Charities are running unregistered schools which operate illegally, the charity regulator has warned.
The Charity Commission for England and Wales has said it has “intelligence of independent schools run by charities which evade registration with the Department for Education (DfE) by claiming to be part-time schools”.
Unregistered schools are illegal and those who run them are committing a criminal offence. The National Secular Society has long highlighted how some religious groups use unregistered schools to evade scrutiny so they can prioritise fundamentalist religious ideology over the education and welfare of children.
The warnings were included in the commission’s 2026 Charity Sector Risk Assessment, published this month.
Many charities which run faith schools (including registered faith schools) and religious out of school settings such as Sunday schools are registered under the charitable purpose of “the advancement of religion”.
Registered charities are indirectly subsidised by the state through generous tax breaks.
Jewish charity failed to explain £12 million grants for “advancement of religion and education”
The role of charities in running unregistered faith schools has long been suspected. In 2018, the NSS raised concerns about now-removed Jewish religious charity Ezer V’ Hatzalah Ltd, which was registered in Stamford Hill – home to one of the largest communities of Charedi (‘ultraorthodox’) Jews in the UK.
In 2016, the charity’s annual report stated it gave £12 million in grants to “charitable institutions” for “advancement of religion and education”. The report said: “The grants to charitable institutions are detailed in a separate publication. Copies of this publication are available to the public by writing to the Trustees at the charity’s principal address by registered post.”
The NSS was concerned these grants may be used to fund unregistered yeshiva – a type of Jewish faith school. Unregistered yeshiva often present serious safeguarding issues and leave children with little to no secular education, including no ability to speak, read or write English.
The NSS made multiple requests to Ezer V’ Hatzalah for the “separate publication” but received no response.
The Children’s Wellbeing and Schools Act, which became law this year, includes measures to protect children from unregistered schools – measures the NSS has long supported. But there are concerns some unregistered schools, particularly yeshivas, will exploit a loophole which would reclassify them as ‘non-school’ independent educational institutions subject to less stringent standards.
During debates on the bill, several Church of England bishops used their automatic seats in the House of Lords to lobby for yeshiva to be exempt from regulation.
Risk assessment warns of extremism and spiritual abuse in charities
The Charity Sector Risk Assessment also highlighted issues relating to extremism and abuse in charities.
It said charities “must never become vehicles for hate and must not allow their premises or events to become forums or safe havens for terrorism, extremism or hate speech”. It said the commission “will not hesitate to take action within our powers where there is wrongdoing”.
But the NSS believes “the advancement of religion” charitable purpose may prevent the commission from stopping religious charities which promote extremism or hate. Over the past decade, the NSS has referred dozens of religious charities to the commission for broadcasting divisive, homophobic and misogynistic religious ideologies, but little action has been taken and the vast majority of these charities continue to operate.
The risk assessment said the commission “has continued to progress casework related to the expression of views linked to the Israel-Hamas conflict, although this has decreased compared to previous years”. It said cases “most commonly relate to charities or connected individuals expressing views alleged to support Hamas, deemed to be antisemitic or otherwise constituting hate speech”.
In 2023, the NSS referred over 40 Islamic charities to the commission over content broadcast shortly after the October 7th Hamas attack on Israel.
The commission also said it has recently opened a class inquiry into charities, many of which are Jewish religious charities, operating in illegal Israeli settlements in Palestine. The commission added that it is is “particularly aware of concerns about Iranian influence in the charity sector”.
The risk assessment said the commission’s compliance casework over the last year “has identified the need for particular care and attention by trustees and charity leaders in handling allegations related to individuals in positions of power or influence, including spiritual influence”.
It said trustees “should be aware of the risks of individuals abusing positions of trust they hold within a charity – as reflected in the Commission’s safeguarding guidance – including by virtue of holding a religious leadership position.”
Last month, the commission was forced to apologise after being found in contempt of Parliament over its handling of alleged abuse at religious charities.
NSS: Authorities should “work together to identify and close all illegal schools”
NSS head of campaigns Megan Manson said: “We welcome the Charity Commission’s recognition of the role of charities in running illegal, unregistered schools.
“We urge the commission to work to shut down any charity, religious or not, which breaks the law and undermines the safety, welfare and education of children in the process.
“We also urge the commission, the Department for Education and Ofsted to work together to identify and close all illegal schools, and ensure those responsible for operating them feel the full force of the law.”