TORY ministers have been accused of attempting to gag charities by banning publicly funded bodies from speaking out against government policy.

Cabinet Office minister Matthew Hancock slapped strict new rules at the weekend on the way campaigning NGOs spend government grants.

A new clause to be inserted into all new and renewed grant agreements stipulates that the funds cannot be used to lobby or campaign against government decisions.

Mr Hancock insisted that they did not prevent organisations using privately raised funds for political campaigning.

The clause is being implemented following a campaign by the right-wing Institute for Economic Affairs, which was credited in the Cabinet Office’s announcement.

IEA spokesman Christopher Snowdon welcomed the plans as “very good news for taxpayers who will no longer be forced to pay for the government to lobby itself.”

But shadow minister for civil society Anna Turley said: “This is an outrageous attempt to further curb the independence of charities and restrict their ability to speak out on issues of failing government policy.”

And National Council for Voluntary Organisations chief executive Stuart Etherington warned the “draconian” policy could charities from raising concerns about the treatment of vulnerable groups with MPs.

“This is tantamount to making charities take a vow of silence and goes against the spirit of open policy-making that this government has hitherto championed,” he said

Health select committee chairwoman and Tory MP Sarah Wollaston also expressed concern over the policy, which will be implemented without any debate in Parliament.

She said ending charities’ ability to lobby ministers would have “serious consequences” for public health, warning the “balance (is) already distorted in favour of industry.”