Great Ormond Street Hospital Children’s Charity has begun the process to free itself from being regulated by the Department of Health, the charity announced earlier this week.

Last year the Department of Health changed the rules for NHS charities so that the 260 charities that receive and manage funds on behalf of the NHS can set up an independent incorporated charity, into which they can transfer their assets.

The new organisations will be regulated solely the Charity Commission and not by the Department of Health as well, as had previously been the case.

NHS charities are unincorporated and the Health Secretary has the power to appoint and dismiss trustees. They have previously faced controversy because changes in accounting rules, together with the level of authority held by the Health Secretary and their associated trusts, made it likely that some NHS trusts would be required to include charities’ resources on their own balance sheets. Under the new proposals, charities are unlikely to face these issues.

GOSHCC is the largest NHS charity with an annual income of around £70m.

In the announcement the charity said: “Rest assured that this conversion will change neither our objects nor the purposes for which we raise funds.”

The charity expects its new legal form to be in place by 1 April and is asking that stakeholders share any comments or concerns to get in touch by 13 March.