Charities are being “stifled by a contract culture” and face threats from government to restrict their advocacy work, according to the House of Lords Select Committee on Charities.

The Committee’s report Stronger Charities for a Stronger Society, which follows their investigation into challenges facing the sector, has praised charities for being “the eyes and ears and conscience of society” but is critical of their treatment by government, in particularly around lobbying and public service delivery.

They were particularly concerned by last year’s attempt by the government to “inhibit” charities’ advocacy role through the introduction of a “restrictive” anti-advocacy clause into public sector grant agreements, which was later scrapped.

The 2014 Transparency in Lobbying, Non-Party Campaigning and Trade Union Administration Act, which places restrictions on campaigning around elections, also comes under fire in the 156-page report.

Among its 100 conclusions and recommendations is the Lords backing “in full” for proposals made by Lord Hodgson in his Third Party Campaigning Review of last year to ensure this Act does not restrict charities’ legitimate advocacy work.

Ministers also need to do more to engage with the charity sector around future regulations and guidance, says the report.

“Poor consultation and ill-thought-through policy proposals have caused serious unease and disruption to the work of charities. We recommend that the Government reviews its approach to engagement with the charity sector before policy announcements are made, with a view to ensuring that charities feel better informed about legal changes which may affect them and have a greater opportunity to provide input on new policies,” the report adds.

Public sector contracting is also harming charities’ ability to innovate and the Lords’ report calls for commissioning to focus more on grants “to test new ideas and by avoiding overly prescriptive contractual stipulations”.

This was particularly important for smaller charities, says the report.
Committee chair Baroness Pitkeathley said: “Charities are the lifeblood of society. They play a fundamental role in our civil life and do so despite facing a multitude of challenges. Yet for them to continue to flourish, it is clear that they must be supported and promoted.

“We found that charities lead the way with innovation, but that this is at risk of being stifled by the ‘contract culture’. And while advocacy is a sign of a healthy democracy, and is a central part of charities’ role, this role has been threatened by Government. 

“We hope that charities will be encouraged by this report; that the Government will respect their role; and that in addition it will value the connections charities have with all sections of society, and encourage the vital scrutiny they provide.”

Other recommendations include improving trustee skills and training, including the appointment of “digital trustees” on boards to boost innovation around new technology.

The Public Relations and Communications Association Charities Group, which represents not for profit sector communicators, is among those to welcome the report’s findings, in particular around lobbying.

“If the recommendations are implemented it will be a turning point in the way charities behave and the implications for communications and PR staff working in the sector are significant,” said the group’s co-chair Simon Francis.

ACEVO chief executive Vicky Browning described the report as “comprehensive and progressive”.

She backed the Lords’ recommendations for “a robust defence of the role of charities in campaigning and a call for better engagement between government and the charity sector”.

A spokesperson for the Department of Culture, Media and Sport said “Charities play a vital role in society and the government has a range of policies and programmes in place to support them. We will consider the report’s recommendations and will respond in due course.”

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