Nick Hurd dismisses MP's call to remove charitable status from charities that pay high salaries

Jeremy Lefroy, Conservative MP for Stafford, proposes sanctions against charities that pay senior staff more than £100,000, but the charities minister responds that it is a matter for trustees

Jeremy Lefroy MP
Jeremy Lefroy MP

Nick Hurd, the Minister for Civil Society, has given short shrift to a backbencher’s proposal to remove charitable status from charities that pay senior staff six-figure salaries.

Jeremy Lefroy, the Conservative MP for Stafford, asked Hurd in a written parliamentary question if he would "bring forward legislative proposals to (a) remove charitable status and (b) impose other sanctions on charities which pay senior staff salaries in excess of £100,000".

Lefroy told Third Sector: "My concern derives from seeing some charities, in particular some housing associations, pay their executives enormous sums of money."

He said his concerns were not restricted to housing associations and he wanted charities that paid salaries of more than £100,000 to lose their charitable tax breaks.

"Large charities that pay their chief executives big salaries should be treated like companies," he said.

He said that a salary of up to £100,000 should be sufficient to attract good candidates to senior roles.

"If you are doing it for social good, then £100,000 a year should more than good enough to compensate," he said.

But in a one-line response, Hurd said: "It is for a charity's trustees to determine the remuneration of senior staff, acting in the best interests of the charity and its beneficiaries."

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