Age UK faces further criticism on insurance deals

On Thursday, the Sun newspaper claimed the charity was earning £6m a year from recommending energy deals that were not the cheapest available.

Now the paper says Age UK earned £21.9m last year from selling insurance.

As with the promotion of energy products, the charity has denied any wrongdoing.

Deals on car insurance being promoted by Age UK did not appear to offer the best value for money, the Sun claimed.

An Age UK policy for a woman of 70 driving a 2005 Nissan Micra would cost £544, according to its website.

But Ageas, which supplies the policy, offers a cheaper deal under its Kwikfit brand, for just £371.

However, some of Age UK's other insurance deals were cheaper than rival quotes.

Conditions also vary from one policy to another.

Oversight

Age UK said its trading company, which sells insurance, hearing aids, stairlifts and funeral services, offered specially-selected products that enhanced later life.

"The proceeds are passed back to the charity, raising valuable funds," it said in a statement.

The energy regulator Ofgem and the Charity Commission said on Thursday that they would investigate Age UK's behaviour.

But speaking to the BBC, the Charity Commission said its powers were limited to examining the role of trustees.

Michelle Russell, director of investigations at the Charity Commission, said fund-raising was "self-regulating".

"Our role is about holding trustees to account, and ensuring they comply with the law - and that's exactly what we're doing," she told Radio 4's Today Programme.

But one commentator said she was surprised that the Commission's powers were so limited.

"The public has always assumed that someone - the Charity Commission - is overseeing these charities," said Harriet Sergeant, an analyst with the think tank the Centre for Policy Studies.

"We've suddenly realised they don't seem to be overseen at all."