It is a great pleasure to follow the hon. Member for Rochford and Southend East (James Duddridge). I think it was four years ago that we served on the Committee considering the original Bill, which later put in place the gift aid small donations scheme. I think that the hon. Members for Foyle (Mark Durkan) and for Amber Valley (Nigel Mills) were also members of the Committee. At the time, we were all quite enthused about the programme; indeed, we still are. We recognise the importance of giving gift aid-style relief on small donations, especially in a way that will help small charities.
Some real improvements to the Bill have been suggested today. The introduction of contactless payments is good, although I fully agreed with what the right hon. Member for Meriden (Dame Caroline Spelman) said about the lack of provision for cheques. I want to dangle a little carrot in front of Government Members by saying that when the original Bill was discussed in Committee, it was discovered that—shock, horror—it was not only £5, £10 and £20 notes that would be eligible for gift aid-style relief, and that even if someone dropped in a few euro notes, they would be eligible as well. If one can have relief for euros and other currencies, there is no reason why it is not possible with cheques. That would be a welcome improvement along with contactless payments and a look at text donations as well. The increase in the upper limit is very welcome, and it shows how this scheme has developed and how it has the potential to help small charities. We need to realise that this Bill is all about helping small charities, because it is those charities and community groups for which this Bill was created.
In the Committee that considered the Charitable Donations Act 2012, we quibbled away at the long-forbearing Ministers about the ratio between gift aid eligibility and donations. At the time, in the original draft of the Bill, we were talking about a ratio of 3:1, 4:1 or 5:1. We persistently kept asking why it was one ratio and not another. The hon. Member for Rochford and Southend East just asked why there should be any link at all with gift aid. The survey from the National Council for Voluntary Organisations, the Charity Finance Group, the Institute of Fundraising and the Small Charities Coalition sets out much the same view. Even if it was felt that, for reasons of fraud, we needed that link with gift aid, why is the 10:1 ratio on a tablet of stone?
We discovered in that earlier Bill Committee that ratios of 3:1, 4:1 and 5:1 were pretty expendable. Why, if a charity is registered and has about £10 in gift aid, is
that not enough in terms of fraud detection? Furthermore, I am not 100% convinced of the link with fraud. When we had that previous debate, I remember someone raising the issue of the Cup Trust, which was—I will try to put this diplomatically—involved with various fraudulent practices. We innocently asked whether it was registered for gift aid. Well of course it was, which does not suggest that there is much link between fraud and gift aid. If that is something that the Government genuinely believe is a problem, I really cannot see for the life of me why the ratio has to be 10:1; it just does not make sense.
On balance, this is a good Bill. We welcome it, but I urge the Minister, the Government and all members of the Committee to look again at the whole matching requirement, how it is constituted, and why oh why the ratio has to be 10:1.
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