The Charity Commission has issued two Church of England Dioceses charities with an official warning following an investigation into safeguarding failures.

The warnings have been issued to the Liverpool Diocesan Board of Finance and The Chelmsford Diocesan Board of Finance, which assist and promote the work of the Church of England in the two cities.

The regulator said the warnings have been issued due to “failures to handle safeguarding allegations in line” with its guidance and trustee duties. This includes ensuring charities take “reasonable steps to protect from harm all those” who encounter them.

Concerns were brought to the regulator last year amid allegations about the behaviour of the then Bishop of Liverpool John Perumbalath towards two adults. He subsequently resigned and maintains “no wrongdoing had occurred”, said the Commission.

Concerns were also raised about safeguarding processes at the Chelmsford charity in relation to its handling of a concern in 2023 about the conduct of Perumbalatth, who is also a former Bishop of Bradwell, which is in its the city's diocise.

The Commission said that its investigation into both charities last year found “there was a failure to properly handle safeguarding allegations and to maintain appropriate oversight of safeguarding by the trustees”.

Mismanagement

The failures at both charities amounted “to mismanagement” in their administration, according to the regulator.

“In both instances, due to lack of appropriate procedures and processes, those trustees who knew of the allegations failed to take action that would have allowed the trustee boards to fully consider any risks and make a decision on the appropriate action to take,” it added.

“While the Commission recognises the need for sensitive handling of serious allegations among large trustee bodies, the Commission found there were insufficient processes and procedures in place to ensure adequate oversight of safeguarding and protection of those who come into contact with the charity."

Both charities must now ensure they improve their safeguarding processes, and trustees must delegate responsibility for protecting people to individuals or sub groups, backed by “robust policies and procedures for reporting appropriate information”.

Charity Commission chief executive David Holdsworth said: “Churches and cathedrals play a valued role in communities across the country, with devoted volunteers and clergy making a positive impact in countless ways.

“As separate charities, diocesan boards perform a distinct but important role, and their actions can have a wide-reaching impact on other Church charities.

“In the two diocesan charities, lack of appropriate policies and procedures led to a failure to ensure that serious allegations against a senior figure were properly considered by the relevant trustee bodies. We will further engage with both charities as they continue to take steps to address our concerns.”

He added: “More widely, trustees must be able to effectively challenge the behaviour of powerful individuals, including where that power derives from spiritual leadership.

“This underlines the need for adequate reporting mechanisms back to all trustees when safeguarding responsibilities are delegated to smaller groups or individuals, so that trustee boards can fulfil their collective duty to help keep people safe.”

Mixed response from charities

In a statement the Liverpool Diocesan Board of Finance said it accepted the Commission’s findings and apologised "for the shortcomings identified”.

“We have already made changes to strengthen reporting and governance processes, and we commit to ongoing learning, accountability and continuous improvement,” adds the statement.

“The Diocese of Liverpool is dedicated to ensuring that the church is a safe and inclusive environment where concerns can be raised in a culture of accountability, transparency and compassion.”

However, the Chelmsford Diocesan Board of Finance, said “we respectfully disagree with some of the Charity Commission’s conclusions and are disappointed by the decision to issue an Official Warning, which we believe was disproportionate”.

It’s statement added: “We are aware of the potential impact the publication of this Official Warning may have on both the complainant and Bishop John, who has always denied the allegations against him. We have ensured that both of them have been offered support.

“We want to reassure all those who are victims and survivors that safeguarding is a priority in all our work and we are committed to keeping people safe across the Diocese of Chelmsford."

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