Charities
Charles Walker calls on the government to do something to end the practice of 'chugging' (short for 'charity mugging') - a practice of hiring, usually young, people to accost passers-by in the street asking them to donate to charity by direct debit.
Mr. Charles Walker (Broxbourne) (Con): What plans she has to meet the Charity Commission to discuss implementation of the Charities Bill. [71286]
The Parliamentary Secretary, Cabinet Office (Edward Miliband): The Charities Bill has been widely welcomed for the way it improves and modernises charity law. It has completed its passage in the House of Lords and will return to the House as soon as parliamentary time allows. I will meet the chair and chief executive of the Charity Commission on Monday 22 May to discuss a number of matters of mutual interest, including the Charities Bill.
Mr. Scott: Will the Minister look further into the burden of VAT on charities as part of his work?
Edward Miliband: I know that the hon. Gentleman worked hard in the charities industry before entering the House, and he is a doughty fighter for charities in his own constituency. On the issue of irrecoverable VAT, it would cost £500 million to return all that VAT to charities. Two reviews have looked at the questionof whether there is a way of doing so for somecharities and not others, but they have not found a solution. The Government have done a huge amount of work on charities' tax position, and there has been a £400 million increase in the amount that they receive under Gift Aid since we introduced reforms. That is just one of the things that the Government are doing to help the charitable sector.
Mr. Walker: I welcome the Minister to the Dispatch Box, but what is he going to do about the awful practice of chugging? Basically, £8 of every £10 goes to organisations that put hired muggers on the street to make people part with their hard-earned cash in the belief that it will go to good charities when, in fact, it goes to the organisations that have won the contract.
Edward Miliband: The hon. Gentleman asked a characteristically robust question. Everyone in the House wants to encourage charitable giving, including donations through face-to-face collections. The Charities Bill makes a difference, as it regulates the practice of collecting on the street through the Charity Commission and a system of licensing by local authorities.