Ministers announce Lottery shake-up

Lottery players are to be given the power to vote on how their money should be spent in a major shake-up of the game announced by ministers today.

Culture Secretary Tessa Jowell was unveiling plans to set up mini-referendums on grants up to £10,000 which would see communities decide which projects should win cash.

She pledged to give the Lottery "back to the people" as she unveiled a White Paper heralding sweeping changes.

Camelot is to lose its monopoly to run the game when its licence ends in 2009. New plans could see one operator run main weekly draws while others take charge of scratchcards and new games played online or using mobile phones.

The shake-up has been ordered to address slumping ticket sales, which are now £20million a week lower than at the game's height in 1998. It is thought many players have been put off the game because of the perception that their money is squandered on undeserving projects.

Today's proposals would replace the two most controversial awards bodies - the Community Fund and New Opportunities Funds - with a body made up partly by members of the public. It would have an annual " budget" of £500million.

In each borough of London it could mean that residents will be able to vote on where Lottery funds are spent, from a face-lift for the town hall to new sports facilities in schools.

Players could also "tick" boxes as they fill in their numbers to outline which charities they would like their money to go to.

Other methods could include telephone voting in a system similar to the one used in Channel 4's Big Brother.

Ms Jowell said: "I want [ distributors] to work with their local television, radio and newspapers to put real choices to the public and ask them to decide. I want citizens' panels to be set up across the country to advise Lottery distributors on how to make choices." For every £1 spent on the Lottery, 28p goes to charity and the rest is spent on tax and the running of the game.

Michael Grade, Camelot chairman, today unveils plans for 10,000 buildings in receipt of Lottery cash to display a cross-fingered plaque on their walls so that the public are aware where money is being spent locally.

In a speech this afternoon he is due to say that the public should know where their money has been spent.

"There's all too often the same total absence of any sign that the funds came from the National Lottery," he will say.

This must be wrong for two reasons: first, the public has a right to know how and where its money is being spent and, second, it can only benefit and strengthen the Lottery if positive connections are made between it and the vast majority of non-contentious grants it funds every year." However, charities fear that today's announcements could hurt many worthy but less popular causes.

Stephen Bubb of the Association of Chief Executives of Voluntary Organisations, said: "How can people choose fairly? It would be very sad if low-profile charities dealing with less popular causes such as mental health lost out. Over 100,000 organisations have benefited so far, will they still or will it just go to a big few?"