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Department for Culture Media and Sport

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national lottery act

The National Lottery Act is an important element of the Government's reforms to the National Lottery to make it responsive to people's priorities and ensure that Lottery money goes efficiently to good causes.
 
The Act:
  • Establish the Big Lottery Fund as a single body with a new good cause and single set of simpler rules, to make it easier for potential applicants to access Lottery money.

  • The Big Lottery Fund replaced three previous distributors, the Community Fund, the New Opportunities Fund and the Millennium Commission. The resulting efficiency savings are available as additional Lottery funding for good causes.

  • Allows increased public involvement in the Lottery with distributors given the powers to consult and take account of public views in making distribution decisions.

  • Provides for a new system of allocating investment income from funds held in the National Lottery Distribution Fund for distributors. This is more transparent and should encourage lower balances by ensuring that distributors that get their balances down do not suffer a loss of investment income, and that those maintaining high balances do not benefit. More money should go to good causes more quickly.                                 
  • Ensures that the licensing and regulation of the National Lottery continues to maximise the returns for good causes.
 
Progress of the Lottery Act through in Parliament
 
The National Lottery Bill was first introduced in the House of Commons on 25 November 2004 and published on 26 November 2004. The Bill did not progress any further and, since it did not receive Royal Assent, fell when Parliament was dissolved on Monday 11 April.
 
The Bill was reintroduced in the House of Commons on 24 May 2005 and published on 25 May 2005. The Bill received its Second Reading on 14 June 2005.
 
A change has been made to the reserve power on reallocation of funds so that it cannot be used to move funds from one good causes to another. This reflects on assurance given by the Secretary of State.
 
The Bill completed its House of Commons Committee stage on 3rd November 2005. The Bill completed its Report Stage and Third Reading on 19 January 2006.
 
The Bill completed its Second Reading in the House of Lords on the 6th February 2006. Committee Stage on the floor of the House of Lords took place on the 13th March 2006. Report Stage of the Bill took place on the 24 April 2006 on the floor of the House of Lords. The Third Reading of the Bill took place in the House of Lords on 23 May 2006. Commons consideration of Lords Amendments took place on 28 June 2006. Lords Consideration of Commons Reasons took place on 11 July 2006. The National Lottery Act 2006 received Royal Assent on 11 July 2006.      
 

To view the Act, the explanatory notes and other related Parliamentary papers see the UK Parliament website.

Also available are the Regulatory Impact Assessments of the National Lottery Bill, for distribution and licensing. 
 
Background to the Lottery Act
 
Further information on the National Lottery and background to the Act can be found in the following sections:
If you have a question about the Act please email us at lottery@culture.gsi.gov.uk If a number of people ask the same question, we will put the question and the answer on this website.
 
Last updated 26 April 2007