Big Lottery Fund share of good cause money will be reduced to 40 per cent in September

Arts, sports and heritage organisations will together get 60 per cent of lottery money, Department for Culture, Media and Sport confirms

The voluntary and community sector’s share of lottery ‘good cause’ money will be reduced from 50 per cent to 40 per cent in September, the government has confirmed.

The Department for Culture, Media and Sport’s structural reform plan, published yesterday, says plans to allocate 60 per cent of lottery 'good cause' money to arts, sports and heritage organisations, and 40 per cent to the Big Lottery Fund, will be enacted by a statutory instrument in September.

Arts, sports and heritage organisations currently have a combined 50 per cent share of the funding. Some of this funding is given to charities.

The structural reform plan also says the government will tell the Big Lottery Fund by September that it must stop funding "politicised projects", and will ask all lottery distributors to reduce their administrative costs to 5 per cent of their total income. The government will agree cost-cutting plans by December, the document says.

A consultation on the proposal to award 60 per cent of ‘good cause’ money to sports, arts and heritage groups is open until 21 August. But a DCMS spokesman said the sector was supportive of the move and it was "highly likely" to go ahead. He said the change would give an extra £50m each a year to those groups.

Asked about the 5 per cent administration target, Peter Wanless, chief executive of the Big Lottery Fund, said: "We are in discussions with the department about the issues and implications that follow from that. Obviously there’s a risk that it could lead to us allocating fewer, bigger grants."

On the changes to the projects that the BLF could fund, he said: "There have been occasions on which a strong improvement to society was achieved through funding going down the statutory route."

Kaye Wiggins recommends

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