HM Treasury has given the Charity Commission permission to begin consulting on different options for funding the regulatory body.

Formal consultation is now expected to start “shortly”, William Shawcross, chair, and Paula Sussex, chief executive of the regulator said, in a letter sent to the Lords Select Committee on Charities.

The letter said they had now received permission from the Treasury to begin the formal process and were working on the next stage with the minister for civil society and officials in the Department for Culture Media and Sport.  They also revealed that the Treasury has clarified that any funding from the sector “would be in addition to existing grant in aid”.

Senior Commission officials have indicated on a number of occasions that they believe charities paying towards the Commission’s costs is the best way to ensure financial sustainability.