The Charity Commission will relocate to smaller offices next month, a move that it estimates will halve its running costs.
The regulator will move from its current base on Millbank in central London to nearby offices at 1 Drummond Gate, Pimlico, on a five-year lease.
The commission said its running costs for the London base would fall from just under £1.1m to £504,000 a year. The new office has 590 square metres of space, compared with the 1,110 square metres at Millbank.
The regulator has about 75 employees working in the London offices – they will move on 11 March. A commission spokeswoman said it had exercised a break clause in the nine-year lease that it signed on its Millbank offices in 2009.
The move means that staff will be expected to adjust to the smaller space through more hot-desking, laptop use and flexible working. The office will have four desks for every five employees.
"The move has been prompted both by the commission’s desire to save costs after the 33 per cent reduction in its funding and the ending of its current lease with the Audit Commission," a Charity Commission statement said.
The commission’s budget is to fall from £29.3m in 2010/11 to £21.3m in 2014/15.