By Paul McGill from NICVA
Published on 14 Sep 2005
The truth is that only £28 out of every £100 raised by the Lottery goes to charity ...
Press release for immediate use: Wednesday 14 September 2005
- Most money raised by the Lottery goes to good causes - false!
- Government takes a big chunk of Lottery money - true!
The truth is that only £28 out of every £100 raised by the Lottery goes to charity. Now that London has won the Olympics in 2012, the amount going to good causes will fall for the next seven years.
At present the government takes 12% of all the Lottery money in tax, about £570 million per year. In the longer term the voluntary and community sector believes this Lottery tax should be abolished.
As an interim measure NICVA is calling on the Chancellor of the Exchequer to cut the tax to 9% and to spend the extra 3% on good causes. National umbrella bodies for the voluntary and community sector in England, Wales and Scotland are also supporting the cut in taxation.
"The London Olympics will be a very exciting event and the voluntary and community sector will be paying part of the price," said NICVA's director of member services Paula Reynolds. "But we do not want charities to be squeezed too much and we are making this urgent appeal to the government to ease the pain over the next seven years.
"Over the past decade the Lottery has been a tremendous boost to small local projects working in new and exciting areas. Diverting some of the money now going to the Treasury would bring major benefits to the community," she said.
Ms Reynolds said the case for reviewing the 12% tax is long overdue since it had not been examined in the 11 years since the Lottery was created.
"The case is now overwhelming as Lottery funds are top-sliced to support the 2012 Olympics, which will leave a shortfall in funds for good causes. We want the games to be a success but we do not want the vital work of charities to be damaged.
"Diverting some of the tax for seven years will mean the charity sector will contribute its share but it will be a fair share," Ms Reynolds added.
Notes
At present the distribution of Lottery receipts is as follows:
- Players prizes 50%
- Cash for good causes 28%
- Lottery Duty 12%
- Retailer's Fee 5%
- Operating Costs 4.5%
- Camelot's operating profit 0.5%
For more information contact Paul McGill at NICVA, 
028 9087 7777; 0772 1746 805 (m).
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