More than £60bn has been donated under gift aid in the 25 years since its introduction, according to analysis by the Charities Aid Foundation (CAF).

The figure, which has been highlighted by CAF to celebrate the tax relief’s latest anniversary, represents the total amount donated with gift aid attached alongside more than £12.3bn from government in the form of tax relief.

This financial year HMRC expects charities to claim £1.2bn from the relief, an amount which CAF says represents around 6 per cent of the sector’s voluntary income.

Gift aid was launched in October 1990 by future Prime Minister John Major (pictured above with Olympic swimmer Sharron Davies). Looking back on its success, Major said: “Governments, however wealthy, cannot meet the scale of need that exists. That is why philanthropy and charity are so important.

“As Chancellor of the Exchequer I felt it was only right that the act of giving was maximised by introducing the gift aid scheme, which is now worth over one billion pounds to charities.”

The gift aid scheme saw major changes in 2000, when Chancellor Gordon Brown removed the restriction that gift aid could only apply to donations of £600 or more. Since then gift aid receipts have grown by an average of 15 per cent per year.

John Low, chief executive of CAF, said: “Since the lower rate on a donation valid for gift aid was removed, the scheme is truly inclusive and proved to be a success with governments of all complexions.

“Britain is one of the world’s most generous countries and it is fitting that we have the world’s greatest charitable tax relief.”