Charities will be able to claim top-up payments on up to £5,000 of small donations without needing Gift Aid declarations, under changes announced in The Queen's Speech.

The Gift Aid Small Donations Scheme will boost the income of charities and reduce their administrative burdens as they will not have to collect Gift Aid declarations on all small donations.

From April 2013, charities will be able to claim the Gift Aid-style top-up payments from HM Revenue and Customs (HMRC) without needing to get a Gift Aid declaration from donors.

The top-up payment will be 25p for every pound collected in the United Kingdom, on up to £5,000 of donations, where the individual donations are £20 or less.

Chloe Smith, Economic Secretary to the Treasury, said:

"This scheme will be particularly helpful for small charities that rely on bucket collections, which can find it impractical to get the necessary paperwork that Gift Aid requires. Charities and Community Amateur Sports Clubs will now be able to claim a Gift Aid-style payment on small donations without the need to collect donors' details."

HMRC is consulting on the final policy until 25 May.