Our weekly round up of news and updates from across the sector

Charity Commission

Blog on supported housing models

The Commission has published a blog on the lease-based model of supported housing and the role charities play in helping their beneficiaries access accommodation and support services. The blog identifies some key risks with the model, including insufficient income, conflicts of interest and growth that is too rapid. It also sets out some guidance for trustees to consider.

Autumn statement

Charity Tax Group has summarised the key measures for charities and overall announcements here. Overall, there is disappointment in the sector at the lack of measures specifically aimed at supporting charities.

Swept under the carpet: The outlook for charities following the Autumn Statement 2023. Pro Bono Economics, the charity which aims to use economics to empower the social sector, provides its analysis of what the Autumn Statement means for the charity sector.

Social Enterprise UK published an official response to the Government's Autumn Statement.

Elections and campaigning

Last week the spending limits for organisations and individuals that carry out general campaigns ahead of an election (but are not standing candidates themselves) were increased. We explain more here, "New spending limits for non-party campaigners – what you need to know".

Also see under Funding below.

Climate change

ClientEarth v Shell Plc and others [2023] EWCA 1866

The Court of Appeal has refused environmental NGO, ClientEarth, permission to appeal. The appeal centred on the High Court's July 2023 judgment that ClientEarth had failed to make out a prima facie case to enable the grant of permission under section 261(1) of the Companies Act 2006. This was permission for it to continue a derivative claim against Shell plc's directors for alleged breaches of their general duties, in connection with the company's climate change risk management strategy.

Bates Wells Leticia Jennings comments, "Whilst disappointing that the claim could not surmount the procedural hurdles required to bring a derivative claim, ClientEarth should take comfort in all that the claim has achieved, particularly in raising the profile of climate risk for directors. Ultimately, relevant to this particular case, the role of the court is to interpret and apply statute laid down by Parliament. ClientEarth's claim has shown that the law may well need updating to reflect societal change in respect of the awareness and acceptance of climate risk. It has also shown that even if not ultimately successful, strategic litigation can have a huge benefit in raising the profile of these issues. Charities are uniquely placed to achieve this and ClientEarth's action has progressed the discussion around directors' duties and the prominence of climate risk as an issue for board members." For our full case analysis please read here and you can read ClientEarth's analysis here.

Environment

The government has announced a competition for a new national forest (details will be released later this week). Communities will be able to put their local areas forward, with the winning location receiving up to £10 million to help fund the project. It comes alongside the unveiling of two new Community Forests in Derbyshire and Tees and funding for research into climate and pest resilient woodlands.

Equality, equity, diversity and inclusion

The Social Mobility Foundation (SMF) has published new analysis on the class pay gap showing that professional employees from working-class backgrounds earn an average annual salary of £45,437, which is £6,291 less than the average salary of £51,728 for those in the same occupation hailing from more privileged backgrounds. The gap widens to £7,575 in the private sector. Women with a working-class background also have a wider pay gap (£7,042) than men with a working-class background (£6,350).

In this blog, Sightsavers' Fiona Lawless reports on the importance of inclusive data and accountable data governance, particularly in the context of equal representation for people with disabilities. Following participation in the 'Festival de Datos' hosted by the Global Partnership for Sustainable Data, Sightsavers has also reaffirmed its commitment to inclusive data in its new Inclusive Data Charter Action Plan.

Safeguarding

The House of Commons Library has published a briefing paper, An overview of child protection legislation in England, which briefly outlines the legislative framework for child protection and child safeguarding in England, organisational responsibilities and the government proposals for reform, which follows on from the findings of the government consultation, Children's social care: Stable Homes, Built on Love.

Fundraising

Fundraising Regulator

The Fundraising Regulator (FR) has highlighted key learnings from its Complaints Handling Survey which it ran over the summer. Findings included:

On the Annual Complaints Report:

  • A majority of respondents recommended that the FR increases its sample size to more accurately reflect the charity sector.
  • The accessibility and relevance of data could be improved, which may help to increase the number of people who read the report.

On information published about casework:

  • The FR posed questions about how easy it was to find published information on casework and there were mixed responses on this.
  • When seeking to find out if casework decisions and data informed organisations' plans for fundraising, 35% agreed or strongly agreed, 42% were neutral and 23% disagreed or strongly disagreed.

Funding

Bates Wells Suhan Rajkumar and Max Dowbenko have jointly authored this blog with Bond on the Foreign Influence Registration Scheme and the draft guidance which has been published by the Home Office. The scheme has application to any organisation which receives funding from a 'foreign power'. The blog explains the guidance and highlights the consultation on the draft guidance, which is open for a few more days until Friday 1 December.

In this blog for NPC, Kate Symondson, Head of Philanthropy at The Symondson Foundation, highlights the importance of funding small charities and how to overcome some of the barriers to this.

Data protection

Websites and cookie choices for personalised advertising

The Information Commissioner's Office (ICO) has warned some of the UK's top websites that they face enforcement action if they do not make changes to ensure users have fair choices over whether or not to be tracked for personalised advertising. There will be an update on this work in January, with details of companies who had not addressed concerns. Earlier this year, the ICO made clear that organisations must make it as easy for users to "Reject All" advertising cookies as it is to "Accept All".

Data Protection and Digital Information Bill

The government has announced changes to the Data Protection and Digital Information Bill. The announcement highlights changes including:

  • New powers to require data from banks and financial organisations, with the aim to reduce benefit fraud.
  • New rules to require social media companies to hold onto data where a child has died through suicide. Described as a 'data preservation process' it would require social media companies to keep any relevant personal data which could then be used in subsequent inquests or investigations.
  • The use of biometric data e.g. fingerprints to 'strengthen national security'.

Bates Wells Eleonor Duhs comments, "The substantial number and type of amendments laid by the government in this bill have been controversial. Overall the amended bill appears to be designed to water down data subject rights and remove other safeguards for processing of personal data. Further, the Retained EU Law (Revocation and Reform) Act 2023 is set to delete EU fundamental rights from the UK statute book at the end of this year. The changes the government is making to the statute book will make data protection law standards in the UK less protective and more uncertain."

Freedom of Information

The Court of Appeal has ruled against the ICO in a Freedom of Information Act 2000 (FOIA) appeal. The appeal was in relation to public interest factors for and against disclosure when applying exemptions under the Act. The Department for Business and Trade had argued that they could be aggregated, whilst the ICO's position was that the Act was structured to allow sequential consideration of single exemptions, rather than aggregation. The Court of Appeal has overturned the Upper Tribunal's decision and concluded that section 2(2)(b) of the FOIA does permit the public interest to be aggregated. The ICO is now considering next steps.

AI

The government has responded to the interim report of the House of Commons Committee setting out its response to the recommendations made and confirming progress against actions set out in the AI regulatory white paper. Key steps taken or being taken by government include:

  • Government has established a central AI risk function within the Department for Science, Innovation and Technology (DSIT) to monitor AI risks.
  • The AI and Digital Hub has also been established within the Digital Regulation Cooperation Forum to pilot a multi-regulator advisory service.
  • No AI specific legislation will be introduced immediately – DSIT will work with other government departments to develop the UK regulatory approach.

The government will provide an update to its regulatory approach in its response to the AI regulation white paper consultation in due course.

Separately, Lord Holmes of Richmond has introduced the Artificial Intelligence (Regulation) Private Members' Bill to the House of Lords, which aims to make provision for the regulation of artificial intelligence and for connected purposes. But as the Bill doesn't have government support, there is no future stage currently scheduled for it to progress.

Public procurement and subsidy control

The Cabinet Office has published new guidance, Transforming Public Procurement: Our Innovation Ambition. The guidance sets out how the new public procurement regime under the Procurement Act 2023 will, in the government's view, enable contracting authorities to "embrace innovation more, and procure in more flexible and innovative ways".

Public law

A new role of Permanent Independent Public Advocate will be created, with the aim to better support victims of major incidents, such as Hillsborough, the Manchester Arena bombing and the Grenfell Tower fire. The idea behind the position is for information and advice to be quickly deployed to victims of an emergency and for the Advocate to advise the Government on whether a review or inquiry should take place following a major incident. The role will be created through amendments to the Victims and Prisoners Bill as it returns to the Commons.

Scotland

OSCR has published an interim inquiry report into AK McCosh Trust for Coulter Church, after concerns that the church was no longer a place of Christian worship and therefore no longer met the 'charity test' of providing public benefit in furtherance of its charitable purposes.

Social enterprise

New figures published on Social Enterprise Day (16 Nov) shows that UK social enterprises created £1.2bn in profit over the last year, and reinvested £1bn to drive social and environmental progress. The full 'State of Social Enterprise' report will be available on 6 December.

The latest Social Enterprise Barometer shows resilience in the social enterprise sector despite financial strains. Profitability has dropped by 10% since January, but fewer social enterprises are reporting reductions in staff, and more are growing staff numbers. Read the full report here.

Co-op News reports on the adoption of the San Sebastian Manifesto by nineteen European states at the European Social Economy Conference, organised by the Spanish Ministry of Labour and Social Economy in the framework of the Spanish Presidency of the Council of the European Union. The signatory states confirmed their commitment to an ambitious roadmap for the social economy, including supporting existing initiatives such as the implementation of the European Social Economy Action Plan.

Social investment/social impact investment

Pioneers Post reports that Lord Victor Adebowale, the chair of Social Enterprise UK, spoke at a round table conference on access to social investment for black communities. Two years on from his commission's report, Reclaiming the Future: Reforming Social Investment for the Next Decade, Lord Adebowale said there is "no excuse" for why the recommendation of £50m of social investment into Black-led social enterprises hasn't been fulfilled.

The Impact Investing Institute has published new guidance, Bridging divides: A guide on using catalytic capital for a global just transition, prepared with financial services and capital markets research and consulting firm, Krutham, with the support of the Catalytic Capital Consortium (press release). The guidance describes the landscape for catalytic capital, which is more patient, risk-tolerant, concessionary and flexible than conventional investment, and aims to help catalytic capital providers, including development finance institutions, governments, philanthropic organisations, private investors, and corporations, to mobilise private investment towards a socially equitable net zero transition that accounts for local development needs.

Heritage

Historic England has launched a consultation (closing on 24 December 2023) on its draft advice note, Climate Change and Historic Building Adaptation. The aim of the note is to provide advice to local planning authorities and others involved in the planning process on:

  • The need for planning permissions or other consents for some of the common changes required to decarbonise and improve the energy efficiency of historic buildings.
  • Determining proposals to decarbonise and improve the energy efficiency of historic buildings to enable positive climate action.
  • How local plans and other planning mechanisms can deliver a positive strategy for historic buildings that proactively supports climate action.

International development

Bond's assessment of the UK White Paper on International Development can be found here, highlighting the progress made and where ambition needs to be greater.

Education

Annual Report 2022/23

Ofsted has published its Annual Report for 2022/23. The introduction by the Chief Inspector makes interesting reading, particularly on the budget constraints that Ofsted is operating under, noting that "relative to school budgets, the current government allocation to school inspection is about a quarter of what it was 20 years ago", with resultant impacts being shorter and more intense inspections, briefer reports and lack of ability to do work which helps build school sector goodwill. Some key takeaways are:

  • Education and children's social care continue to recover, and in some areas improve, post-pandemic.
  • There has been an increase in interest and policy development around further education, such as T-levels and the Advanced British Standard Curriculum.
  • There is a concerning shift in behaviour, attendance and attitudes towards education since the pandemic, with fears that the social contract between parents and schools has been damaged.
  • SEND continues to be an area of concern. For example, following 16 local area SEND inspections by Ofsted and the Care Quality Commission, it was found that five had "positive experiences and outcomes", six had "inconsistent experiences and outcomes" and five had "widespread and/or systemic failings" with their SEND arrangements.
  • Recruitment and retention issues continue.

Schools

Ofsted has published an Autumn Education update for headteachers and school leaders. It summarises key information, news and developments, including updates to the inspection process and Ofsted's Annual Report.

The Department for Education has published School exclusion reviews (APEX) data collection guide 2024: Information for local authorities about the submission of their data in 2024. This guidance is aimed at assisting local authorities in completion of the school exclusion reviews data collection exercise.

Higher Education

Higher Education Minister Robert Halfon gave a speech at the Universities UK conference on mental health in Higher Education, saying student mental wellbeing is an "absolute priority" for him. He set out a 3-pillared approach to this issue: funding vital services and projects; spreading and implementing best practice; and clear responsibilities for providers and protection for students.

CEO of the Office for Students, Susan Lapworth, gave a speech at AdvanceHE's Governance Conference on 'good governance' in the higher education sector. She covered three live policy issues – quality, financial sustainability and protecting public funding.

There are details here of the third phase of the government's 'Enough' campaign, which will partner with over 30 UK universities, to help target potential perpetrators of violence against women and girls.

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