Industry sources have warned Research, Education and Treatment (RET) organisations that did not receive new funding from the Office for Health Improvement and Disparities (OHID) may face closures and redundancies.
OHID’s funding decisions, which were delivered earlier this week, saw the statutory levy allocated to successful applications, with a total of £25m dished out for use over the next two years.
However, sources have indicated that several organisations – including smaller bodies, some which have been running for several years and had previously received backing under the GambleAware model – did not receive any funding and now face the prospect of redundancies or even shuttering their services.
Experts have expressed concerns around a talent and knowledge leak from the support sector as some organisations close.
GambleAware, which is due to close its doors at the end of March, had served as the commissioning body under the previous voluntary levy scheme, which saw licensed operators voluntarily donate a portion of GGY to RET organisations.
OHID became the commissioner for the statutory levy last year, replacing GambleAware in the role when the levy was under a voluntary basis.
Those organisations which have been awarded funds have until the week commencing March 23 to review and accept the proposals from OHID.
Some industry sources have indicated to EGR they expect organisations that previously worked outside of the gambling-related harms sector to be recipients of the new funding.
In a letter penned by the OHID and seen by EGR – titled ‘Gambling harms prevention: progress update’ – the body confirmed £25m of the funding has been allocated and alluded to those that had missed out.
The letter reads: “We received a high volume of applications to the grant and would like to thank all organisations who took the time to time to apply, reflecting the strong commitment and expertise across the sector.
“The broad range of funded prevention activity will play an important role in building our shared understanding of what effective gambling harms prevention looks like.
“We fully appreciate that some applicants will be disappointed by the outcome of the application process. We want to reiterate that all funding decisions were made following an independent assessment against published criteria.
“Insights from this round will help shape future approaches and inform any potential future funding opportunities.
“We anticipate further funding will likely be available in year [two] of the transition period. Further information will be communicated in due course.”
Sources indicated those organisations that were unsuccessful are also barred from taking industry donations directly from operators.
It has been highlighted that operators in the UK being faced with the new statutory levy, plus the incoming tax hikes from April, means extra funding will be hard to come by.
Some of the industry figures EGR spoke to were critical of the approach of the OHID, which has been previously slammed for its role in the new statutory levy system.
But others pointed to similar instances under the previous GambleAware regime, where some organisations received funding and others didn’t.
EGR has contacted OHID for comment.
With additional reporting from Kadeem Simmonds, Nosa Omoigui and Louis Altmann.
The post Exclusive: Statutory levy decisions leave RET organisations facing closure first appeared on EGR Intel.
EGR understands funding decisions could results in closures, while experts suggest bodies that did not operate under previous GambleAware model will enter the space
The post Exclusive: Statutory levy decisions leave RET organisations facing closure first appeared on EGR Intel.