Department of Culture Media and Sport Lottery Shares Consultation

The DCMS is now consulting on plans to change how the lottery good causes money is divided between arts, heritage, sports and the Big Lottery Fund. The purpose for this is given as “the Government wishes to restore the National Lottery to its original purpose.”   NICVA is keen to hear responses on how the allocation changes will affect your organisation and the sector generally.

The DCMS consultation paper can be downloaded from: www.culture.gov.uk

Background

Presently the Big Lottery Fund receives half of the total money obtained from the National Lottery good causes allocation. The good causes allocation of the Lotto ticket price is 28%. Therefore currently, the Big Lottery Fund receives 14p out of every £1 spent on a lotto ticket*

The arts, sports and heritage sectors distribute funding via the Arts Council of Northern Ireland, Sport Northern Ireland, and Heritage Lottery Fund (HLF). At the moment they each receive approximately 16.7% of the Lottery good causes allocation or around 4.7 pence in the pound.

*currently all the distributors are also making allocations to the London 2012 Olympics and Olympic themed and online games provide the full 28% good causes allocation to the Olympic Distribution Fund.

Consultation on changing the share of good causes funding allocated to arts, sport, heritage and Big Lottery Fund was last conducted in 2006 under the Labour Government. The consultation did not result in any changes.

What is Planned?

Under plans from the coalition government the apportionment to good causes will change to 20% to each cause of arts, sport and heritage with the remaining 40% allocated to the Big Lottery Fund.

In return for the cut of 50% to 40% for Big Lottery Fund the government is planning for 100% of Big Lottery Fund funding to be committed to the voluntary and community sector only – however, this is not outlined in the Draft Order under consultation but contained as a commitment in a letter from the Minister, Jeremy Hunt.

The changes in apportionment will be introduced in two phases: from 1 April 2011 proportions to Arts Council, Sport NI, HLF will change to 18% and then on 1 April 2012 proportions will change to 20%.

Big Lottery allocation will change from 50% to 46% on 1 April 2011 and then to 40% on 1 April 2012

Implications of the change

The current spending plans of the Big Lottery Fund will be affected by the reduction in income over the period to 2012 and beyond. This will have a direct and negative effect on the funding to the voluntary and community sector.

There are no commitments in the allocations to arts, sports and heritage on the proportion of funding that will be spent in the voluntary and community sector.

Questions

NICVA is keen to hear responses from its members on the plans to change the lottery good causes allocations.

1. Do you agree with the changes in allocations and the timing of the allocation changes?
2. What are the advantages and disadvantages in the proposed changes?
3. Do you have any concerns about the increase in allocations to the Arts Council, Sport NI or Heritage Lottery Fund?
4. Do you have concerns about the decrease in funding allocated to the Big Lottery Fund?
5. What assurances would you like to receive on the level of funding received by the voluntary and community sector from the National Lottery in relation to funding allocation to the Big Lottery Fund and the other lottery distributors?

NICVA would appreciate responses by 1 August 2010 to provide time for consideration, possible follow up conversations and drafting the NICVA response before the consultation formally closes on 21 August 2010.

Responses to NICVA should be directed to neil.irwin@nicva.org.