Opposition to proposals that would allow large charities to pay their trustees has gathered pace, with seven umbrella bodies writing to minister for civil society Nick Hurd, warning that it would be damaging for the charity sector.

Currently, a charity can pay their trustees only with permission from the Charity Commission or if it is allowed in their governing documents. However, as part of his review of the Charities Act 2006, Lord Hodgson has recommended that charities with an income of over £1m should be given the automatic right to pay their trustees.

The proposal has been met with strong opposition from some in the charity sector and collectively NCVO, Volunteering England, Navca, the Institute of Fundraising, the Directory of Social Change, Small Charities Coalition and Community Matters, have written a letter to Hurd urging the government to reject the proposal.

The letter points out that Lord Hodgson’s own research evidence identifies that 61 per cent of the public are against payment of trustees.

“Given that charities of all shapes and sizes rely on public support – not just in terms of funding , but more fundamentally, for their legitimacy – it is vital not to put public trust and confidence at risk over this issue,” it says.

The letter also asserts that at a time of great financial pressure it would be “unjustifiable” to introduce an automatic right to pay trustees:

 “The pressure that would follow for charities to begin paying their trustees or to increase their expenses and remuneration could be very damaging for the sector and their beneficiaries.”

The umbrella bodies urge Hurd and government to uphold the voluntary principle of trusteeship.

Hurd has said the government  wants to hear from the charity sector on what it thinks of  Lord Hodgson's 113 Charities Act review recommendations and it will devise its own traffic light system to rate them.