This will be achieved in two ways:

By increasing HLF’s allocation for major projects from £20m pa to £30m pa from 2011 onwards. 

By removing, with immediate effect, HLF’s second-round submission deadline so that applicants can work to timetables that suit their project. This means that projects can work more effectively with other funders and gives applicants greater flexibility to secure partnership support. It removes batched competition at the second round, giving greater certainty of funding for projects which are progressing satisfactorily.

Projects can come back for second-round decisions at any time from now onwards, if they are ready.

Carole Souter, Chief Executive of HLF, said: “This is a first-step response to the challenging economic climate. We are setting aside additional money, when applicants might be finding it hard to raise funds elsewhere, and our applicants will have more flexibility in how they manage their projects during the tough times ahead.”

While value for money will still be important, HLF is also encouraging applicants to ask for what they really need to deliver projects – up to the current 75% funding threshold – rather than under-bidding in the hope that that will improve their chances of receiving a grant.

Currently projects are tending to bid, on average, for a contribution of less than 40% from HLF, when up to 75% funding is available. Value for money is important, but in the current climate HLF would rather be asked for a little more at the outset than see major projects falter later due to pressures on other sources of funding.

Carole Souter, continues, “We know heritage can play an important role in economic recovery and we are looking at other ways we can help our customers continue to deliver excellent projects. We are also urging any new applicants to be realistic about the amount of grant they need, given the current challenges.”

The Government is proposing* that HLF will receive a larger share of Lottery good cause money from next year which would mean a further £19m for heritage projects in 2011-12 and then £50m pa from 2012 onwards. This is over and above the increase of £25m/pa that HLF is now receiving due to increased Lottery ticket sales. 

Find out how you can apply for Heritage Grants.

Notes to editors

* The Government is currently consulting on a change in Lottery shares. The consultation is currently underway and the closing date is 21 August. Find out more about the DCMS Consultation. 

Using money raised through the National Lottery, the Heritage Lottery Fund (HLF) sustains and transforms a wide range of heritage for present and future generations to take part in, learn from and enjoy. From museums, parks and historic places to archaeology, natural environment and cultural traditions, we invest in every part of our diverse heritage. HLF has supported 33,900 projects, allocating £4.4billion across the UK. 

Further information

Katie Owen or Alison Scott, HLF Press Office on 020 7591 6036 / 07973 613 820