Age UK criticised by Charity Commission over E.ON partnership
Melanie May | 20 April 2016 | News
Age UK must review its involvement with the energy market following a Charity Commission investigation into its relationship with E.ON, the regulator has said.
The charity should also make clear to customers any commission or fee received from commercial partnerships. The recommendations come as part of a report by the Charity Commission following its recent investigation into allegations that the charity was receiving a significant sum of money from E.ON to promote a particular tariff that was more expensive than others available.
The investigation found processes in place for reviewing the suitability of products prior to selection, but that it was unclear whether Age UK had sufficiently considered the risks of targeting beneficiaries with a commercial product in an area where the charity also campaigns on behalf of its beneficiaries. The Commission also found that the charity’s processes for ensuring that the partnership remained in the best interests of the charity were insufficient and needed to be kept under more regular review.
In addition, the nature of the commercial partnership across the range of services, and the fee or commission received by the charity through the trading subsidiary, was not made clear to customers. The Commission has recommended that Age UK clearly identifies any commission or fee received by the charity on all Age UK branded products. A number of further recommendations were also made to ensure that the charity is fully compliant with its legal duties.
David Holdsworth, chief operating officer at the Charity Commission said:
“Participation in the energy market poses significant risks and Age UK should consider whether continued involvement is in the charity’s best interests. Although the charity had oversight mechanisms, the Commission found these were insufficient and needed to be kept under more regular review. Any fee or commission that the charity receives through these arrangements must be clear and transparent.”
An Age UK spokesperson commented:
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“We accept we can never be too transparent and our trading arm needs a sharper demarcation from the Age UK charity. We want every customer of our trading arm to know who they have bought from, that any surplus is then gifted to our charity, and how this then benefits older people in need. We will be making some changes so this is always crystal clear.”
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.