This funding has been awarded as an interim solution, while the Commission considers longer term, more sustainable funding models.

The regulator is to launch a formal consultation later this year on whether the largest charities should make what it calls ‘a modest contribution’ to its work. The move would see it receiving around £7.5m a year through contributions from the 2,000 largest charities on the register, namely those with annual incomes of over £5m.

Tracey Crouch, minister for sport and civil society, said: ‘I am delighted that this funding will mean the Commission can meet the increasing demands for its services and help charities continue to improve lives up and down the country. It is important that the sector continues to innovate, and this includes the Commission considering a range of funding models for the future.’

William Shawcross, chairman of the Charity Commission, said: ‘It is right that we consider whether those in the sector with the broadest shoulders should make a contribution towards aspects of our work, and I am pleased that we will shortly be publishing a consultation on whether and how we do this.

‘We would plan to use these funds to increase and improve the services and support we offer and want to encourage charities to step forward and feed in their thoughts.’

The consultation is expected to look at the practicalities and implications of a system for charging the largest charities, as well as the sort of work charities and trustees, particularly of smaller charities, would like to see the Commission expanding or developing.

The regulator said recent research revealed that 80% of trustees are responsible for charities that do not have paid staff and as a consequence they look to the Commission for authoritative advice and guidance on managing their charities effectively and efficiently.

Report by Pat Sweet