Question
To ask Her Majesty’s Government, further to the remarks by Lord Nash on 1 December (HL Deb, col 1054), what is the role of the Charity Commission in scrutinising academies.
Answer
Academy trusts are charities, and must comply with charity law. As Principal Regulator the Secretary of State has a duty to promote this compliance by the charity trustees with their legal obligations in a trust’s management and administration.
The Charity Commission has powers of investigation and enforcement over academy trusts where the Secretary of State, as Principal Regulator, requests that the Commission investigates a concern that the Department has identified. This means that, in consultation with the Principal Regulator, the Charity Commission, will investigate and if a serious failure to comply with charity law is found, has the necessary enforcement powers to act if sanctions are required.
Academy trusts are exempt from registration and direct regulation by the Charity Commission and are instead overseen by a Principal Regulator. As PR, the Secretary of State has powers to investigate but enforcement powers rest with the Charity Commission.