Barts Charity becomes independent from Department of Health regulation

04 Aug 2014 News

Barts Charity, the country’s third largest NHS charity, has become the first to be granted independence from the regulation of the Health Secretary, under new rules approved last year.

Barts Charity, the country’s third largest NHS charity, has become the first to be granted independence from the control of the Health Secretary, under new rules approved last year.

There are around 300 NHS charities, with a combined annual income of around £300m and assets of £2bn.

Most of those charities are regulated by both the Charity Commission and the Health Secretary, under rules set out in the National Health Service Act 2006.

The Health Secretary has the power to appoint and dismiss trustees and to transfer the charity’s assets to another organisation. In most cases, the NHS trust acts as the sole trustee of the charity.

NHS charities had at one stage faced the possibility of having their assets recorded on the balance sheets of their associated NHS trusts, because they were perceived to be controlled by those trusts.

In May 2014, the Department of Health announced it would allow NHS charities to apply to be released from the provisions of the NHS Act.

Barts Charity, which raises money for Barts Health Trust, including St Bartholomew's Hospital (pictured), is the first to receive an independence order. The order came into effect on 31 July.

Andrew Douglas, chief executive of the charity, said: “The Department of Health has recognised how important it is for a charity to be able to demonstrate to its potential donors that it is visibly independent from government.

“I am delighted that Barts Charity has achieved this new, independent status, which we can now use as a springboard to provide even greater benefit to the NHS patients of north east London. The groundwork for this has taken many years and I would like to thank Barts Health NHS Trust which has been fully supportive of the charity throughout.”

Jonathan Brinsden, a partner at Bircham Dyson Bell who advised the charity, said: “This is something which the charity has worked hard to achieve. Operationally speaking, the charity will be placed on a level playing field with other health charities, which have never been subject to the operational restrictions of the NHS statutory framework, and will enable better engagement with supporters and stakeholders.”

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