The Charity Commission has been ordered to pay initial legal costs of £50,000 to Catholic Care (Diocese of Leeds) after losing its case in the High Court last week.

The final amount has yet to be decided as the case still ongoing, with the Commission set to reassess its position on whether the charity can change its objects in order that it can refuse to allow homosexual couples to use its adoption services.

The Commission was given 14 days to pay the initial amount, which represents the first time it has been ordered to pay costs on a case since the late 1990s.

A spokeswoman for the Commission said: “"The Commission makes a large number of legal decisions every year which are capable of being challenged in the Tribunal or the Court. 

“Paying the costs if the challenge is successful is potentially a consequence of any appeal although the basis on which costs can be awarded varies depending on the action and the court or tribunal in which it is brought. 

“The careful management of its exposure to costs is part of the Commission's consideration of how it approaches its response to any legal challenge.”

Lords reject Equality Bill amendment

Meanwhile, attempts in the House of Lords to amend the Equality Bill to ensure Catholic adoption agencies can turn away homosexual couples have failed, after it was ruled that the issue had already been sufficiently well debated.

A group of peers led by Baroness Williams of Crosby had proposed the amendment, but Baroness Royall of Blaisdon stated: “I have had the privilege of being present throughout our deliberations on the Equality Bill and I can assure the noble Lord that the issue has been dealt with.

“We have debated this issue twice and we have specifically addressed Catholic orphanages.”