# Charities to be banned from using government funding to lobby on behalf of beneficiaries

- Link: https://fundraising.co.uk/2016/02/06/charities-to-be-banned-from-using-government-funding-to-lobby-on-behalf-of-beneficiaries/
- Published: 2016-02-06T23:43:01+00:00
- Author: Howard Lake

**The Cabinet Office has announced that from May 2016 all organisations that receive
government grants will be banned from using these funds to lobby government and 
Parliament.**

A new clause to be added to all future and renewed central UK government grants “
will make sure that taxpayer funds are spent on improving people’s lives and good
causes, rather than lobbying for new regulation or using taxpayers’ money to lobby
for more government funding”.

The government made [grants of £2.2 billion to charities in 2013](http://www.theguardian.com/voluntary-sector-network/2016/feb/11/grants-local-charities-campaign-appeal-government-cuts),
a decline since the high point of £6 billion in 2003.

## Advertisement

[The Cabinet Office attempted to head off criticism](https://www.gov.uk/government/news/government-announces-new-clause-to-be-inserted-into-grant-agreements)
that this might erode freedom of speech by suggesting that charities could continue
to use other funds to lobby or press for changes as part of their charitable objectives
if they had them or if they wished.

Matthew Hancock, Minister for the Cabinet Office, indicated a difference between
traditional direct help from charities and efforts by charities to persuade government
to tackle some of the root problems that created the need for the charities’ help
in the first place. He said:

> Taxpayers’ money must be spent on improving people’s lives and spreading opportunities,
> not wasted on the farce of government lobbying government. The public sector never
> lobbies for lower taxes and less state spending, and it’s a zero sum game if Peter
> is robbed to pay Paul.

The announcement came one day after a group of charities combined to launch the 
[Grants for Good](https://fundraising.co.uk/2016/02/09/dsc-launches-campaign-to-save-government-grants/)
campaign, warning that [government grants to charities could dry up completely within four years](http://www.theguardian.com/voluntary-sector-network/2016/feb/11/grants-local-charities-campaign-appeal-government-cuts),
based on current trends in grant cuts.

## The new rule

The specific phrase that appear in new government funding contracts is:

> “The following costs are not Eligible Expenditure: Payments that support activity
> intended to influence or attempt to influence Parliament, government or political
> parties, or attempting to influence the awarding or renewal of contracts and grants,
> or attempting to influence legislative or regulatory action”.

The Cabinet Office has published [guidelines on how the new rule will be implemented](https://www.gov.uk/government/publications/interim-guidance-on-applying-a-new-clause-in-government-grant-agreements).

The mention of political parties in relation to charities’ lobbying is odd in that
it is redundant. Charities are already prevented by law from carrying out party 
political campaigning for their beneficiaries or to seek support for their work.

## Charities required to take a ‘vow of silence’

Sir Stuart Etherington, chief executive of NCVO, pointed out that charities have
a long record of providing insight and expertise to help improve policy-making and
even save or better target taxpayers’ money.

On the Cabinet Office’s announcement he said:

> “The new rules attached to grant income would appear to prevent charities from
> suggesting improvements or efficiencies to civil servants or ministers, or even
> from raising concerns with MPs, for example about the treatment of vulnerable 
> people. Indeed, several government departments have developed ‘strategic partner’
> grant programmes specifically to enable them to access the expertise of charities
> to inform their policy development and delivery for these reasons.
> “This is tantamount to making charities take a vow of silence and goes against
> the spirit of open policy making that this government has hitherto championed.
> We call on Ministers to reconsider this draconian move that could have significant
> consequences for the charity sector’s relationship with government. I trust government
> will consult further on this.”

He subsequently [described the move to the BBC](http://www.bbc.co.uk/news/uk-politics-35509117)
as an “insane policy”. He added:

> “Take a service charity funded to run a helpline. They may well be dealing with
> ex-servicemen, there will be policy issues that emerge from that. They’re not 
> allowed to tell the government?”

![Postcard featuring Dom Helder Camara quotation](https://wfay6x.infiniteuploads.
cloud/2016/02/dom-helder-camara-quotation-leeds-postcard.jpg)

_Questioning the causes of problems that charities tackle doesn’t always go down
well. A Leeds Postcards image from the 1980s with a  pencil drawing by Cuban artist
AJUBEL._

## ‘Not only draconian but self-defeating’

[ACEVO took a similar stance](https://www.acevo.org.uk/news/acevo-react-cabinet-office-statement-campaigning).
It issued the following statement:

> “The charity leaders’ network ACEVO is shocked and disappointed by the latest 
> erosion of free speech and advocacy proposed by Cabinet Minster Matthew Hancock.
> “Charities by their very nature are best placed to know what is needed by the 
> people and causes they serve. To restrict the sector from drawing the Government’s
> attention to gaps or failures of service is not only draconian but self-defeating.
> “Charities’ daily experience gathers vital intelligence and a  profound understanding
> of society’s needs, intelligence and understanding which are crucial to the formulation
> and delivery of responsible and meaningful policy”.
> The group urged the Government immediately to reconsider the proposal and withdraw
> it.

## More reactions

https://twitter.com/sarahwollaston/status/695967833126211585

> Charities barred from using government grants to lobby ministers [https://t.co/xHVWpc4BKz](https://t.co/xHVWpc4BKz)
> > more policy designed purely for headlines
> — Jay Kennedy (@JKENNEDYDSC) [February 6, 2016](https://twitter.com/JKENNEDYDSC/status/695912179002929152?ref_src=twsrc%5Etfw)

_Main image: [silence](http://www.shutterstock.com/pic-259340339/stock-photo-finger-on-the-lips-sign-for-silence.html)
by Vladimir Gjorgiev on Shutterstock.com_

 

 * ** Read [13 tweets designed to mock Brooks Newmark’s comments that charities should stick to their knitting](https://fundraising.co.uk/2014/09/04/favourite-responses-brooks-newmarks-knitting-comment/)**

![Loading](https://fundraising.co.uk/wp-content/plugins/page-views-count/ajax-loader-
2x.gif)
