House of Lords - Explanatory Note
House of Lords
Session 2002 - 03
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National Lottery (Funding Of Endowments) Bill


These notes refer to the National Lottery (Funding Of Endowments) Bill
as brought from the House of Commons on 23rd June 2003 [HL Bill 81]





1.     These explanatory notes relate to the National Lottery (Funding of Endowments) Bill as brought from the House of Commons on 23rd June 2003. They have been prepared by the Department for Culture, Media and Sport, with the consent of the Lord Walpole, the Peer in charge of the Bill, in order to assist the reader of the Bill and to help inform debate on it. They do not form part of the Bill and have not been endorsed by Parliament.

2.     The notes need to be read in conjunction with the Bill. They are not, and are not meant to be, a comprehensive description of the Bill. So where a clause or part of a clause does not seem to require any explanation or comment, none is given.


3.     The key objective of this Bill is to clarify that all Lottery distributors (set out in Section 23 National Lottery etc. Act 1993) are able to distribute Lottery monies by funding endowments (including permanent endowments) - both for the purpose of establishing endowments as well as for contributing to those already in existence.

4.     The National Lottery etc. Act 1993 gives the distributing bodies power to distribute lottery money for meeting expenditure of the types specified in section 23 of that Act. It does not define 'expenditure' or contain any express reference to the funding of endowments. This Bill amends the 1993 Act to expressly permit the Lottery distributors to distribute Lottery monies by funding endowments if they so wish.


5.     Legislation relating to the National Lottery is reserved to the UK Parliament and as with the National Lottery etc. Act 1993, this Bill extends to England, Wales, Scotland and Northern Ireland.


6.     The Bill amends sections 22, 25 and 25B of the 1993 Act (which deal with the apportionment and application of monies by distributing bodies) and sections 38, 41 and 43B (which deal with the grant making powers of the statutory distributing bodies) by adding to each section that the powers of the distributing bodies includes the distribution of money for the purpose of establishing or contributing to endowments.

     7.     It also inserts into section 44 (interpretation) a reference to endowments to explain that endowments includes permanent endowments.

8.     Clause 1(9) provides for these amendments to have retrospective effect.


9.     The Bill will commence immediately on Royal Assent.

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Prepared: 25 June 2003