MPs criticise National Lottery contract as profits jump while charity funding falls
2 min read
MPs have criticised ministers for the “generous” deal struck with lottery provider Camelot after figures showed its profits to have rocketed while money for good causes has gone down.
The Public Accounts Committee found the firm’s profits had more than doubled in seven years to £71m, while the amount given to good causes went up by £31m, a rise of just 2%, in the same period.
Meanwhile, donations for good causes dropped by 15% in 2016-17 compared with the previous year.
The change coincides with a public move away from traditional draws, which raise around three times more for charity, in favour of scratch cards.
MPs on the powerful committee criticised the inflexibility of the 14-year contract to run the lottery handed to Camelot by the Gambling Commission in 2012, which does not include a break clause.
The agreement means nothing can officially be done to halt the rising profits because the terms of the contract can only be changed with Camelot’s agreement.
However Chair of the Committee Meg Hillier said ministers, the Gambling Commission and Camelot needed to take joint action to save the charitable aspect from becoming unaffordable.
“Raising money for good causes is one of the founding principles of the National Lottery but this objective is under threat,” she said.
“Lessons must be learned from the renegotiation of Camelot’s licence in 2012, which was too generous to the provider and too inflexible to protect the interests of grant recipients...
“But the detrimental effects of tinkering with the format of the Lottery, and a decline in public awareness of its support for good causes, are also clear.
“There must be a renewed focus on delivering returns for good causes and action to ensure these funds can be managed in a sustainable way.
“That should include Government providing real-time data to the 12 public bodies responsible for distributing Lottery funding, to enable them to manage their programmes effectively and ensure grant commitments are affordable.”
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