Minister for the third sector Angela Smith has been challenged to reveal the true cost to charities of the forthcoming music licensing changes, after she claimed in parliament that the predicted figure of £20m was “an overstatement”.

Speaking yesterday in a debate on the removal of charities music licensing exemption, which allows charities to play music at events and in charity shops without having to pay royalties, Smith challenged shadow minister for the Cabinet Office Francis Maude’s use of the figure.

She said: “That number was contained in the original consultation, but I think that we have moved on significantly from then, as a result of the negotiations.

“I shall keep him up to date, as he seems to sadly out of date at present.”

However, NCVO’s Don’t Stop the Music campaign has stated that it is unaware of any new estimates on the cost to the sector, and asked the minister to explain.

“We have long expressed deep concern about the impact this new charge would have on the voluntary sector and its ability to help disadvantaged and vulnerable people,” said NCVO’s chief executive, Stuart Etherington.

“We would be pleased to hear of a reduction in the estimated £20m figure and would urge OTS to share any further information they have on this.”