PCS: Big Society could mean big fraud if charity regulator is cut
The government’s plans to open up more public services to voluntary groups could mean a bonanza for fraudsters if cuts to the charity regulator are not reversed, the Public and Commercial Services union warns.
At the same time as encouraging more of the third sector to take control of services, the government is planning to cut the Charity Commission’s budget by a third – a move that will leave the commission unable to fulfil is important functions, the union says.
In September, the commission’s outgoing chief executive Andrew Hind said in a newspaper interview: “A lot of the things we have been trying to do would be at risk in a world where we had 25 to 30% less funding.”
PCS members from the Charity Commission told MPs at a meeting in parliament today (23 November) that in 2008 there was an estimated £32 million of fraud in the charitable sector, and that commission staff have long felt they had insufficient resources to tackle the problem effectively.
Charities face a double whammy of public donations falling because people have less money and a reduction in funding because of government cuts. At the same time, demand for their services – such as advice about housing, relationships and debt – are on the increase.
Poorer regulation of the sector risks damaging the reputation of charities and could lead to fewer individuals and organisations being willing to donate and support them.
PCS general secretary Mark Serwotka said: “Public confidence in charities remains high, but we believe this is under threat from an increase in fraudulent fundraisers and collectors as a result of the government’s cuts.
“The Tories have had a hard enough job explaining what the Big Society means, and understandably so. As well as meaning a big cut in the welfare state, they will find themselves having to explain to the public why it has led to a big con for charities.”
ENDS
Notes
– For information and interview requests contact PCS national press officer Richard Simcox on 020 7801 2747 or 07833 978216
– The Public and Commercial Services union represents civil and public servants in central government. It has more than 300,000 members in over 200 departments and agencies, as well as staff in parts of government transferred to the private sector. PCS is the UK’s sixth largest union and is affiliated to the TUC. The general secretary is Mark Serwotka and the president is Janice Godrich
– Follow PCS on http://twitter.com/pcs_union
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