charity proceeding the performance, the Force received a good deal of evidence and proposed dates for collections. child has not taken part in other about uneven regulation of charitable North Lincolnshire requires the names performances on more than 3 days; collections, as the following shows. and addresses of the charity’s secretary, treasurer, auditors and bankers. or the performance is given under Wolverhampton requires collectors the arrangements made by a school to undergo a police check. Surrey or made by a ‘Body of Persons’ Heath wants to know whether the approved by the Secretary of State collector is going to be accompanied or the local authority in whose area by an animal. (Alan Bookbinder, The the performance takes place. Sainsbury Foundation) The National Children’s Orchestra performs in both Birmingham Town Such unevenness of enforcement leads Hall and Symphony Hall. In August very quickly to a disproportionate 2010 the children performing in its emphasis on regulations. A further Under 13 Orchestra (which was the complication appears to be that finale to a nine day residential course) the enforcers are not always fully met the above requirements. Despite conversant or sufficiently well trained this, and after lengthy discussions in the regulations they are supposed with Birmingham City Council, the to be enforcing. Orchestra was still required to meet the Child Performance licensing requirement to enable it to perform. This caused confusion among the local authorities from whom licences had to be obtained, some of which were not clear about the requirement; others were clear that a licence was not required and puzzled why Birmingham was asking for one. Further the licences themselves were extremely lengthy, requiring different sections to be completed by parents/guardians, teachers and health practitioners. The licences also included questions about racial origin etc, which did not seem relevant. (National Children’s Orchestra of Great Britain).

3 www.birmingham.gov.uk/child-entertainment

5 Introduction continued

The Task Force has also been A second aspect of this red tape The Charity Commission concerned at the evidence received “band-wagon” is the tendency for indicating various ways in which the regulators to, as it was put to us, “take The Charity Commission accepted red tape “band-wagon” has developed. in each other’s washing” (ie to ask a recommendation from the “Better First, behind the regulations (however questions about regulations which Regulation for Civil Society” Report relevant) and behind the direct are not directly their concern). For that it should make clear in its enforcers of regulations (however example, appropriate CRB checks guidance when it is referring to legal well intentioned) lies a tangled web are a legal requirement. Should the requirements and when something is of supporting players. A quick visit Charity Commission (responsible basic good practice. A good example to the internet will reveal pages for enforcing Charity Law) be asking of how the Commission approaches offering a chance to train to become about CRB checks or OFSTED the publication of complicated an inspector of this or that (often (responsible for educational standards) guidance to ensure that it is fit for for surprisingly low fees). So there be asking questions about PAT purpose is its consultation on its new are training establishments, trainees checks? Should the responsibility not investment guidance for charities. The as well as trained personnel - all lie with the organisations to decide consultation draft ran to 75 pages, depending on the continuation of what is required to comply with the but the Commission also consulted regulation for their weekly wages. So law? The present situation, in which on a summary document with basic it is hardly surprising that few, if any, small CSO’s are asked over and over information, signposting where more wish to question the value of what about regulatory compliance, tends to detail can be found. The responses to they are doing. In fact, they are much undermine their confidence in their the consultation have resulted in the more likely to draw attention to the own judgment and to feel that “they Commission making improvements possibility of grave danger to the must do something”. to the text and also considering how to make the guidance shorter. public of any reduction in their efforts. Thirdly, the red tape “band-wagon” Health and Safety is caused by a blurring of the lines in a Shropshire School between “regulation” and “guidance”. Guidance is often produced in response A school in Shropshire has been to specific requests (a natural and advised by a health and safety entirely positive response!) but it consultant that it needed to have a can then assume the form of ceiling mounted projector, used for a legal requirement and so add to computer presentations, to be subject the regulatory burden. One of our to a portable appliance test (PAT test) respondents said that reading the every year. In fact, Heath and Safety Charity Commission’s Guidance on Executive guidance on maintaining the duties of a trustee, left him feeling portable electrical equipment4 indicates “terrified”. In reality, the obligations of that there should be a formal visual a trustee are undoubtedly serious but check every two to four years by nevertheless are quite capable of being someone trained to carry out such discharged by a person of honesty checks (not necessarily an electrician) and commonsense. and, if at all required, PAT tests are only needed every five years.

4 www.hse.gov.uk/pubns/indg236.pdf

6 The Task Force welcomes the way the Issues for the Public Charity Commission has implemented the recommendations of the last working As noted above, rolling back red tape group and propose that other public is not just a matter for national or local bodies, that do not clearly differentiate government. between legal requirements and good practice, should follow the Too often we have come across cases Commission’s example. where CSO’s welcome the role of the regulator as providing “cover” in case Finally, there are the myths. Anecdotes of problems. Reducing the bureaucratic passed on via the factory floor, the pub burden will in part depend on charity or the golf club get picked up by local trustees and members of CSO’s having and national media. As regulators have the confidence to trust their judgment told us, despite repeated efforts to “kill” and their common sense. For example, these stories, they appear to have a life CRB checks are a lot more transferable of their own. than many people and organisations believe. Later in the Report we make The Task Force and the NFU some suggestions as to how the law The Task Force Chair was approached could help in this. after a meeting by a lady who said Grass Roots that she understood that the National Farmers Union (NFU) had advised Many grass roots organisations are farmers against using tractors to clear highly reliant on the goodwill of last winters snow on lanes around volunteers to support and deliver their farms. services. These organisations are In fact, in December 2010, the NFU acutely aware of the need to effectively advised its members on its website safeguard their users but the cost that it welcomed HM Revenue and of CRB checking volunteers is often Customs agreement that farmers could prohibitive. Many volunteers are active use red diesel to fuel their tractors in multiple settings, for example, the when using them to clear and grit volunteer parent governor is also roads in extreme weather conditions. happy to help with the local scout The NFU also said it would like to see troop, the school teacher by day is the local councils providing farmers with volunteer soccer coach by night but grit and other equipment, so they even if they have had a recent CRB could really make a difference. check, it needs to be done again by each organisation with whom the volunteer engages. This is costly and the red tape of completing another check puts people off volunteering. (National Youth Agency)

There appears to be a variable understanding amongst the public of what constitutes an acceptable level of “risk”. One cannot, and should not, accept any death or injury with equanimity but increasing the regulatory burden to reduce risk in areas which are already low risk, but which public opinion and the media nevertheless perceives as “risky”, may cost a great deal and achieve little, if anything.

7 Introduction continued

There is also confusion about Finally there is the role of the media in “transferred risk”. So while children publicising accidents, lawsuits etc. Of may be saved from some risks by course the media has an essential role not going on school trips (though to play in exposing incompetence and their educational experience may be inefficiency. But reporting, which is not reduced), risks still exist at home. The set in context, can give the impression difference is that the public is inclined of an overwhelming “danger” in to accept the inevitability of these becoming involved. Reports of bizarre tragic events at home – an inevitability legal cases, often written to show their which they do not accept with regard futility, can have the perverse effect of to events on school trips. still further discouraging volunteers whose psychological reaction is “I Transferred Risk never thought I could be sued for that...!!”. An example of this “transferred risk” is the Hatfield rail crash in These are the key recommendations of 2000 which caused four deaths. As the Task Force, which are explained in a result, Railtrack imposed speed more detail in the sections that follow: restrictions on many parts of the rail network, causing massive disruption. • Consider reforms to the law to Consequently many people turned to clarify the extent of charity trustee road usage – a much more dangerous and volunteer liability to encourage form of transport. It has been more involvement and participation. calculated that five additional people • Eliminate regulatory duplication died on the road in the first month and repeated requests for the same the Railtrack speed restrictions were in 5 information in slightly different place (see “Who’s Risk is it Anyway ”). formats, for example by Companies Moreover, the fact that in that year House, the Charity Commission and Reported Road Casualties Great commissioners. Britain recorded that 3,409 people died in road accidents, compared to 39 • Establish a Working Party to include on the railway in the years 1999 and representatives of the insurance 20006, did not attract anything like the industry and the CSO’s to address publicity of the rail crash because the the insurance needs of the sector. figures were not unusual and therefore • Encourage fund raising for CSO’s more accepted. by creating a new category of “social

5 http://webarchive.nationalarchives.gov.uk/20100402230200/ investor” and clarifying the position http://archive.cabinetoffice.gov.uk/brc/upload/assets/www.brc. of trust law with regard to charities. gov.uk/risk_res_reg.pdf 6 www.transport-watch.co.uk/transport-fact-sheet-2.htm • Provide clear standard guidance as regards the licensing of fund raising events to local authorities and the sector. The Government should simplify the whole regime. • Display posters prominently in all Job Centres encouraging volunteering and emphasising that it does not affect benefits.

8 What stops people giving time?

It was estimated that in 2010 as many as 41% of the population formally volunteered once a year, but the number volunteering once a month is only 26%7. What is behind this difference? The Task Force has concluded that the reasons people do not volunteer more regularly are the result of a subtle mix of economic and societal influences, in which regulatory structures play a part. In this section we have attempted to identify the main themes and offer ways they can be addressed. 7UK Civil Society Almanac 2010 at www.ncvo-vol.org.uk/almanac2010

9 What stops people giving time? continued

Risk of Litigation This seems to fall short of the Opportunities for recommendation in Common Sense, unemployed people Rightly or wrongly the fear of becoming Common Safety11 to “clarify (through involved in litigation is a major legislation if necessary) that people will The CSO sector offers an attractive preoccupation. We emphasise the use not be held liable for any consequences re-entry point to the world of work. of the word “fear” – ask an individual due to well-intentioned voluntary acts For the unemployed, particularly the about practical examples involving on their part”. long term unemployed, the disciplines people they know and there are few of a 9-5 existence in a commercial So what can be done? The Task Force responses. More often it is about enterprise allied to a fragile sense of is attracted by the possibilities of “friends of friends” or “read in self esteem can seem daunting. In such developing a “reasonableness test” the newspapers”. situations voluntary groups are well for volunteers. This could be achieved placed to help. Lawyers with whom we have discussed in different ways: this have focused very much on this Despite progress that has been made • The Attorney General should point of myth rather than reality. by Job Centres, the Task Force has immediately refer the issue of Further, they point out that the law come across too many cases where volunteer, including charity trustee, is there to protect “reasonable people”. staff in Job Centres are unaware of the liability, to the Charity Tribunal In our view this latter argument regulations on voluntary work and with a request to examine whether fails to address this perception of have suggested that if an unemployed a reasonableness test for voluntary risk – the time it takes, the potential person has taken voluntary work, activity could be established. While cost exposure and the associated even if for a few hours with no pay, any determination would affect psychological pressure. he or she would suffer a deduction of charities only and would not bind benefit. The regulations make it clear Those affected could be either courts generally, it could serve as a that voluntary work is not of itself individuals carrying out a voluntary marker and, more importantly, send a ground for disqualification12. act or individuals engaging in formal a signal to the wider public about volunteering eg in a charity. Some the direction of travel on this 12 www.direct.gov.uk/en/HomeAndCommunity/ progress has been made in providing important issue. Gettinginvolvedinyourcommunity/Volunteering/DG_064299 reassurance. For example, as noted • Subsequently the Law Commission earlier albeit in negative terms, the should be asked to examine these Ministry of Justice worked with the issues to see whether there are Department for Transport to produce statutory changes that could usefully guidance on clearing snow8 and the be made. Health and Safety Executive has produced guidance on health and If neither of these approaches proves safety and civil law9. However, these fruitful, the Government should specific responses are unlikely to consider how this issue can be provide volunteers, including charity best addressed. trustees, with the general reassurance The Task Force accepts that these they seek. The Ministry of Justice has recommendations may not be popular said it does not intend to undertake with some sections of the law who any further work directly on this. may regard them as being entirely Instead, it will work with relevant superfluous. We argue that society government departments to provide needs to find ways to reassure the 10 advice to the public when appropriate . would be Good Neighbour and this

8 www.direct.gov.uk/en/Nl1/Newsroom/DG_191868 is a way of achieving that. 9 www.hse.gov.uk/voluntary/when-it-applies.htm 10 www.dwp.gov.uk/docs/cscs-progress-21mar11.pdf 11 www.number10.gov.uk/wp-content/uploads/402906_ CommonSense_acc.pdf

10 Volunteering The Task Force appreciates the Insurance difficulty of ensuring that all the People can volunteer while receiving thousands of staff employed in Job Provision of the necessary insurance, most state benefits. For those claiming Centres (often experiencing a fairly at reasonable cost, would represent Jobseekers Allowance and looking rapid degree of staff turnover) are another major step in reassuring for work, volunteering can be a familiar with all aspects of complex individuals about their personal particularly valuable way of gaining rules. In order to address the problems exposure. Insurance companies appear new skills and experience. posed by rapid staff turnover, the ready to write more business in the The main challenges appear to be: Task Force is attracted by the proposal CSO area. The CSO claims record that posters explaining the position appears satisfactory. Why then has this • Despite the obvious benefits, some of volunteers should be prominently issue given rise to so many complaints? Jobcentre Plus staff continue to displayed in all Job Centres. In actively discourage volunteering In part it appears to arise from an addition, we recommend that the inequality of size – on the one hand or do not promote volunteering guidance on this point be emphasised as a valuable option. small CSO’s seeking insurance for and repeated to staff at regular not very well documented risks, often • In the worst cases, Jobcentre Plus intervals in the future. at very short notice; on the other the staff sometimes cut benefits in the There should also be improved liaison response being given by very large mistaken belief that volunteering at local level between CSO’s and companies operating in a complex while receiving benefits constitutes Job Centres so that a degree of pre competitive market. some form of benefits fraud. screening should take place to ensure No less influential has been the • The overall effect of this approach, that only suitable individuals are put in actions of “risk consultants”. Their mistakenly being applied by some contact with CSO’s. The practice of Job role is described in detail in Lord staff, is to discourage people Centres making a wholesale reference Young’s health and safety review13. on low incomes (including the of individuals, including those who As Lord Young points out, there unemployed and young people) have no real interest in undertaking is no agreed training standard or from volunteering. voluntary work, places a considerable professional qualification for these burden of fruitless interviewing and Volunteering England has been types of consultant. Nevertheless the referencing on the individual CSO’s. working with Jobcentre Plus for a completion of a lengthy, complex assessment, too often by a consultant, number of years to tackle this issue. Avenues Group In the Spring we signed a national is a pre-condition set by insurance agreement and are putting in place Avenues Group advertised through companies. Further consultants, an action plan to outline how the two a Job Centre for home care workers. understandably, have no interest organisations can better work together, The Job Centre provided 60 candidates. in understating the risks – rather to improve the support and advice However there was little evidence of the reverse by erring on the side of provided to benefit claimants seeking the candidates being matched to the caution. We support Lord Young’s to volunteer. (Volunteering England). available jobs. Of the 60 candidates, proposal to reorganise the role and only 40 turned up for interview. training of these consultants and Of the 40 candidates 30 were offered welcome the steps already taken employment on a variety of hours. to establish the Occupational Safety However the 30 were reduced partially and Health Consultants Register. by failing pre-employment checks, This is a multi faceted problem so CRB checks and occupational health the Task Force concluded that the checks, and the effect the work would best way forward was to focus on have on their benefits (ie leaving them solving a single insurance issue, to see financially worse off when expenses if that might provide a key to a more such as travel costs and child care were general approach. taken into account). In the end, only We selected an issue which had been 8 of the 60 candidates were employed repeatedly raised with us, that of the by Avenues Group. insurance requirements for volunteer drivers. Those, for example, who undertake invaluable work taking the elderly or infirm to hospitals, day centres etc. 13 www.number10.gov.uk/wp-content/uploads/402906_ CommonSense_acc.pdf

11 What stops people giving time? continued

Volunteer Drivers The Task Force notes the action being CRB Checks taken on this by the Department for At present volunteer drivers should Communities and Local Government About 8 years ago, I decided to get tell their insurance company about (DCLG). DCLG is starting discussions involved in a local Manchester Drama their volunteer driving, because not with the insurance sector about an group, whose members range from every insurance company accepts industry code of practice on health and 7 to 80 years old. A number of us this as being “social driving”. In safety for businesses and the voluntary assumed responsibility for teaching 2010 WRVS paid 10,088 volunteers sector. The code would deal with the children and preparing them for mileage expenses for using their concerns that businesses, operating in the annual pantomime and other cars. During that year those drivers low hazard environments, are required productions. Naturally, we were CRB had very different experiences when by insurers to employ consultants checked – a process I had no issue insuring their cars. Of the seven to carry out full health and safety risk with and wholeheartedly support. insurance companies, about which assessments; and in environments However – having been CRB WRVS received information, only where assessments were necessary, approved, we were invited to a session one accepted verbally that volunteer help ensures that only qualified with the local child protection officer. driving should not attract an increased consultants are used. I came away from that meeting with premium. Others required at least a number of very serious questions written correspondence before Other Reports as to whether I should get involved agreeing this, and one increased the with this sort of group. The talk left me premium and would not reduce it. While the Task Force has been at work, there have been three other reports feeling I would potentially be placing The Task Force welcomes the that touch on our area of interest. We myself in situations of real risk. willingness of the Association of find ourselves in broad agreement The child protection officer focussed British Insurers (ABI) to engage with all three. It would be wearisome the session on ensuring no adult put with volunteering organisations, the to repeat their detailed conclusions themselves in a vulnerable position Task Force secretariat and insurance but we comment briefly as follows. eg if a child requests to go to the companies with the aim of creating toilet – in no circumstance should an a revised definition of social driving Criminal Records Review adult accompany them. If a child (with to include volunteer driving, that the particular reference to girls) falls and companies can use in their motor We strongly support the proposal for cuts her knee, whilst wearing tights insurance policies . This will save a CRB passport. The present system – under no circumstance should any work and provide clarity for both of repeated individual checks is both adult remove the girl’s tights and help the drivers and the companies. ABI expensive and time consuming. It also stem the bleed. No adult, whatever will also be publishing on its website delays the time at which a volunteer sex, should ever be alone with either which companies are using the can begin to work. one or more children. new definition. But we also urge CSO’s to avoid using Needless to say, I came away from the The Task Force was encouraged by a CRB check as the default option. session questioning the sense in many the progress made on this single issue CRB checks are only required for people of the messages conveyed. As a caring 14 in a relatively short space of time. having “frequent and intensive” responsible adult (who as an adoptive Accordingly, we recommend that a contact with children and vulnerable mum now has the highest level of working group be set up incorporating adults. For example, many school CRB clearance), I did not feel at all representatives of both the insurance governors do not have such “frequent comfortable with the prospect of not industry and CSO’s to address other and intensive” contact. Trust and being able to help an injured child etc. insurance issues, as they arise. An early judgement have an important part to (Roz Cuschieri) candidate for a discussion is the overly play. From the evidence the Task Force widespread request by the insurance has received, the challenges arise from industry for lengthy, complex risk both overzealous interpretation of the assessments, referred to above. rules and risk aversion at every stage, which can easily put off volunteers, as the following examples show. 14 At http://www.crb.homeoffice.gov.uk/faqs/definitions.aspx

12 Volunteering Claims Management Companies We agree that there should be consultation with the insurance As a student at Oxford University Two examples the Task Force is aware industry to ensure worthwhile I was looking for opportunities to of are: activities are not unnecessarily develop my extra-curricular activities. • A doctor in Woking suffered very curtailed on health and safety grounds The Oxford Museums Project was minor damage to his car and no – our Working Group (see above seeking volunteers to help at the injury to himself when a driver section on insurance) is designed Museum of Oxford; a museum that backed into it in a supermarket car to achieve this. had been threatened with closure due park. The issue was resolved on the to council budget cuts. I decided this The Task Force also supports the spot by the other driver admitting proposal to require officials who ban would be a valuable and mutually liability and offering to pay for the beneficial experience and expressed events on health and safety grounds repair. A firm of ‘Personal Injury to put their reasons in writing. People an interest. I received an enthusiastic Specialists’ found out the doctor’s reply, thanking me for my interest and should also be offered the opportunity telephone number and telephoned to challenge local officials’ decisions providing details. The tasks included him asking if he had suffered assisting museum staff with their jobs: and refer unfair rulings to the whiplash. When the doctor said ‘no’, Ombudsman through a fast track preparing and delivering workshops, the caller then asked if the doctor setting up and clearing away and process, ensuring that decisions can had been in shock. Again the answer be reviewed within two weeks. working with children. I was also told was in the negative. The final ploy that I would need to have a Criminal was simply to ask the doctor if he We understand that action on the Record Bureau check. In the end, would like to make £3-4,000. above has been included in the section I decided not to volunteer, largely “Reinvigorating Local Accountability, because I disagreed with this policy. • A mother has two sons who are Democracy and Participation” of frequent attendees at the Accident the Department for Communities and Emergency Department of and Local Government’s published Proposals for Reform their local hospital due to accidents Business Plan and that any necessary of Civil Litigation Funding occurring when using their BMX legislation (which would also deal with bikes. Again ‘Personal Injury the wider role of the Ombudsman) Many of the issues addressed in Lord Specialists’ have somehow got hold should be scheduled for 2012. Justice Jackson’s Report were raised of their details and have not only Further we understand that the in the evidence we received and we offered their services to the sons Local Government Ombudsman has support his broad approach. The Task but to the mother as well, in case agreed to look at, without delay, an Force recognises the need for proper she can think of something to make administrative mechanism for fast- access to justice but felt that the present a claim about. tracking complaints about excessive system had led to an “inequality of use of health and safety enforcement arms” between defendant and plaintiff, powers. The Task Force supports both with consequences for people’s Common Sense, these approaches. willingness to volunteer. Common Safety Review

In particular the role of Claims Lord Young’s Review contained Management Companies, who receive several recommendations of value fees from solicitors for referring cases to CSO’s. Specifically, as noted above, to them, appeared almost entirely the requirement for complex risk malign with a tendency to appeal assessments, particularly where to naked greed where no or minimal carried out by untrained consultants, injury or damage had been suffered. represents a real deterrent to volunteer The extent of the potential problem activity at every level. We welcome the can be seen by viewing the ‘Personal work that has already been done by Injury Specialist’ sections of any Yellow the Health and Safety Executive to Pages. In the Manchester version, simplify risk assessments for voluntary for example, there is a list of 67 15 groups and help them carry out practicing firms . assessments for themselves. 15 www.yell.com/ucs/

13 What stops people giving time? continued

Areas for Further Study The Task Force suggests that further Summary of recommendations study in this area could be beneficial for this section Amongst the evidence we have and hopes that the day might come received, two further issues stand when work in CSO’s might be seen • The Attorney General should make out. They lie outside the terms of our as an essential part of the career a reference to the Charity Tribunal Report but seem worthy of further study. development of our future asking it to consider establishing a commercial leaders. test of reasonableness for volunteers. Volunteering and • The Law Commission should be Career Development Rehabilitation of Offenders asked to consider whether current Many small CSO’s lack managerial The value of using CSO’s to help law provides adequate protection capabilities – their leaders are rightly the unemployed back into work to volunteers. and understandably impact/output has already been discussed. These • If neither of these prove fruitful, the orientated. Commercial companies arguments apply with equal or Government should consider how and professional partnerships could greater force to the employment of the issue of volunteer liability should assist by helping to provide some of ex-offenders. Criminologists generally be addressed. these missing managerial resources. agree that purposeful work is one of • Posters should be prominently While this would undoubtedly help the best antidotes to re-offending. displayed in all Job Centres and the individual CSO, it would not just But CSO’s can, unsurprisingly, be there should be regular emphasis on be one-way traffic. Many middle deterred from employing those with guidance on the rules concerning managers would benefit in their a criminal record, even when the unemployed individuals undertaking commercial careers by some exposure conviction is for a relatively trivial crime. voluntary work and links between to the challenges of CSO’s – volunteers individual Job Centres and their local are by no means easy to manage! – as While it goes without saying that CSO’s should be improved. well as by coming face to face with the those convicted of serious crimes realities of some of the problems and must continue to be identified, • A Working Party should be established challenges in the community in which the Task Force was impressed by by the insurance industry and CSO’s they live and work. arguments that the present position, to provide a forum to address the as regard disclosure of low level insurance needs of the sector. offences, is unnecessarily onerous. • The broad proposals contained We came across cases where, what in the Reviews of Criminal Records, can fairly be described as, “youthful Health and Safety and Contingent exuberance” had damaged employment Fee Litigation should be and volunteering prospects for followed through. several years.

14 What stops people giving money?

56% of the population gave £10.6 bn to charity in 2009/10 (the last year for which records are available). Charitable giving peaked at an annual total of £11.3bn in 2007/8 so it has clearly been affected by the economic recession. Given the current economic conditions, which are expected to persist for the next few years, it seems probable that fund raising will remain a particular challenge during the period. Accordingly the Task Force has focused its attention on making recommendations that will simplify, as far as possible, the process of giving.

15 What stops people giving money? continued

1 Licensing Accordingly the Task Force 2 Tax effective giving recommends that: Many smaller CSO’s such as parochial Relatively modest individual donations • The current rules for licensing and church councils, parent teacher are the life blood of thousands of regulating charitable collections associations and Scout groups smaller CSO’s. Governments have are ineffective, confusing and undertake fund raising on a local or encouraged this, for example, through burdensome and do little to deter semi local basis. There is a confusing Gift Aid. This has been a success. In bogus collections. The Charities welter of legislation covering 2009/10 tax reliefs for charities and Act 2006 attempted to rectify this, fundraising activities. The Task Force donors cost over £3bn a year of which but the relevant provisions do not received evidence that for a fund Gift Aid is the largest single relief, now appear to have created a workable raising event at which music was to worth nearly £1bn to charities each regime. Consequently we support be played, a sporting event shown on year. And gross donations made under proposals that the effectiveness television and alcohol served, over 10 Gift Aid amounted to almost £4.6bn, of this licensing regime should be separate licenses could be required. an increase of 6.5% over the previous considered as part of the Five Year For the full list of licenses required for year. However, the Task Force received Review of the Charities Act 2006. various events, see Appendix B. It is a good deal of evidence that the clear that this is much resented by • Immediately, the Department for process of Gift Aid was cumbersome the public. Culture, Media and Sport should and bureaucratic in its administration. disseminate a good example of Therefore, the Task Force welcomed Church Raffle best practice guidance for licensing the Budget announcements to address regulation for distribution to local this and other measures to encourage My parish church is having a church authorities. It also should be made greater giving. In particular: raffle – you may imagine the gifts do available to CSO’s via Government • increasing the Gift Aid benefit limit not include a week in the Caribbean, and Charity Commission websites from £500 to £2,500 from April 2011 but rather, for instance, a £25 voucher as well as through the umbrella for donations over £10,000, better for the local butcher. They have to have bodies (NCVO, ACEVO, NAVCA, to allow charities to recognise the a licence to carry out this activity and Community Matters etc) and the generosity of their donors; frankly I have never heard anything government should simplify the so ridiculous in my life. I am sure there system, for example the definitions • streamlining the Gift Aid system by should be some de minimis way in of and different regulations covering introducing online filing in 2012-13 which one could protect people from a) incidental non-commercial with ‘intelligent forms’ as a first step, dodgy raffles, whilst allowing charities lotteries; b) private lotteries; c) from 1 April 2011, for charities to to carry on activities unhampered society lotteries and d) large apply and claim tax reliefs; by unnecessary bureaucracy. society lotteries. (Andrew Robathan MP) • introducing a new ‘Gift Aid Small • The role of the Fund Raising Donations Scheme’ in April 2013 to Moreover much of the guidance Standards Board (the self regulatory enable Gift Aid to be claimed on small on local authority websites is uneven, body established by the sector) donations up to £5,000 without the difficult to find and in some cases should be examined as part of the need for paperwork. nonexistent. Five Year Review of the Charities The Task Force also welcomed other Act 2006. If self regulation of fund By contrast, some local authorities measures, such as exploring how raising is felt to have been effective have made great efforts to provide to increase the take up of Payroll we recommend that their remit clear and unambiguous advice. Giving, legislating to enable HMRC be extended to provide flexibility, Brighton Resource Centre provides to make repayments of tax to certain simplicity and proportionality excellent basic guidance about when charities without requiring a tax of approach. CSO’s are likely to need licences and return, reducing the rate of inheritance signposts where CSO’s in Brighton tax when 10% or more of an estate can find more detailedinformation 16. is left to charity and consulting on 16 www.resourcecentre.org.uk/information/events/info_html/ how to encourage the donation of licensing.asp pre-eminent works of art and other historical objects to the nation.

16 3 Mixed Purpose Investment 4 Creating the “Social Investor” The Task Force concluded that large scale fund raising for CSO’s might be The Charity Commission has recently During its work, the Task Force was facilitated by the creation in law of a conducted a consultation on its made aware of the unevenness of the “social investor” – a person for whom guidance on Charity and Investment present structure by which different the social return on the investment Matters. The draft guidance is forms of CSO’s were regulated. We was as important as the financial one. considered to be constructive with recommend further study of this issue The Task Force became aware of a respect to mixed purpose investments later in this report. proposal to achieve the level playing (ie cases where charities invest for However, a consequential impact is field for fund raising by extending the a social as well as a financial return). a very different regime governing legal form exemptions in the Financial However, the Task Force has been fund raising – based entirely on the Promotions Order and at the same advised that the Charity Commission corporate form adopted. We learned time establishing in a new “social is constrained by case law on charity that a number of CSO’s were “forcing” investor” concept. We support these investment powers. Such case law themselves (whether suitable or not) proposals and the consequent creation is largely rooted in private trusts to adopt the Industrial and Provident of a social investor concept with an law where there is an obligation Society form because it offered a more appropriate proportionate regulatory to maintain capital to protect the relaxed fund raising regime. The Task underpinning. interests of future beneficiaries (eg Force concluded that such an approach pension funds). Moreover, the case was likely to have unfortunate Summary of Recommendations law dates from an era which precedes consequences at some point in for this section the rise of the social enterprise the future. movement and the development • Clearer guidance for licensing of social investment opportunities. In parallel with this the Task Force of fund raising events should was surprised to learn that while be provided immediately. We believe that there is a need for individuals are free to give money to a new statutory power to permit CSO’s, whose objectives they support, • Simplification of the charitable charities to engage in mixed purpose they are effectively prevented by the licensing regime should be investments. Such a power would give regulatory regime from investing addressed as part of the Five Year confidence to trustees by removing in such projects. It seemed to the Review of the Charities Act 2006. the risk of a breach of trust claim Task Force that it made no sense An increased role for the Fund and would serve to clarify the tax that individuals could give money to Raising Standards Board in this and accounting treatment of charity community and social finance schemes process should be considered. mixed purpose investment. It would but could not invest in those same • Changes to encourage payroll provide a clear power for charities schemes which, while involving some with permanent endowment funds to giving by smaller companies should risk, might nevertheless return their be implemented. invest in mixed purpose investments investment to them. (eg social impact bonds). It would, • Trust Law, as regards charities with of course, be a power not a duty. This is a major issue which involves permanent endowment seeking to The Task Force understands that there domestic and European law. But the make mixed purpose investments, is a Trusts Capital and Income Bill Task Force learned of various exemptions should be reviewed. currently in preparation, which might which already allow investments to • A category of “social investor” provide a statutory avenue to make be offered to “experienced investors”, following the existing regulatory this change and we recommend that without the full rigour of regulation framework for “experienced this be followed up. which are required for offers to the general public. investor”, should be developed.

17 What stops CSO’s growing? continued

The Task Force considered whether there were any specific regulatory or bureaucratic burdens inhibiting the development of small CSO’s. First we noted that many CSO’s did not wish to grow. We discuss the implications of this in the section on “commissioning” below, but, in summary, some groups value their independence above everything and believe that growth not only risks this but also compromises their impact and effectiveness. During the time of our work, the Government announced a three year moratorium on new domestic regulation for micro-businesses. The Task Force welcomes that announcement but makes the following additional proposals.

18 1 Eliminating Regulatory 2 The Management We recognise that there is an issue Duplication of Small CSO’s as regards the protection of creditors, in that unincorporated charities have Small CSO’s resent form filling. While Small CSO’s are spurred by the no means to disclose charges. But we they accept that some is necessary, the imagination, drive and dedication recommend that the possibility is Task Force was told repeatedly about of small groups of people, or indeed explored of whether some trade off the same information being asked for sometimes a single individual. These in this area can be achieved. over and over but each time in people donate countless hours to their a slightly different format. chosen task in a way that is wholly 3 Trustee Rotation admirable. But there is a downside Prime amongst these are annual Very often the main problem of returns. Companies House and the – particularly if they are seeking to grow. The very characteristics that voluntary groups is persuading Charity Commission require different anybody to stand as a trustee or Annual Returns. We cannot accept make these groups effective can make them dismissive of management officer. But the Task Force was made that it is impossible to devise one aware of CSO’s where trustees form to cover the purposes of both and administration. This was raised as an issue in Skills-Third Sector’s appeared to have become unwilling bodies. There are well over 30,000 to accept new blood. The Task Force charitable companies so this one consultation with the sector in 2010 and resulted in governance and recommends that, where possible, best change would represent a practice should suggest reasonably considerable saving of time. leadership and skills for business being identified in the National Skills regular rotation of trustees (perhaps But we believe this should only be the Framework17 as two of the four skills following the lines of limited company first step. We note below that, in our areas that are critical to the future directors). The Task Force notes that view, Pre Qualification Questionnaires performance of CSO’s. the Charity Commission and Voluntary (PQQ’s) have little value for and Community Sector Codes of commissioners dealing with small Indeed, a major concern of the Task Governance18 already recommend this. CSO’s, yet their completion can Force has been that if private sector represent a considerable bureaucratic fund raising were to develop fast, Winding Up burden for small groups. Therefore, if there may be insufficient CSO’s with commissioners are to insist on some the management capability to deploy Charities are not immune to the form of pre qualification information, these funds effectively. It would be impact of changing social conditions they should use the Annual Return disastrous for the sector if major and patterns of life. The Task Force and accounts for this purpose. We scandal were to follow. came across examples where the therefore recommend that central The Task Force believes there are original purpose for which the charity and local government, together with specific ways by which additional had been established had faded away Companies House and the Charity management resources could be yet, because of the rules governing Commission, should consider how made available. permanent endowment, disposal best to achieve this. We also recommend of assets was believed to be both there should be a facility for charitable Trustee Liability expensive and cumbersome. companies only to have to file The Task Force believes that it is in the accounts once with both regulators. In an earlier section we discussed the interest of the sector, the country and prevailing fear of being sued, which the taxpayer that it should be made deters volunteers. The same applies easier for charities, especially those to trustees who have the additional with permanent endowment, to wind exposure of unlimited liability where themselves up and recycle their assets their charity is not already underpinned to more relevant charitable purposes. by a charitable company limited by guarantee. We recommend that this topic should form part of the Five Year Review of The Task Force therefore recommends the Charities Act 2006. that, in order to encourage local 17 www.skills-thirdsector.org.uk/research_policy/skills_strategy_ business people and professionals to consultation/ become involved with local charities, 18 http://www.charitycommission.gov.uk/Charity_requirements_ guidance/Charity_governance/Good_governance/default. consideration should be given to aspx and http://www.charitycommission.gov.uk/Charity_ amending the law to offer trustees requirements_guidance/Charity_governance/Good_governance/ good_gov_code.aspx of unincorporated charities the limited liability available to a director of a company.

19 What stops CSO’s growing? continued

4 The Role of Local Government Charteris Letter to the Daily Telegraph

It is an accepted fact that the country “We regret that we had to shut Charteris, SIR – As a treasurer of three registered is going through a period of financial but it’s for your own safety. It’s just too charities, I share the concern of those readjustment – a readjustment that dangerous to allow anyone but Brent who fear for the abolition of cheques will continue for several years to come. to run it. Fortunately our red tape will (report, December 17). The Charities CSO’s cannot expect to be exempt strangle any community group that tries Act 2006 resulted in all charities from the consequences. to keep Charteris open.” (Spoof council having to have at least two signatures letter fixed to the Charteris Centre to effect withdrawals. Paying by Local government has a particularly in Brent according to an article in the cheque is, therefore, the ideal way close relationship with small CSO’s. Financial Times on 13 April 2011. A local of remaining within the law. The reaction of individual local residents group is considering running authorities to the economic situation, It is not currently possible to pay the centre but express the view that they could have a disproportionate effect by debit or credit card where two believe the local authority has on small CSO’s in their areas. As one signatures are required. Electronic been uncooperative.) CSO put it “it’s like being in bed with banking can allow for two signatures, an elephant which is threatening to No doubt some “horror stories” will but not where the signatories are not roll over”. turn out to be myths. However, we together at one time. One charity I am involved in has counter-signatories in The Task Force has come across recommend continued vigilance by Kent and Sussex. I live in Cheshire. examples at both ends of the spectrum central government and the general as the following demonstrate. public as to the proportionality of the While I am all in favour of commercial sharing of reductions in expenditure transactions being automated, there Budget Cuts between local authority permanent staff seems to be a lack of appreciation and voluntary bodies. In this connection of how the other half lives. (Letter Calderdale Metropolitan Borough the Task Force supports DCLG with the to the Daily Telegraph published Council has responded to budget cuts in proposals made in the recently published on 18 December 2009) a proactive and Compact compliant way consultation paper on Best Value by marketing its consultation, impact Statutory Guidance19. The proposals The Task Force recommends that report and draft budget. include for local authorities to seek to any withdrawal of cheques must be By encouraging wide scrutiny of the draft avoid disproportionate reductions in accompanied by the introduction of budget and accompanying documents, funding to voluntary and community an alternative simple, flexible, trusted the Council has allowed itself to be more organisations and giving at least three means of transferring value from one accountable with its partners in the months’ notice to such organisations, party to another. voluntary and community sector. As a if they plan to reduce or end funding result, if the proposed cuts for 2012/2013 or other support. CSO’s are urged 6 Commissioning to respond to the consultation paper. are carried, they are likely to be better No topic has set the Task Force informed and more widely understood. more challenges than unravelling 5 Withdrawal of Cheques The trust built with voluntary and the complex relationships that community sector partners could lead to The banking community has said that exist between small CSO’s and stronger relationships and closer working a final decision on the withdrawal commissioners and considering in the future, which in turn could of cheques will be made in 2016 for how these might be strengthened result in better, more efficient services. implementation in 2018. That may be the and improved. (Compact Voice). proposal but the reality is that the system is already acting as if the withdrawal of Issues of Scale cheques is an accomplished fact (eg the In part, this is the result of the huge withdrawal of the cheque guarantee scale of modern commissioning, worth system this summer). £12.8bn to voluntary organisations For small CSO’s in particular, this in 2007/8 (ONS statistics), which is proposal poses considerable challenges. carried out by a variety of departments Cheques are a major means of payment of central government (DH, MOJ, – not least because they provide an DWP etc), each of which has very important control mechanism through different responsibilities, often the use of joint signatures. Moreover, working to very different timescales not all CSO’s have electronic access. and measuring performance in very different ways. 19 www.communities.gov.uk/documents/localgovernment/ pdf/1885419.pdf 20 A further complication is that Creating Civil Society Consortia 2. Commissioners should be asked commissioning is undertaken not to pay particular attention to the only by central government and local How could small CSO’s position development of these groups and health bodies, but also directly by themselves better to be able to the “add on” benefits they can give local government. For small CSO’s meet the scale of the demands of to local society. commissioners? One way forward the attitude and approach adopted 3. The Government should consider would be for groups of small CSO’s by their particular commissioners, as changes to the VAT Regulations to collaborate to form a consortia. noted in the previous section, will be which will facilitate inter organisation This would require the loss of some of critical importance. and service sharing for CSO’s. independence and the pooling of There are estimated now to be several sovereignty (both assets that are often 4. Government policy should thousand commissioners of services richly prized by small CSO’s), together acknowledge the difficulty of small – a figure which is anticipated will with the acceptance of managerial CSO’s providing pensions to match rise still further as the Public Sector assistance of a greater degree of those currently available in central reforms are rolled out. complexity and sophistication than and local government, unless Many of these commissioners operate each civil society organisation may be sufficient funds are transferred on a scale beyond the reach of all but individually used to or able to access. to cover future liabilities. a handful of very large civil society In adopting such an approach there organisations. Normally therefore, if are technical issues to be overcome, Nevertheless the Task Force recognises they wish to provide commissioned such as the need to charge VAT on that this approach will not commend services, groups of small CSO’s need services provided by one civil society itself to many small CSO’s which to consider operating as subcontractors, organisation to another, even if they jealously guard their independence, or even as sub subcontractors, under a are members of the same consortium, believe small is beautiful, have no wish prime contractor, which itself may well and the TUPE provisions where the to grow significantly and instead prefer be a commercial company. actual employer may change. to focus on a specific service delivered to a specific geographical area or In parallel with this commissioning The Task Force has learned of several community of interest. In consequence process, many small CSO’s continue attempts to create these consortia. they will have to act as what can best to be financed by grants. These offer a It was encouraged by the model be described as a “local provider”. shorter and simpler “route to market” described by 3SC – a new type of but do not provide the longer term consortium, which is an attempt to The Local Provider commitments which enable small give a group of small CSO’s a seat at CSO’s to develop their organisations the commissioners “top table”. It is The Task Force has considered the with confidence. one of a number of initiatives and specific steps that could be taken all are at a relatively early stage. to provide a more level playing field Links with the Commercial Sector Another is the Big Society Cooperative on which small local providers can in Kent that allows charity, public compete. We welcome the Community The likely strains in any relationship and private sector groups to bid for Right to Challenge in the Localism between a commercial company and government contracts. Bill, which will enable voluntary and small CSO’s are obvious. Commercial The Task Force believes that these and community bodies to express an companies are, quite properly, interest in running a local authority motivated by the need to earn a other similar models appear worthy of support and development. service, where they believe they can return on their investment and as run it differently or better. such are conscious of their contractual We therefore recommend that: obligations. By contrast small CSO’s 1. The leading sector umbrella bodies may be as concerned about the impact (NCVO, ACEVO, SEC, Community of their work as with their contractual Matters …etc) should act as catalysts position. Many argue that this gives an in the creation of other small CSO added value to the activities of small consortia and develop support, CSO’s. The Task Force accepts this training and advice services for those view and believes that some agreed that wish to explore this path. methodologies for assessing this social return could usefully be devised.

21 What stops CSO’s growing? continued

In addition, the Task Force Bristol City Council Third Sector recommends that: Bristol City Council’s Compact with ‘I would welcome a secondment from • Commissioners should be the voluntary, community and social the third sector into my organisation encouraged to work more closely enterprise (CSO) sector commits the to drive forward more innovative with small CSO’s so as to fully Council to a ‘mixed economy’ which work.’ (Commissioning organisation understand their motivation and the includes commissioning, competitive response to a National Programme potential value they can add. This grant processes and direct grant-funding.” for Third Sector Commissioning means involving CSO’s from the The commitment includes: 2008 survey) earliest stages of commissioning: • Implementation of the Council’s ‘There should be secondments from the identification of needs and also the public sector to the third sector the availability of local resources; commissioning guidance including a comprehensive training programme for firsthand experience.’ (Civil a review of the part that small local society organisation response to providers could play (especially for elected members, service and commissioning managers, informed National Programme for Third Sector in light of the Government’s Commissioning 2008 survey) commitments to encourage small by a training needs analysis and enterprises and charities) and using includes peer support, based on the local, grounded knowledge of specialist commissioning expertise. CSO’s to develop a community The differing cultural approaches capacity map – rather than assuming of public and CSO’s are included solutions need to be brought in from in the programme. the outside. This should not just • Involvement of the CSO’s in all mean summoning the small CSO stages of the commissioning cycle. to a conference but a real effort to This means that the CSO’s will get “inside the skin” of the small be engaged at the start of and CSO, perhaps by some temporary throughout the commissioning staff secondment or at least “seeing process. In addition, potential service is believing” type visits. That would providers will be supported at the mean that commissioners would be later stages of the commissioning more understanding of the needs cycle so that they are able to of local organisations. For example, understand the process, timescales local commissioners should be and regulations, and engage to encouraged to give early warning of win contracts. procurement tenders to allow time for bidding consortia to form and to prepare. Secondments from local commissioners to the local voluntary sector could be complemented by secondments from CSO’s to local authorities, so that members and trustees can understand the reasons for requesting some sets of information.

22 • Commissioners should consider The 2008 National Programme Pre Qualification Questionnaires the added social, economic and environmental value of prospective The 2008 National Programme for The work involved in PQQs providers and should allow a range Third Sector Commissioning survey (Pre Qualification Questionnaires), of methodologies to demonstrate found that 87% of commissioners framework agreements and the like this. Enforcing specific, often complex, agreed that civil society understands has increased substantially recently models for measuring added value hard-to-reach clients. One central for some reason. They are often in far is likely to over-burden smaller government department said ‘The too much depth and with unnecessary organisations and be counter- third sector brings experience to the questions and required detail. A productive. Commissioners should table … a key benefit is the ability to recent continuing care framework consider the impact of the aggregation reach the ‘final 5%’ – the most difficult, agreement had almost 150 questions of services to form large contracts. hard-to-reach cases’. to answer and this was just to get on the list. I would also quote the EXOR • Commissioners should be encouraged • Commissioners should be accreditation system as an example to use grant-aid as a payment encouraged not to use open of excessive and unnecessary detail mechanism for services delivered competitive tendering as the default and expensive, as we have to pay for by small organisations which is free option for all services, especially it. In another example we completed from the legal risks and complexity where no real market exists. a complex framework agreement of contract law. Service specifications • The Task Force has seen the Merlin questionnaire just to be one of 46 or Service Level Agreements (SLA’s) commissioning approach, initially providers on the list, in our view a can be used as a means of clarifying devised by DWP and now being complete waste of time and effort the outcomes required. rolled out more widely. There is when it was clear only the cheapest much in this approach that will help would get any work. (Heritage Care) • Central and local government as smaller CSO’s and we therefore well as commissioners, should be support its further development ii. If further information is required, prepared to accept that there will and use in local as well as national it should be on a minimalist basis. be a rate of failure amongst CSO’s, commissioning. But at present, it Nothing is more destructive to the especially the smaller ones – these is too dependent on statements morale of small CSO’s than hours groups may well be taking on the of hope and expectation. The Task spent filling in forms only to be “edgier”, tougher problems posed Force therefore believes that, whilst refused the chance to tender. by our society. It will be the “vanilla it is still largely untested, it could Monitoring and evaluation flavour” issues that will particularly be revised to have greater impact in attract the commercial groups. relation to, inter alia, the following Monitoring and evaluation is Inevitably the more challenging the specific points: issue the greater the risk of failure. a constant burden on smaller Such failures should not be seen as i. Pre Qualification Questionnaires organisations as different government reducing the need to involve CSO’s. (PQQ’s) for smaller CSO’s should funders require different things. Due normally be dispensed with. The to limited capacity organisations Oliver Letwin commissioner/prime contractor experience difficulty in reporting should draw any information information as it is often time “We know we need to change that required from the accounts, consuming and organisations are culture and to enable our officials to Companies’ House/Charity already pressed in providing frontline take those risks and not be penalised Commission returns etc. services. To counteract this problem for them. It will require a major shift we recommend that funders jointly in the culture of Whitehall but it is one develop what is to be monitored with we are determined to achieve. We are the organisations and other funders. going to need a change in the way we We encourage the government to operate government itself.... promote the Compact requirements ...If we can achieve this even to some relating to monitoring and reporting degree, the extent to which we can and ensure that all funders fulfil unlock the potential of civil society is these commitments. (Women’s enormous.” (Oliver Letwin speaking Resource Centre) at the 2008 NCVO Annual Conference)

23 What stops CSO’s growing? continued

iii. The tender documents should be Voluntary Organisations vi. Monitoring processes (SLA’s etc) proportionate to the value of the must be fixed for the period of contract to be awarded. It has been Voluntary organisations are told we the contract. Small CSO’s primary suggested that the assessed cost of need to move from grant funding to focus is on impacts/outcomes tendering should be no more than contracting, but too often tenders are rather than process so, changing 2% of the value of the contract up written with onerous conditions, both the basis for measurement mid to £500,000 and 1% thereafter. in applying and in reporting, for quite contract, adds an unnecessary strain. small contracts. (I have a 68-page Worcestershire Hospice tender we had to complete, together Response to Minister for Civil Society with supporting documents, to provide A local hospice in Worcestershire out-of-school-hours activities for It should be more of a responsibility needed to agree a new service disabled children in one London of the commissioner to evaluate by contract with its local primary care borough for £10,000.) (Response exception and/or conducting their trust to replace its existing 25 page to Minister for Civil Society). own user evaluation. The current contract. The Department of Health reporting environment would appear has produced a new model contract, v. Commissioners should accept that to be related to the commissioners developed with sector organisations, small CSO’s must be able to make own need to ‘tick boxes’ from their that runs to 130 pages, accompanied a surplus. No organisation can run targets set by government. The need by 111 pages of guidance. However, permanently on a basis of breakeven for reporting on contract outcomes is it is intended to be used in simple tendering, particularly if it is seeking clearly needed, but the issue is in the modules so PCTs should use only the to grow – so “not for profit” is a level of detail demanded, including modules that apply to a particular misleading title. What this should sensitive, difficult to gather, equality agreement. In this instance the PCT mean is “not for profit distribution” monitoring. (Response to Minister simply handed the whole document (ie the small CSO can accumulate for Civil Society) to the charity on a “take it or leave reserves but these cannot be it” basis. This misinterpretation of its distributed). Therefore, a set of vii. The costs of monitoring the intention has led to the Department of benchmarks should be developed commissioning service need to be Health agreeing to review the contract giving reasonable mark-ups for proportionate to the value of the and guidance. prime contractors, relative to the contract. As a guideline, monitoring degree of risk and effort involved, in should cost no more than 4% of iv. Commissioners should consider order to discourage subcontracting the contract up to £500,000 and carefully the number of tenders at punitive rates. 2% thereafter. they seek - particularly for small contracts (those valued at below Solihull Sustain & Colebridge Trust £50,000). While they have a duty to ensure value for public money, Solihull Sustain & Colebridge Trust there can only be one winner. secured a grant to deliver a £200,000 If a commissioner decides that in project. Having secured some corporate order to avoid controversy he will social responsibility from a local hotel accept a large number of tenders, in providing a small meeting room free he is inevitably inflicting a degree of charge and a larger room at a heavily of economic inefficiency and discounted price, the Trust is predicting organisational friction on all an under spend of approximately the losers. £600. This efficiency saving will have to be returned to the funder, instead of being retained in reserves and allowing the organisations to build its sustainability. (Case study provided by NCVO)

24 Disability Essex Reporting requirements All government contracts should aim for statutory contracts to leave neighbourhoods socially In 2010 Disability Essex took on a stronger than they found them. Learning and Skills Council/Skills The reporting requirements for Funding Agency Community Grant statutory contracts are extremely 6 Kneejerk Regulatory Pressures – administered by Tribal Group – for burdensome and time consuming; pre-training of disabled adults. This not only for the administration side The pressure on ministers (of all was worth about £12,000 to cover of the charity, but for the front line political parties) to take action in the full project costs to train about 200 staff who have to keep meticulous aftermath of an accident are immense. disabled adults in basic IT skills. records to satisfy these requirements. To suggest that a period of reflection and examination of the facts might A prototype course run in 2006, of a This impedes on the time and resource available to deliver front line services, be the best way forward is to risk similar value, trained 250 individuals, appearing coldly unsympathetic to with a monitoring cost of less than which is supposed to be the purpose of the service(s) in the first place. those affected by a tragedy. But over £500, amounting to one side of A4 time the cumulative regulatory effect paper per student. We understand the need to protect public investment (being one of of responding to individual cases can The first quarterly claim for this course, the most tightly regulated sectors be considerable. in which 89 students were trained, of the economy – and obtaining The Task Force considered whether required 1.4kg of paperwork to be value for money) but there needs there was any way that ministers mailed, plus documentation sent to be a much greater emphasis on could be assisted in these very difficult via email. allowing the contracted organisation circumstances. We believe that it For the 89 students, Tribal required to deliver services to the end user would be worth considering the that all course paperwork be submitted within the terms of the contract (and establishment of a mechanism within in hard copy to release the relevant for the commissioner to require the the Better Regulation Executive to payment. This amounted to 4,500 contracted organisation to confirm address this problem. We have called A4 sheets of paper for 8 hours each that they have so delivered). (Response it STORE – Standing for Speedy of training – in practice, the tutor to Minister for Civil Society) Treatment of Regulatory Events. spent about two hours per student in viii. Clarification that part of the role A minister facing short term pressure producing this evidence (rather than to introduce new regulations would teaching IT skills). of prime contractors, they should be prepared to absorb higher be able to refer the case to STORE. As a result of the situation, Disability degrees of the risk, complexity A STORE panel would then be set Essex ended their involvement in and administrative burden up, made up, in part, of experts in the the project. associated with contracts in order particular field but with a majority of to attract smaller CSO’s to their ordinary members of the public, some supply chain. This may mean of whom might be from the region in using different procedures with which those affected by the tragedy their sub-contractors in areas lived. The Task Force noted a decline such as the payment model, in public confidence in determinations security checking, monitoring reached solely by “experts”. and reporting procedures and The STORE Committee’s purpose plain English documents. would be to produce, over a few ix. Prime contractors should be required weeks, a report which would indicate formally to consider the impact whether the event revealed a of their contracts on the systemic defect, which could require neighbourhoods in which they are a regulatory response, or the unhappy delivered. Particular consideration consequences of a random event. should be given to the impact on community venues, existing informal provision, local social capital, local volunteers, access and travel requirements of users, integration of provision and the role of communities in evaluating services with a view to strengthening these where possible.

25 What stops CSO’s growing? continued

7 Planning Areas for further study 2 VAT

While it has not been perceived as 1 Future Regulatory Structure Evidence received by the Task Force a major burden, the Task Force has showed how the complexity and “hard received a number of representations In recent years a large number of edges” of VAT regulations has had a from small CSO’s that local authority voluntary groups have been set up to considerable impact on small CSO’s. planning officers are being overly carry out “public benefit” type activities. bureaucratic in their interpretation This has created a layer of complexity. This was not just the result of the of planning regulations. In the small CSO “space” there are requirement to charge VAT on services now. provided by one small CSO to another. Many CSO’s have buildings which Planning Portal Problems • Charitable trusts require updating but VAT is chargeable A south London community centre that • Companies limited by shares on renovation to existing buildings but installed a metal sculpture by a local • Companies limited by guarantee not on new build. artist in its garden, was informed by a local planning officer, who happened • Community interest companies Ringer Village Hall to see it, that because it was higher • Unincorporated associations than the centre’s boundary fence it Ringmer Village Hall’s extension was required planning permission. This • Industrial and provident societies more expensive because it was liable cost the organisation, which is a hub for VAT. As the Town and Country Shortly to be joined by of its local community, both time and Survey was told, if the extension money and also created work for the • Charitable incorporated had been built a foot away from the local authority. The centre’s error was organisations. existing hall, it would have been a new building and there would have been understandable because the ‘planning Each of these faces slightly different no VAT liability. portal’ of the relevant London borough’s regulatory requirements including website gives no indication that such restrictions on their ability to raise Finally, where a consortium of smaller permission is needed for sculptures and distribute funds and capital. on private property. CSO’s has successfully bid for work, As noted, the strength of the CSO the lead CSO will have to charge The Task Force recommends that sector has been its diversity and its VAT on payments to its fellow planning officers should be pragmatic flexibility, which has given rise to such consortium members. in cases such as this, where CSO’s are a rich pattern of public involvement. involved, and no significant breach of But it has been put to the Task Force planning regulations has occurred. that the complexities are beginning to outweigh the advantages and that, in consequence, consideration should be given to redrawing the regulatory framework to regulate by function, not by the accident of corporate form. This proposal lies well beyond the remit of the Task Force. Nevertheless we regard it as an issue on which public debate should be encouraged.

26 3 TUPE As part of this process we contacted Recommendations for this section the scheme administrator for the The preservation of employment LGPS Admitted Body arrangement • Regulatory duplication, particularly rights, especially pension rights, is an to advise them and they eventually between Companies House and issue which raises a high degree of confirmed that providing everyone the Charity Commission, should political controversy. Nowhere is this transferred back to the LA (local be eliminated. controversy fiercer then when central authority) there would be no liability • Consideration should be given or local government employees for underfunding for us to pay. to amending the law to give are involved. However within days, it became limited liability to the trustees It is not part of the Task Force’s remit to apparent that the LA concerned of unincorporated charities. comment on the politics of this issue. had changed their commissioning • The review of the Charities Act However, we were told that the on cost intentions. The employees are likely should consider ways to make it to a CSO of taking on an employee of to be redundant and this has a easier for charities with permanent central or local government on existing significant financial impact for us as, endowment whose original terms would amount to about 30-40% not only do we now have to cover purposes have become obsolete of salary. It seems unlikely that many their redundancy payments, but we to recycle their assets to other CSO’s will be able to justify developing also need to cover the redundancy charitable purposes. in this way. related pension benefits and also face the prospect of a £131k bill for • An effective replacement for cheques TUPE the underfunded future liabilities needs to be to be found before they within the scheme for the members are withdrawn. In 2010 we took a relatively small that are now redundant. Needless • Civil society umbrella organisations service from a local authority and to say we now have to consider should assist smaller CSO’s to form attached to that contract was a small whether the costs incurred in closing consortia to bid for public work. cohort of 20 employees, who transferred down membership of this admission to us under TUPE. Along with this • Pre Qualification Questionnaires agreement outweigh the costs of came their membership of the LGPS (PQQ’s) should normally be continuing to run a service for the LA (Local Government Pension Scheme) dispensed with. that is underfunded and not financially which we accepted under an admission sustainable in any other circumstances. • Commissioners should recognise agreement, albeit with high employer (Avenues Group) the special contribution of smaller pension contributions than we would CSO’s. A standard proportionate normally pay under our standard GPP method for bidding for contracts scheme. We were required to provide a and for their subsequent monitoring bond against insolvency to the scheme should be devised. administrators for £80k, which costs us an annual premium of £5k to purchase. • A means of determining whether accidents are the result of systemic For reasons that I won’t go into failure or chance should be established. in detail, suffice it to say that they were not of our making, the contract became unsustainable for us to continue to deliver and therefore we gave notice on the contract and intended to withdraw from providing the service. Our expectation was that the employees would transfer to a new provider or back to the local authority from whence they had come originally.

27 Appendix A Things you can do in your community

There seems to be a focus on reasons why something cannot be done. To balance this, we present a list of things you can do, using your common sense, to help improve your community. In doing so, we hope to help shatter a few myths.

1 Put a plaster on a child’s cut20 2 Develop a community organisation or social enterprise using easily available guidance without needing a health and safety adviser21 3 Operate a safe working environment without requiring annual PAT tests22 4 Put up hanging baskets23 5 Hold a pancake race24 6 Develop exciting and challenging playgrounds25 7 Use bunting or flags at events26 8 Support a voluntary organisation that works with children and vulnerable adults without a CRB check unless you have “frequent and intensive” contact with them27 9 Clear snow from the footpath28

28 10 Offer to become a trustee of a local charity 11 Hold local fundraising events for good causes 12 Support your community and gain skills if you are on benefits29 13 Help with teaching reading at school 14 Help at school sports day 15 Play conkers without wearing goggles30 16 Wear goggles in swimming lessons31 17 Take photographs of your children at a school play32 18 Use your business skills to support a local organisation 19 Organise a village fete33 20 Offer meeting space in your offices to a local community group

20www.hse.gov.uk/myth/jun08.htm 21 www.hse.gov.uk/myth/oct10.htm www.businesslink.gov.uk 22www.hse.gov.uk/myth/july.htm 23www.hse.gov.uk/myth/apr08.htm 24www.hse.gov.uk/myth/feb09.htm 25www.hse.gov.uk/myth/mar09.htm 26www.hse.gov.uk/myth/aug10.htm 27www.crb.homeoffice.gov.uk/using_the_website/general_information.aspx#whyapply 28www.direct.gov.uk/en/Nl1/Newsroom/DG_191868 29www.direct.gov.uk/en/HomeAndCommunity/Gettinginvolvedinyourcommunity/Volunteering/DG_064299 30www.hse.gov.uk/myth/september.htm 31www.swimming.org/assets/uploads/library/Use_of_swimming_goggles.pdf 32www.ico.gov.uk 33www.hse.gov.uk/myth/jul09.htm 29 Appendix B

Licences, permissions and registrations

This is a list of known licences, permissions and Performance and Events registrations required by community groups and/or (inc dancing, plays or indoor sporting events) community premises. There will also be a need to register for provision of some specialist services. • Licensing Act (may be licensable by local licensing authority) Supply of Alcohol • Permission from Council for events on public land • Licensing Act (community premises may be licensable • Temporary Traffic Regulation Order (from Council for by local licensing authority and in some circumstances closing {parts of} streets or for parades) – may require may require an appeal to Magistrates Court) – Premises petition from neighbours Licences, Club Premises Certificates and Temporary Events Notices apply

Playing Music

• Licensing Act (may be licensable by local licensing authority) • Performing Rights Society (PRS) licence if using copyrighted music • Phonographic Performance Licence (PPL) if playing recorded music

30 Showing Film or Video Food • Licensing Act (public screening may be licensable by local • Licensable if hot food/drink being provided between licensing authority) 11pm and 5am • Motion Picture umbrella licence (from MPLC) • Food hygiene registration with local authority for any site • Public Video Screening Licence (from Filmbank) where food is prepared • Video Performance Licence for music videos (VPL) • Street trading consent from local authority may be • PRS Licence required • PPL Licence • Seller may have to register as a food business with local authority • Television Licence (if shown on a television) • Wedding Video Recording Licence (from wvrl.co.uk) Street Collection • Filming Licence (from TFL if filming tubes, busses or • Street collection permit from local authority if fundraising station areas) in public areas – will involve police checks

Other premises related

Other Copyright • Registration with Ofsted to run crèches or child-care • Copyright licence (from CLA) for copying printed services material, designs, websites etc • Licence to hold civil weddings and civil partnerships – also requires Certificate of Approval scheme and Raffles/Lotteries Immigration Regulations requirements • Licensing Act (may be licensable if, for example, tickets • Lease or licence for occupation sold in advance or if prizes include alcohol) Transport • Registration with local council if ‘small society lottery’ • Registration with Gambling Commission if ‘large society • Driving and vehicle licences lottery’

Playing Bingo and Other Gaming

• Licensing Act (may be licensable by local licensing authority) • Bingo operating licence for high stakes bingo or some other circumstances (highly complex rules) • Personal Management Licence (for some individuals in some circumstances) • Gaming machine permit

31 Appendix C

Terms of reference for the Civil Society Red Tape Task Force

Background Task Force structure and support

The Government is committed to reduce the amount of The Task Force shall comprise a chair and not more than regulation, monitoring and reporting that is imposed on five other members who will jointly have knowledge and charities, social enterprises and voluntary organisations. experience of the civil society, small business and social To help achieve this, the Government has established a joint enterprise sectors. Cabinet Office and Department for Business, Innovation The Task Force will be able to interview key members of the and Skills Civil Society Red Tape Task Force. civil society and small business sectors and its research and other preparation work will be supported by officials from Aim of the Task Force OCS and BIS. The Task Force is to answer the question: “How can we The Task Force will be supported by officials from OCS and reduce the bureaucratic burden on small organisations, BIS who will be supervised by a project steering group that particularly in the charitable, voluntary and social will comprise: enterprise sectors?” • Helen Stephenson, the Deputy Director with overall The Task Force will consider the full range of burdens responsibility for cutting red tape in OCS and Zoë Dayan, that fall on small civil society organisations and make the Director of the Domestic Affairs and Public Service recommendations about how it should be reduced, Team in the Better Regulation Executive, BIS; including changes to legislation that are needed. The particular areas it will cover will include: • other designated officials in OCS and BIS that will provide research and secretariat support. • Health and safety; The project will be sponsored by the Director General of the • Employment law; Office for Civil Society and the Chief Executive of the Better • Contractual arrangements when civil society organisations Regulation Executive, who will meet at least bi-monthly. provide public services; Task Force mode of operation • Responsibilities of trustees and volunteers; • Data protection; The Task Force will meet monthly or more frequently if it considers that this is necessary. Initially it will concentrate • Coordination between Government departments on scoping the regulatory burden on civil society and regulators; organisations and will identify the areas where it will • Other issues of concern to the charitable and voluntary concentrate its work in September 2010. Its future work sector. programme will be decided when its scoping work is complete. It will also consider: August 2010 • the Gift Aid Forum report to HM Treasury Ministers and the ResPublica report on Gift Aid. • and feed into the work led by the Home Office on the criminal records and vetting and barring regime.

32 Appendix D

The Task Force members

The Task Force’s membership is:

• Lord Hodgson, who is currently President of NCVO and as Shadow Minister in the House of Lords, led for the Conservative Party on the proceedings of the Charities Act 2006 • Lynne Berry, Chief Executive, WRVS • Andrew Hind, former Chief Executive of the Charity Commission and Editor of Charity Finance magazine • Sir Graham Melmoth, former Chair of NCVO and former Chief Executive of the Co-operative Group • David Thompson, Chair of Marstons PLC and • David Tyler, Chief Executive, Community Matters.

It is supported by a secretariat comprising officials from the Better Regulation Executive in the Department for Business, Innovation and Skills, the Office for Civil Society in the Cabinet Office and Department for Communities and Local Government.

33 Appendix E

List of stakeholder contributors

The Task Force has gathered evidence 3SC in a number of ways: Action for Children • The “Town and Country” survey of village halls and community centres run jointly by Action for ACRE Communities in Rural England (ACRE), the Cabinet Office, Community Matters and the Department for Addaction Business, Innovation and Skills. Adur Voluntary Action • An article by Nick Hurd, the Minister for Civil Society, on the Directory of Social Change website asking for Advocare – Caring for Carers contributions. Age Concern Bucks • A letter from Nick Hurd to all MPs asking for examples of red tape from their constituents. Age Concern North Dorset • A letter from Nick Hurd to the Strategic Partners of the Age UK Norfolk Office for Civil Society in the Cabinet Office asking for contributions. Ahoy Centre The • Witnesses who have met with the Task Force, or its Alice Barker Trust individual members or secretariat Association for Real Change • Task Force members and secretariat meetings with relevant groups for discussion. Association of British Insurers Association of Charitable Foundations

Avenues Group

Baca

Paul Baggaley

Balham Community Centre

Barnabas House

Barton Rail Line User Group

Bates, Wells and Braithwaite, Solicitors

Beacon Centre for the Blind

Sue Belcher

Beth Johnson Foundation

Better Regulation Executive

Jane Bewell

Big Lottery Fund

John Biggs

Bletchingley Village Hall

Catherine Boothman

34 Bovey Tracey Youth Café Community Development Foundation

Bradford Council for Voluntary Service Community Matters

Branscombe Village Hall Community Sector Law Monitoring Group

Breakthrough Community Service Volunteers

Bredon Community Play and Recreation Conwy Town Council

Brighter Futures for older people Robin Coombes

British Red Cross Derek Cotton

Britwell Youth Project Country Channel TV

Bucknell Women’s Institute Craig-y-Don Sports and Community Centre

Building Bridges in Burnley Cumbria Youth Alliance

Jane Burrell Roz Cuschieri

Buzzacott Grantmaking Services Dacorum Community Trust

Cabinet Office Daildruglink

Campaign for Adventure Penny Dane

CAN Mezzanine Peter Day

Pam Cantle Defra Advisory Body

Capel Curig Community Centre Diversity InCare Limited

Capita Symonds Dorchester Strollers

Carnegie UK Downland Volunteer Group

Cavernoma Alliance Elsecar Heritage Railway

Celynen Collieries Institute and Memorial Hall Newbridge Enfield Parents and Children

Centre for Europe Enfys Foundation

Charities Aid Foundation Evergreen Care Trust

Charity Trustee Networks Fair Shares

Christian Stewardship, Church of England Farm Crisis Network

Clervaux Trust Firs Education Limited

Cloverleaf advocacy Jane Freeman

Colchester and Tendring Women’s Refuge Friends of Mental Health (West Kent and Medway)

Combating Obesity Limited Friendship Zone

Community Buildings Group Fundraising Standards Board

35 Appendix E continued

Furniture Now! Inner Wheel

Eric Galvin Institute of Chartered Accountants of Scotland

Anil Ghelani ACIEH Institute of Fundraising

Phil Goulding Julia’s House Dorset Childrens Hospice

Jane Grant Kaiser Trust

Greenham Common Trust Kilburn Neighbours

Greenhouse Kintbury Village Hall

Hafod Youth Action Group Knowsley Chamber of Commerce

Georgiana Haig Lancashire Association of Clubs for Young People

Harrogate Community Transport Betty Last

Harrogate Hospital and Community Friends Leighton Buzzard Railway

Hastings and Rother YMCA Letchworth Garden City Heritage Foundation

Hastings Furniture Service Life Project CIC The

Hazel Grove Musical Festival Lions Clubs International

Headway East London Living Room, Stevenage

Health and Safety Executive Llandudno and District Credit Union Limited

Peter Hebard Llandudno St John Division

Louise Heinemann Llandudno Youth Music Theatre

Helen and Douglas House Macmillan Cancer Support

Her Centre Mansfield Play Forum

Heritage Care Marie Curie Cancer Care

Hertfordshire Hearing Advisory Service Marine Support & Training Service

Alexandra Hess Mellor Archaeological Trust

Holborn Community Association Mentoring and Befriending Foundation

Jack Holt Merseyside Play Action Council

Home Home-Start Crawley, Horsham and Mid-Sussex Migrants Resource Centre

Home-Start North East Worcestershire Jay Mitton

Home-Start UK My Life My Choice

Indestructible Paint Limited National Council For Voluntary Youth Services

INDIGO Foundation (Norfolk) Limited National Housing Federation

36 National Society for Epilepsy Andrew Robathan

National Youth Agency Rossendale Citizens Advice Bureau

National Youth Orchestra Royal Association for Deaf People

NAVCA Royal National Institute for the Blind

NCVO Sainsbury Foundations

New Literacy Salters Hill Charity Limited

Newton Price Centre School for Social Entrepreneurs

James Nixon Scottish Seabird Centre

Ben Nobbs Oliver Sells QC

Melanie Nock Serco

North of England Activities and Training Shebbear Shooters and Shebbear Bowling Club

Northern Legacy community Interest Company Shropshire Wildlife Trust

Ofsted Sittingbourne Corps, Salvation Army

Open Door Exmouth Sittingbourne Corps, Salvation Army

Optical Confederation Slough Refugee Support

Jo Owen Doug Smith

Oxford Youth Peter Smith

Oxfordshire Nature Conservation Forum Social Enterprise Coalition

Colin M Parker South Mircham Community Association

Stuart Parkin South Tynedale Railway Preservation Society

Plunkett Foundation Southend Association of Voluntary Services

Princess Royal Trust Carers Centre, Bristol and South Speen, Shaw and Donnington Neighbourhood Action Gloucestershire Group

Prism Arts Phoebe Spence

Francesca Quint Sport and Recreation Alliance

Rally Strategic Spx Leisure Limited

The Rathbone Centre St Cecilia Orchestra

The Rt Hon John Redwood MP St Paul’s Crossover Centre

Revive MS Support St Richard’s Hospice, Worcester

Ringmer Village Hall St Thomas’ Church Parochial Church Council, Stockport

37 Appendix E continued

Stafford Works West Bromwich African Caribbean Resource Centre

Stechford Youth Network West Lancs Peer Support Group

Stewardship Weymouth Community Volunteers

Sue Ryder Care Wigan and Leigh Council for Voluntary Service

Survivors’ Poetry Wilderwoods Forest School

Sussex BME Partnership Willow Tree Management

Sutton Council for Voluntary Service Fred Wilson

Tameside Third Sector Coalition Brian Winder

Teso Development Trust Wirral Information Resource for Equality and Disability

Third Sector European Network Limited Wolds Learning Network

George Thomas Women’s Resource Centre

Timebank Working with Men

Tiphereth Limited WPF Therapy

Torbay Street Pastors Zurich Municipal Insurance

Tribunals Service

TRIP CTA

UnLtd

Upper Niderdale Scout Group

Vacation Chamber Orchestras

Doctor Geoffrey Vevers

VINE for PAT Charity

Voice 4 Change

Voluntary Action Islington

Voluntary Sector North West

Volunteering England

Daniel Vulliamy

Sarah Ward

West Ashton Village Hall

West Berks Indoor Bowls Club

West Berkshire Hackney and Private Hire Association

38 Appendix F

The coalition government’s principles of regulation

General Principles Operating Principles

1. The Government will regulate to achieve its policy 1. There will be a general presumption that regulation objectives only: should not impose costs and obligations on business, a) having demonstrated that satisfactory outcomes cannot social enterprises, individuals and community groups be achieved by alternative, self regulatory, or non- unless a robust and compelling case has been made. regulatory approaches; and 2. The Government will adopt a ‘One In One Out’ approach b) where analysis of the costs and benefits demonstrates 3. Before bringing forward any proposal to introduce a new that the regulatory approach is superior by a clear regulation, Departments will need to satisfy BRE / sub- margin to alternative, self-regulatory or non-regulatory committee secretariat that it passes one of two tests: approaches; and a) That no suitable alternative, non-regulatory or self- c) where the regulation and the enforcement framework regulatory means of achieving the same outcome exists; can be implemented in a fashion which is demonstrably b) That the measure either reduces the burden of regulation proportionate; accountable; consistent; transparent or is deregulatory. and targeted. 4. When reviewing regulatory proposals the sub-committee will ask the following: a) Is it necessary for the Government to act? b) Does the proposed approach harness the insights of behavioural economics in order to achieve outcomes in minimally burdensome ways? c) Even if there is a clear case for regulation, is this a sufficiently high priority bearing in mind other new burdens being imposed by the Government’s other regulatory priorities? d) Is the proposed regulation a necessary and proportionate response to the policy issue, does it comply with the other principles of good regulation and are the proposed enforcement arrangements credible and affordable? e) Have the costs and benefits, and the impacts on small firms, public and third sector organisations, individuals and community groups been robustly identified and reflected in the choice of options? (The opinions of the external scrutiny body will be considered.) f) Where SMEs are to be included within the scope of the regulations, has a compelling case been made for their inclusion? g) Where the proposed regulation implements EU obligations, is the proposed regulation the least burdensome way in which to implement them? h) Have the necessary burden reductions required by One-in, One-out been identified and are they robust? (The opinions of the external scrutiny body will be considered).

39