The Big Lottery Fund (BIG) – the largest distributor of National Lottery good-cause funding – is to pump a multi-million pound package of funding into communities to help them cope with the effects of the recession, it was  announced today.

An additional £43 million is to be invested across the UK to tackle the longer-term effects of the recession on the UK’s communities. BIG is working closely with stakeholders to determine what form the support will take, but it is thought it could include targeted funding for specific services such as debt advice and support to help train increasing numbers of volunteers.

Responding to the increasing pressure facing the Voluntary and Community Sector (VCS), BIG has also reprioritised and refocused its portfolio and increased the budgets of some of its most popular programmes this year, to the tune of around £45million. All these adjustments have been made to help get funding fast to where VCS voices are saying it is needed most.

The move includes a £20million increase in Reaching Communities (England), a programme through which VCS organisations can access up to £500,000 for up to five years. A £7.2 million boost to the BASIS programme will help build capacity in the sector.  

Peter Wanless, Chief Executive at the Big Lottery Fund, said: “I am very aware of the tough times communities are experiencing and the increased demand this is inevitably placing on the voluntary and charitable sector. While there are some reports that the recession may be easing, we know that the full impact on the UK’s communities is still working its way through, impacting on homes across the nation, bringing family breakdown, mental illness, unemployment and personal debt.

“The BIG Lottery Fund aims to work as an intelligent funder and we are responding to this critical time with a substantial package of support designed to reach those that need it most. Right now, the last thing the Sector needs from us is another targeted fund with its own eligibility criteria, rules and procedures. By channelling more money through our existing funding streams, we can respond immediately to the increasing demand from local groups and organisations coping with the crunch. We are also using the close working relationships we have with experts out there to identify how we can effect distinct and additional support to recession-hit communities in ways that won’t otherwise take place.”

Today’s investment responds to evidence from voluntary sector bodies that the recession is putting severe pressure on the UK’s voluntary and community groups. According to research compiled by NAVCA**, the national voice of local third sector infrastructure in England, demand for services is up 30-50 per cent in some geographical areas - and resources, such as income and staff, are under strain.

The investment has also been informed by BIG’s recent consultation, Big thinking, which asked stakeholders and the wider public how BIG’s estimated budget for new funding programmes of around £2.8 billion should be spent over the next six years [between 2009-2015]. Big thinking attracted around 3,500 online survey responses and involved a further 3,000 people at events across the UK.

A key difference in BIG’s approach will be an enhanced UK-wide target that at least 80 per cent of funding goes directly to the Voluntary and Community Sector between 2009-2015. A range of other factors that will determine BIG’s approach to funding through to2015 are contained in BIG’s Strategic Framework, published today www.biglotteryfund.org.uk/bigthinking

Sir Clive Booth, Chair of the BIG Lottery Fund said: “BIG Thinking was the most open consultation process the Big Lottery Fund has ever had. We’ve listened to what our stakeholders said and have incorporated that feedback to develop our Strategic Framework document. From this starting point, we will develop our funding programmes to distribute good-cause funding over the coming years that will make a lasting impact on the lives of communities and people in need throughout the UK.”

Further Information

BIG Lottery Fund Press Office: 020 7211 1888
Out of hours contact: 07867 500 572
Public Enquiries Line: 08454 102030
Textphone: 0845 6021 659

Full details of the Big Lottery Fund programmes and grant awards are available on the website: www.biglotteryfund.org.uk

Notes to Editors

• The Big Lottery Fund (BIG), the largest distributor of National Lottery good cause funding, is responsible for giving out half the money raised for good causes by the National Lottery. In the five years since BIG’s inception in June 2004 BIG has supported communities with more than £2.8 billion invested in 89,000 projects across the UK.
• BIG is committed to bringing real improvements to communities and the lives of people most in need and has been rolling out grants to health, education, environment and charitable causes across the UK since June 2004. The Fund was formally established by Parliament on 1 December 2006.
• Since the National Lottery began in 1994, 28p from every pound spent by the public has gone to good causes. As a result, over £23 billion has now been raised and more than 317,000 grants awarded across arts, sport, heritage, charities, health, education and the environment.
• **Source: Crunch Time – Prepared for NAVCA by Perfect Moment, 9 June 2009.
• Under Reaching Communities, the Big Lottery Fund awards grants between £10,000 and £500,000 to projects that offer people better life chances, build stronger communities, develop improved rural and urban environments and improve health and well being
• BASIS is the first Big Lottery Fund programme to focus solely on developing voluntary and community sector infrastructure. The scheme aims to fund a more expert, consistently available and sustainable set of support services for front line voluntary and community organisations across England.
• Big Lottery Fund’s Awards for All programme aims to help improve local communities and the lives of people most in need. A total of £45 million is available in England offering Big Lottery Fund grants of between £300 to £10,000 to grassroots groups in the community and voluntary sector, health bodies, schools and parish or town councils.
• YPF2 Local Grants aims to improve young people's lives across England by increasing their involvement in designing, running and reviewing the services they use.