Westminster Policy News & Legislative Analysis

Government to extend Charity Commission powers on extremism

The Government has set out plans to strengthen the Charity Commission’s enforcement response to extremist abuse of charitable status. In a press release published on 9 March 2026, Culture Secretary Lisa Nandy asked officials to work with the regulator to speed up investigations and consider stronger powers to close down non‑compliant charities. (gov.uk) Ministers placed the announcement within a wider push on social cohesion, signalling changes across several policy areas intended to ‘renew the social contract’ and protect public confidence. (gov.uk)

DCMS confirmed it is examining mandatory identity verification for trustees, digitisation of charity accounts, and stronger local authority powers, including fines, to tackle unlicensed street fundraising. Officials will also work with the Commission to accelerate decision‑making on high‑risk cases. (gov.uk)

The Government’s action plan Protecting What Matters also states it will extend the Commission’s ability to suspend trustees and to shut down charities; introduce automatic disqualification for unspent hate‑crime convictions and for providing false or misleading information to the regulator; and give the Commission explicit discretion to disqualify individuals who have promoted terrorism, violence or hatred, or who are excluded from the UK, deprived of citizenship or subject to sanctions. (gov.uk)

Ministers point to caseload pressure. Since October 2023, the Commission has opened more than 400 regulatory cases related to hate speech and made around 70 referrals to the police where criminal offences may have been committed. (gov.uk)

Current law already equips the Commission with significant tools. The Charities (Protection and Social Investment) Act 2016 expanded the Charities Act 2011 to allow official warnings, extended suspension and removal powers, a discretionary disqualification regime for trustees and senior managers, and-subject to safeguards after a statutory inquiry-a power to direct trustees to wind up a charity. (legislation.gov.uk) The winding‑up direction has been used sparingly; the Commission has previously issued notice of intention before ordering trustees to dissolve a charity under section 84B. (gov.uk)

Due process remains central. Decisions taken under the Charities Act can be challenged in the First‑tier Tribunal (General Regulatory Chamber) (Charity). Government says it will review the appeals framework to support faster, more effective regulatory action, alongside independent oversight through the Tribunal. (gov.uk)

Scope matters. The proposals relate to the Charity Commission’s jurisdiction in England and Wales. Separate regimes operate in Scotland and Northern Ireland under OSCR and the Charity Commission for Northern Ireland respectively. Boards active across borders should track each regulator’s guidance and any aligned reforms. (gov.uk)

A consultation to ‘road‑test’ automatic disqualification for hate‑crime convictions is due to open shortly. No legislative timetable has yet been published for the wider package set out by DCMS. (gov.uk)

For trustees and senior managers, the near‑term governance response is practical. Refresh risk assessments for programmes and communications where political or international issues are in scope; document trustee decisions; and make sure serious‑incident reporting routes are understood. The Commission has previously warned that charities must not become forums for hate speech linked to overseas conflicts. (charitycommission.blog.gov.uk)

Identity verification would be a significant operational shift. Companies House will require directors and people with significant control to verify their identities from 18 November 2025; the Government’s proposal would extend checks specifically to charity trustees, with implementation details to follow. Charities that are companies should expect overlap and plan for process integration. (gov.uk)

Street‑based fundraising is already subject to licensing and standards through long‑standing legislation and the Code of Fundraising Practice. Government intends to enhance local authority enforcement against unlicensed activity, complementing existing arrangements for street and house‑to‑house collections. (fundraisingregulator.org.uk)

These charity measures sit within a broader cohesion programme published on 9 March 2026, which includes actions on integration, campuses and local resilience. Policy teams should monitor DCMS and Home Office updates over the coming weeks as consultation materials and any draft legislation are released. (gov.uk)