The Charity Commission has announced plans to increase its support for faith-based charities.

The regulator will launch a new Faith and Social Cohesion Unit to encourage faith groups to register as charities and "improve their effectiveness" by working to strengthen their governance and accountability, the Charity Commission said.

"Many faith-based organisations do not realise they have the potential to register and gain the benefits of charitable status," said Dame Suzi Leather, Chair of the Charity Commission.

A number of Christian places of worship and some Christian charities which were previously exempt from registration will now have to register after the Charities Act 2006 made changes to the existing rules.

Dame Leather said the new team would work within faith communities to "promote awareness of the need to register, of good governance requirements, and of the Commission's role as the independent regulator".

The unit will focus on providing support and advice to faith groups through outreach work, capacity building and training, and the issue of a number of publications and guidelines.

Funding for the unit will be provided by the Department of Communities and Local Government.

Dame Leather said the announcement from the DCLG that it would provide the funding for the unit "recognises that the Charity Commission has an essential part to play in building community cohesion and tackling extremism by supporting faith-based charities, both in strengthening their governance and in promoting the valuable contribution they make to society.

"This new unit will allow us to continue and develop our work with faith based charities to promote good practice and provide specialist advice, guidance and training to trustees."

The unit will work initially with Muslim charities and communities before expanding to other faith communities in the future.

The Charity Commission has recently come under scrutiny from the Lawyers' Christian Fellowship after the Charities Act 2006 removed the legal presumption that faith-based groups provide a "public benefit" - a requirement for an organisation to gain charitable status and the associated benefits.

"It is concerning that it will be up to the Charity Commission to decide whether they think Christian groups are providing public benefit," the LCF said.

"Certain groups, such as those dedicated to evangelising people of other religions, or street preaching, could well be rejected."

A consultation is currently underway on the draft Government guidance on the issue of charitable status.