The Government has amended the National Lottery Bill so distributors will be forced to explain how their policies ensure their grants are additional to government expenditure.
The amendment was moved by Lord Davies of Oldham, the Government's lottery spokesman, during the Bill's third reading in the Lords yesterday. It will compel distributors to set out policies "in relation to the principle that proceeds of the lottery should be used to fund projects for which funds would be unlikely to be made available by a government department".
Davies proposed the changes after pressure from opposition MPs and voluntary bodies to put an additionality reporting requirement into the Bill.
However, the NCVO has raised concerns about the scope of the amendment.
"This amendment makes no mention of funding from local authorities or other sub-national bodies such as primary care trusts," it says in a briefing.
Conservative peers have also resurrected an amendment first tabled by Mark Field, shadow culture minister, that would loosen government control over the Big Lottery Fund.