UK government response to the Kruger review: review of charity classification and the National Lottery Community Fund

Article 02 March 2022 Experience: Charity law and governance

On 2 February 2022, the UK Government published its response to the 2020 Kruger Review, which outlined 20 recommendations for how the UK’s voluntary sector could contribute to its recovery from the COVID-19 pandemic.

In line with the pledges made in the Levelling Up White Paper also published this month, the UK Government’s response focuses on supporting local organisations and communities.

As part of this, the government has said that it will renew the policy directions of the National Lottery Community Fund in 2022 to ensure that the fund’s focus on “supporting local organisations and levelling up the country by building stronger communities” is able to continue. The government will consult publicly on this in order to ensure that these new policy directions capture the people and places most in need.

The government has also stated that it is working to close data gaps in the sector, and to achieve this this Department of Culture, Media and Sport will work with the Charity Commission to review the classification of charities on the charity register. The focus of this classification review will be on what charities actually deliver, in connection with the Kruger Review’s recommendation that there needs to be clearer data about where funding goes, and what outcomes are delivered.

The Kruger Review also recommended policy changes to make it easier to start and run a charity (for example, creating a modern version of the local CVS (Council for Voluntary Service)). While the government response felt that there is little evidence to suggest that there are significant barriers to starting a charity (and noted that working with existing charities can be an equally, if not more, effective way of helping people) the government pledged, as set out in the Levelling Up White Paper, to develop a Strategy for Community Spaces and relationships, which will consider support for, and leadership of, civil society groups.

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