The government should set up an insurance scheme for charities struggling to pay rocketing premiums, a consultant for the Home Office has said.
In a paper for a departmental working group, Alison Millward recommended the government set up a body to champion charities in discussions with the insurance industry. It also suggested pooling insurance premium tax into a fund to cover premium rises.

Some charities have seen their premiums rise threefold in the 12 months from January 2002. Some have been forced to close because they cannot foot the bill.

Housing associations have also seen rises, some more than 25%.

Millward's recommendations are aimed at charities and voluntary groups, but could be an alternative to the self-insurance "captives" now being considered by associations. The captives allow associations to insure themselves.

Profits are channelled back so premiums are reduced.

The working group discussed the paper on 6 October. Millward said: "The last thing the government needs is charities closing down because of insurance."