120903 Questions and answers about the new distributor

1) What is happening?

Tessa Jowell, the Secretary of State for Culture, Media and Sport has asked the New Opportunities Fund and the Community Fund to work together to create a single new lottery distributor. Both bodies have welcomed these proposals, and they have set up a joint committee of Board Members to drive forward the transition to a new merged body.

2) Why is a new distributor being created?

The decision to create a new Distributor is part of the Secretary of State’s review of the National Lottery. The review includes other issues beyond the merger of the two organisations.

The Secretary of State issued a National Lottery Funding Decision document in July setting out her proposals for Lottery distribution. This document is the subject of a three month consultation period. In it she sets out the case for a new Distribution body which will take on the functions of the Community Fund and the New Opportunities Fund.

3) What is the timetable?

The timetable is currently under discussion, but the two organisations could form a joint interim body in the first half of 2004. The interim body could have a single Chair and Board appointed by the Secretary of State, with a single interim Chief Executive. The Department for Culture, Media and Sport, which is responsible for the National Lottery, is seeking legal advice on what the current law may allow ahead of any new legislation to create a new distributor.

4) What will the new distributor do?

The new distributor will build on the experience and best practice of both organisations to simplify funding in those areas where the two bodies currently overlap, and to ensure lottery funding provides the best possible value for money.

However, the new body is intended to achieve more than simply adding the two existing bodies together. As well as leading on good practice in funding distribution, it is likely to take the lead on joint working on a range of Lottery issues and to develop new approaches to the way we work with organisations funded by the lottery.

The new distributor will continue funding for charities and the voluntary sector and health, education and the environment, but will also take on the Millennium Commission’s ability to fund large scale regenerative projects. It will be a fund for community transformation, from smaller grants at local level through to big capital projects, intended to regenerate and revitalise communities.

The new body is likely to run a range of different types of funding programmes. Some of these will be ‘open’ grant programmes, where a wide range of organisations can apply by completing an application form. Other programmes are likely to concentrate on strategic partnership working across different sectors, funding for infrastructure and development, or opportunities for voluntary sector involvement in the delivery of community services.”

5) What are the benefits of the merger?

The main benefit is that the new structure makes more sense: it will be easier for applicants to understand how to apply and easier for the public to understand where Lottery money is being spent. The new distributor will build on the strengths and expertise of both organisations, leading to more streamlined processes and easier access for stakeholders and applicants.

We hope this will include fewer, clearer funding programmes, easier access to funding for local communities, better co-ordination with other funders (lottery and non lottery) and sensible links across programmes within the new body. Importantly it will be simpler for everyone to understand how to apply for Lottery money to benefit their community.

6) Will the new distributor be independent and its funding additional to Exchequer spend?

Of course – all Lottery funding has been, and will continue to be, additional to current and planned public expenditure. Ministers have reiterated this point on many occasions, and also emphasised that Lottery funding must provide added value.

7) What do the changes mean for existing applicants and grant holders, particularly those in the voluntary and community sector?

The new arrangements will not affect existing commitments by the New Opportunities Fund or the Community Fund.

The Secretary of State has given commitments to ensure that the percentage of Lottery funding currently available to the voluntary sector from the Community Fund is ring fenced and not affected by the changes.

8) If we want to apply for lottery money will there be a long gap before you make any new grants, while you set up the new distributor? Or will existing grant programmes continue?

We expect existing NOF programmes to be managed and delivered according to the advertised timetables, and we expect all the Community Fund open programmes to remain open during the creation of the new body. If any of this does not prove possible we will ensure we advertise any programme closure well in advance. We will also explain any transitional arrangements for funding from the new distributor.

9) How much money will the new body have to distribute?

The income available will come from the same streams of funding currently available to the Community Fund and NOF from the sale of Lottery tickets. Combined, this is 50 per cent of the proceeds for good causes, which we anticipate will be about £600- £700 million a year until 2009. The secretary of State has already guaranteed the CF and NOF funding streams up to the end of the current Camelot licence in early 2009.

10) Will the new body have offices in Scotland, Northern Ireland, Wales and the England regions?

The new body will be able to build on the English regional presence of both Funds, and on the devolved structures both have put in place in Scotland, Northern Ireland and Wales. We expect to consult further on what this will mean in terms of different funding programmes.