A York professor of charity studies has warned MPs and Lords that charity regulation in England and Wales is in crisis and urged major changes to charity law.

Gareth Morgan was among witnesses called to give evidence to a joint select parliamentary committee which is looking into the issue.

The Government is planning a new law to regulate the way charities are run and to prevent them using their money for terrorists.

But Professor Morgan, who lives in York, and heads Sheffield Hallam University's Centre for Voluntary Sector Research, told the committee the proposed law was only "tinkering around the edges" and that though he broadly approved of its approach, he said it needed to have a wider scope.

He called for a comprehensive "Regulation of Charities Bill" with a more joined up approach to the use and abuse of charitable gifts and properties, currently patrolled by the Charity Commission, and charity tax issues such as the use of "charities" for tax avoidance and evasion, currently patrolled by HM Revenue and Customs.

In a discussion at the House of Lords about the commission, he said: "The problems of charity regulation in England and Wales are much wider than the question of the Charity Commission's powers. There are many provisions in charity law that are already on the statute book but not yet implemented which could be brought into effect without new primary legislation.

“There are also other issues that need urgent attention, such as the large numbers of charities which are currently excepted or exempt from registering with the Charity Commission.”

“Additional resources are clearly needed for the Charity Commission and I do agree with the proposal that, if necessary, charities should be prepared to pay something towards the Charity Commission's services.”

The proposed law includes measures to disqualify people from acting as charity trustees, make trustees stand down, force trustees to close down charities after an inquiry decides they cannot be operated properly, and powers to give charities formal warnings.

The joint selection committee on the draft protection of charities bill will publish its report in early Spring.