Charity law reform – England and Wales

In previous editions, we have reported on the reforms set out in the Charities Act 2022 that have come into effect. In accordance with the implementation plan for the Charities Act 2022, we have been expecting to see sections 15 and 16:ex gratia payments to come into force.

The key recommendations made in the 2017 Law Commission’s report in respect of ex gratia payments included:

• To allow charity trustees to delegate the decision to apply to the Charity Commission to authorise an ex gratia payment.
• To enable charities to have power to make smaller payments without Charity Commission approval.

Note: The above changes apply equally to statutory charities as they do to other charities.

The reason for the delay in the implementation of these sections is due to the final recommendation which had created some controversy in respect to national museums and galleries. At the beginning of the year, the Minister of Arts and Heritage wrote to the Charity Commission to reaffirm that national museums and galleries will continue to follow their governing legislation, specifically excluding them from sections 15 and 16 of the Charities Act 2022.

This means that these institutions cannot independently authorise ex gratia payments or repatriate artefacts without oversight. For other charities, the ability to make ex gratia payments will only apply if the recipient is based in the UK, preventing international repatriations without Charity Commission involvement.

Guidance: https://bit.ly/3YCyptg

Guidance: https://bit.ly/40kiUHQ