The Charity Commission: regulator, enabler, or underfunded for both?
The Charity Commission oversees 170,000+ charities on a budget of ~£32m. Is it too heavy-handed, too light-touch, or simply under-resourced for the scale of the register?
The debate in brief
The Charity Commission for England and Wales occupies one of the most difficult positions in public regulation. It oversees 170,862 registered charities managing over £102 billion in annual income, with a staff of 457 and a budget of £32 million. It is expected to protect the public from abuse of charitable status, maintain the register, support trustees in running their charities well, and promote public trust -- all while treading a line between being accused of heavy-handedness by charities that feel over-policed and light-touch complacency by critics who want tougher enforcement.
The question is not really whether the Commission gets the balance right. It is whether the balance is achievable on the resources it has.
Quick takeaways
| Question | Short answer |
|---|---|
| Is the Charity Commission a regulator or an enabler? | Both. Its statutory objectives include both protecting the public and promoting compliance, but its capacity to do either is constrained by funding. |
| Is it underfunded? | Yes, by most analyses. The NAO, the sector, and the Commission itself have acknowledged that its budget has not kept pace with the scale or complexity of the register. |
| Has it been too heavy-handed? | Under William Shawcross (2012-2018), critics accused it of disproportionately targeting Muslim charities and overstepping into political territory. Under Orlando Fraser KC (2022-2025), the tone shifted toward fairness and proportionality. |
| Has it been too light-touch? | The NAO's 2013 report found the Commission suspended only two trustees and removed none in 2012-13. Enforcement has increased substantially since, but proactive identification of risk remains limited. |
| What changed with the Charities Act 2022? | The Act modernised trustee powers, simplified land transactions, and expanded automatic disqualification rules, but did not fundamentally alter the Commission's enforcement capacity. |
| Who chairs the Commission now? | Dame Julia Unwin took over as chair on 1 January 2026, succeeding Orlando Fraser KC via an interim period under Mark Simms OBE. |
The arguments
The case that the Commission is too interventionist
During William Shawcross's chairmanship (2012-2018), parts of the sector accused the Commission of overreach. A 2014 Guardian investigation found that more than 20 of the Commission's 76 live investigations were focused on Muslim charities, prompting accusations of disproportionate targeting. Shawcross's previous association with the Henry Jackson Society and public statements about Islam fuelled distrust.
More broadly, charities -- particularly smaller ones -- experience the Commission's compliance requirements as burdensome relative to their capacity. The NCVO has raised concerns about statutory inquiries taking an average of 446 days to conclude, noting the serious impact of prolonged investigations on both public confidence and the charities involved.
The case that the Commission is too passive
The opposing critique is that the Commission has historically lacked the resources or the will to act decisively. The NAO's landmark 2013 report found the Commission "does not do enough to identify and tackle abuse of charitable status," relied too heavily on trustees' self-reporting, made "little use of its enforcement powers," and was "reactive rather than proactive" in identifying risk. Between 2007-08 and 2013-14, the Commission's budget had fallen 40% in real terms to £22.7 million while the register remained at around 160,000 charities.
Enforcement has improved since -- the Commission opened 112 new statutory inquiries in 2024-25, up from 89 the previous year. But with fewer than 500 staff overseeing 170,000+ charities, there is no capacity for systematic proactive inspection. The Commission relies on self-reporting and reactive response to complaints. Charities that do not report problems -- as the Oxfam Haiti case demonstrated -- can avoid scrutiny for years.
The resourcing question that underpins both critiques
Many of the tensions between "too heavy" and "too light" dissolve when you examine the budget. At £32 million in 2024-25, the Commission's funding works out to less than £190 per registered charity. By comparison, the Financial Conduct Authority regulated around 50,000 firms with a budget of £755 million in 2024-25. The Charity Commission is not merely underfunded in absolute terms -- it is funded at a level that makes comprehensive regulation structurally impossible.
The 2025 Spending Review offered partial relief, increasing the Commission's budget by over 27% to £37.9 million for 2026-27. But planned reductions to £34.4 million by 2028-29 suggest a one-off investment rather than a permanent step change.
The evidence
The Charity Commission's 2024-25 annual report provides the clearest snapshot: 170,862 charities on the register, £102 billion in regulated charity income, 920,000 registered trustees, a 9% increase in registration applications, and a compliance filing rate of 92% (up from 81% the previous year). The Commission's revenue budget was £32.1 million with 457 staff.
The NAO's 2013 report remains the most significant external assessment. It found the Commission suspended only two trustees and removed none in 2012-13, assessed risk poorly, and was slow to act on concerns. A 2015 NAO follow-up acknowledged progress but noted the Commission still had not identified what budget it would need to regulate effectively. Treasury subsequently approved up to £8 million in investment funding, acknowledging the Commission had been underfunded.
The Charity Commission's public trust research (conducted annually by BMG Research) shows trust in charities at 6.5 out of 10 in 2025, making charities the second most trusted group in society after doctors. Awareness of the Commission itself stands at 49%, and the research consistently finds that regulation is important to people's trust -- the public wants charities regulated, even if the sector sometimes resists the detail of how.
Current context
The Commission is in transition. Dame Julia Unwin, former chief executive of the Joseph Rowntree Foundation, took over as chair on 1 January 2026, succeeding Orlando Fraser KC, whose three-year term ended in April 2025. Fraser's tenure was broadly welcomed by the sector after the more divisive Shawcross years -- he defended charities' right to campaign, pledged the Commission would not be "weaponised in polarised debates," and oversaw the implementation of most Charities Act 2022 provisions.
The Charities Act 2022, now nearly fully in force, modernised charity law -- simplifying governing document amendments, expanding trustee powers over permanent endowment, and broadening automatic disqualification rules -- but it was a simplification exercise, not an enforcement one. The Commission's fundamental challenge remains: rising demand, a growing register, and a budget that supports fewer than 500 staff. Its 2024-29 strategy emphasises digital modernisation, but whether technology can substitute for headcount in a regulator that deals with governance failures and safeguarding concerns remains to be seen.
Last updated: April 2026
What this means for charities
The practical implication of an under-resourced regulator is that charities bear more responsibility for their own governance. The Commission cannot proactively inspect most charities, which means trustees must self-regulate in the truest sense: maintaining proper financial controls, reporting serious incidents promptly, and holding their own organisations to account without waiting for the regulator to knock.
Charities should not mistake the Commission's limited capacity for indifference. The rise in statutory inquiries -- 112 opened in 2024-25 -- signals a regulator using its powers more assertively, and the Charities Act 2022's expanded disqualification rules mean consequences for individual trustees are more severe than a decade ago.
For boards, the minimum is clear: file annual returns on time, report serious incidents, maintain a conflicts of interest policy, and ensure financial controls are not dependent on any single individual.
Common questions
What does the Charity Commission actually do?
It registers new charities, maintains the public register, provides guidance to trustees, investigates concerns, and uses enforcement powers (including statutory inquiries, trustee suspension and removal) where it identifies serious failures. It is a non-ministerial government department, independent of direct ministerial control.
How is the Charity Commission funded?
Almost entirely by HM Treasury grant-in-aid. Its 2024-25 revenue budget was £32.1 million. Unlike the Financial Conduct Authority or the Fundraising Regulator, it does not charge the organisations it regulates. The Spending Review 2025 increased the budget to £37.9 million for 2026-27, though it is set to fall back in subsequent years.
Does the Charity Commission regulate all UK charities?
No. It covers England and Wales only. Scotland has the Office of the Scottish Charity Regulator (OSCR) and Northern Ireland has the Charity Commission for Northern Ireland.
Can the Charity Commission close a charity?
Not directly. It can suspend or remove trustees, freeze bank accounts, appoint interim managers, and direct specific actions. These powers can lead to a charity being wound up, but there is no simple "shut down" power. It can remove a charity from the register if it is no longer operating.
Was the Charity Commission biased under William Shawcross?
The accusation was made by parts of the sector, particularly Muslim charities. A 2014 Guardian investigation found more than a quarter of the Commission's live investigations were focused on Muslim charities, and Shawcross's personal statements about Islam were cited as evidence of institutional bias. The Commission denied targeting any group. The debate has receded under subsequent chairs but remains part of the institutional history.
What did the Charities Act 2022 change?
Implemented in stages through to March 2024, the Act simplified governing document amendments, gave the Commission power to ratify incorrectly appointed trustees, expanded permanent endowment rules, broadened automatic disqualification criteria, and modernised land disposal requirements. It was a simplifying measure rather than a fundamental reform of regulatory powers.
Key sources and further reading
Charity Commission annual report and accounts 2024 to 2025 -- Charity Commission, 2025. The most recent annual report, including data on the register size, budget, staffing, and enforcement activity.
The regulatory effectiveness of the Charity Commission -- National Audit Office, December 2013. The landmark report that found the Commission was "not regulating charities effectively" and made poor use of its enforcement powers.
Follow-up on the Charity Commission -- National Audit Office, January 2015. Acknowledged progress since the 2013 report while noting the Commission had not identified its required budget.
Public trust in charities 2025 -- Charity Commission / BMG Research, 2025. The most recent public trust survey, showing trust at 6.5 out of 10 and charities as the second most trusted group in society.
Charities Act 2022: guidance for charities -- Charity Commission, updated 2024. The Commission's own guidance on how the Act's provisions affect charities in practice.
Spending Review 2025: key changes for charities -- NCVO, 2025. Analysis of the Spending Review settlement including the Commission's budget increase and its implications.
Charity law and regulation -- House of Commons Library, Research Briefing CBP-10415, updated regularly. A comprehensive overview of the legal and regulatory framework for charities in England and Wales.
Building trust through fairness, balance and independence -- Orlando Fraser KC, Annual Public Meeting speech, November 2024. Fraser's final speech as chair, setting out his philosophy of proportionate regulation and defending charities' right to campaign.
Charity Commission 2024-29 strategy -- Charity Commission. The current strategic plan, emphasising proportionate regulation, digital modernisation, and proactive risk identification.