# Government launches call for evidence on how National Lottery good cause funding is distributed

- Link: https://fundraising.co.uk/2026/07/29/government-launches-call-for-evidence-on-how-national-lottery-good-cause-funding-is-distributed/
- Published: 2026-07-29T15:03:22+01:00
- Author: Howard Lake

**The Department for Culture, Media and Sport (DCMS) has opened a 12-week call for
evidence, _National Lottery Good Causes: Fund what matters to you_, inviting the
public and organisations to shape how good cause funding is distributed over the
next three decades.**

In her ministerial foreword, **Baroness Twycross** (Minister for Museums, Gambling
and Heritage) describes the Lottery as a national institution “belonging to all 
of us,” alongside the NHS and BBC, that has generated **over £53 billion for more
than 680,000 projects**. She argues, however, that the distribution model, largely
unchanged since 1994, “is showing its age” and remains too centralised, with decisions“
made in distant rooms” far from communities. The review is guided by three beliefs:

 * the funding belongs to the public
 * decisions should involve local people
 * and access should not be strangled by red tape.

The document celebrates the [National Lottery](https://fundraising.co.uk/tag/national-lottery/)‘
s reach since the first draw in November 1994, from London 2012 to landmarks such
as Shakespeare’s Globe and the V&A Dundee, and British films including _Billy Elliot_
and _Aftersun_. Twelve distributors, operating at arm’s length from government, 
award tens of thousands of grants annually.

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## Where the money goes

The Lottery generated **over £8 billion in revenue in 2025**, with **£1.7 billion
granted to good causes** from ticket sales.

Across the Fourth Licence, each £1 spent is expected to break down roughly as 56p
to prizes, 23p to good causes, 12p to Lottery Duty, and the remainder to retailers,
operating costs and operator profit.

Funding is split by statute across four causes: **40%** to charitable, health, education
and environmental activities (via the National Lottery Community Fund), and **20%
each** to Arts and Culture, Sport, and Heritage. Highlights from the ten-year distribution
figures include roughly **£6.23 billion via the Community Fund, £2.39 billion via
the National Lottery Heritage Fund, and around £2.36 billion via Arts Council England**.

The “additionality” principle, ensuring Lottery money supplements rather than substitutes
core state spending, is reaffirmed. Historically, the model has seen mergers and
rebrands (the [Community Fund forming in 2019](https://fundraising.co.uk/tag/national-lottery-community-fund/),
the Heritage Fund renamed the same year), the 1998 [New Opportunities Fund](https://fundraising.co.uk/2000/05/08/new-opportunities-fund-web-site-enhanced/)
for health and education, and a 2012 rebalancing back towards the original weightings.

## **What the government wants to achieve**

With Allwyn committed to doubling good cause returns by 2034, DCMS judges the conditions“
optimal” to review a system now 32 years old.

Three core objectives are set out: _**fund what’s important to you**_ (ensuring 
funding reflects national and local priorities and reaches those most in need); _**
empower your communities**_ (giving people a greater voice, and easing access for
small organisations, potentially through small and micro grants); and _**simplify
access**_ (cutting bureaucracy and harnessing technology so more money reaches communities
efficiently). The government stresses continued commitment to the arm’s-length and
additionality principles.

The **scope** is deliberately wide and UK-wide, seeking views on how funding is 
distributed, what it is spent on, and people’s experiences of accessing it, including
from those who have never benefited. DCMS is running targeted engagement alongside
the survey and will work with the devolved governments; findings will inform later
policy proposals.

## **How to respond**

The call for evidence closes at midday on 23 September 2026. Responses are open 
to those aged 16 and over. The preferred route is the [online survey](https://dcms.eu.qualtrics.com/jfe/form/SV_0AH6yzCKhHFLbTM)(
15–20 minutes, progress can be saved). Alternatively, responses can be sent by email
to [lo*****************@******ov.uk](https://fundraising.co.uk/2026/07/29/government-launches-call-for-evidence-on-how-national-lottery-good-cause-funding-is-distributed/lo*****************@******ov.uk)
or by post to the National Lottery Good Causes Team at DCMS.

 * **[National Lottery Community Fund doubles grassroots funding](https://fundraising.co.uk/2023/11/15/national-lottery-community-fund-doubles-grassroots-funding/)(
   15 November 2023)
 * **[National Lottery Community Fund opens £166 million funding stream for Scotland](https://fundraising.co.uk/2024/11/27/national-lottery-community-fund-opens-166mn-funding-stream-for-scotland/)(
   27 November 2024)
 * **[National Lottery Community Fund announces multimillion ound fund with funding focus for Northern Ireland](https://fundraising.co.uk/2024/10/02/national-lottery-community-fund-announces-multimillion-pound-fund-new-funding-focus-for-northern-ireland/)(
   2 October 2024)**