The Charity Commission paid £1.7m-worth of severance packages in the 2010/11 financial year, up from just £98,000 the previous year.

The payments came as the Commission began its response to funding cuts amounting to a third of its budget over four years, launching a Voluntary Exit Scheme in January 2011.

The payments relate to the departure of 45 staff, one of whom was paid between £150,000 and £200,000, while another received between £100,000 and £150,000.

Elsewhere, the Commission claimed success in meeting all of its key performance indicators over the year, the first time it has done so.

It also said that 88 per cent of charity registration applications were made online, compared to just 50 per cent the previous year, while take up of online services more generally rose by 8.7 per cent.

This allowed it to reduce the post it receives by 40 per cent and the calls it takes by 22 per cent.

Chief executive Sam Younger said: “This report shows that we’re heading in the right direction – performing highly across the board, moving traffic online, creating excellent online advice – all these trends will need to continue if we are to help maintain trust in charities while adjusting to reduced resources.
 
“But, as the ‘looking ahead’ sections of the report make clear, charities need to recognise that their relationship with the Commission is changing.”