National Lottery Act 2006

National Lottery Act 2006

2006 CHAPTER 23

Commentary on Sections

Section 7: National Lottery Distribution Fund: apportionment

20. This section amends section 22 of the National Lottery etc. Act 1993 (“the 1993 Act”), which deals with the apportionment of money in the National Lottery Distribution Fund to the good causes, to provide that 50 per cent of all sums paid into the Distribution Fund by the licensee who runs the National Lottery (currently Camelot plc) must be allocated for prescribed expenditure that is charitable, or connected with health, education or the environment. This provision effectively creates a new good cause for the Big Lottery Fund, replacing the existing Community Fund and New Opportunities Fund good causes.

21. The Secretary of State will set out by order what is “prescribed expenditure”. New section 22(3B) will allow such an order to prescribe “devolved expenditure” – the Big Lottery Fund’s functions in relation to such expenditure will be exercised by the English, Welsh, Scottish and Northern Ireland committees set up under paragraph 7 of new Schedule 4A (inserted by Schedule 2 to the Act) and directions on the exercise of the Big Lottery Fund’s functions in relation to devolved expenditure under new section 36E(1) and (2) may only be given by the relevant devolved administration. Such an order will be subject to affirmative resolution procedure.

22. The Secretary of State plans to exercise this power, subject to consultation, to prescribe descriptions of devolved expenditure. Possible examples are expenditure on community learning, promoting community safety and cohesion, and promoting well being. The Secretary of State also plans to exercise this power to prescribe types of expenditure which are not devolved expenditure, such as transformational grants.