Recommendation 23

HM Government Acknowledged

The Government welcomes the Committee’s support for the proposed structure and governance of the statutory levy. As we set out in the consultation, we believe that the statutory levy should aim to provide independent, sustainable funding for research, prevention (broadening out the existing education strand) and treatment, ensuring that it is directed where it is needed most without disproportionately impacting the sustainability of gambling businesses. It is a priority for the Government that the statutory levy system delivers improved transparency for funding directed to RPT while avoiding the creation of arrangements which are overly burdensome or convoluted. As such, governance arrangements will play a key role in future funding arrangements and we will ensure that governance structures and processes deliver on our aims to guarantee the levy system remains in line with the statutory framework. It is a priority for us to provide sufficient and effective government oversight, and ensure that the priorities for the distribution of levy funding are led by an ongoing assessment of the evidence of what works and where funding is needed most. Section 123 of the Gambling Act 2005 is clear that the levy will fund projects related to (a) addiction to gambling, (b) other forms of harm or exploitation associated with gambling, or (c) any of the licensing objectives. The Gambling Commission will collect the levy. Such projects may be undertaken, with the consent of the Treasury and of the Secretary of State, either by the Gambling Commission itself and/or through the provision of financial assistance to other bodies (including other public sector bodies) who are undertaking projects connected to the purposes above. As such, the levy is statutorily ring fenced for specified gambling-related purposes and we propose that funding is used, under the strategic direction of the government, for projects and services in line with the statutory framework. However, given the statutory purposes for which levy funding can be used are broadly conceived, it is important to allocate funding in a way which minimises disruption and aligns with projects and services currently being delivered to tackle and treat gambling-related harms, which we want to improve and expand in the future. As such, we propose levy funding will be directed to the more specific categories of research, prevention and treatment, in line with the statutory framework and agreed with the Gambling Commission, to make the most effective and impactful use of the available funding. Further, the legislation sets out a clear enforcement regime for the levy. Section 123 also states that the levy is to be administered by the Gambling Commission and provides that a failure to pay the levy will be enforced in the same way that a failure to pay the annual licence fee is enforced; i.e. through revocation of the operating licence. We have also always been clear the industry will have no say over the distribution of funding to put the independence of the system beyond doubt. This guarantee of independence supports our aim to improve the integration (and level of access) of treatment services across the NHS and the third sector. Based on the Health Survey for England, the number of people experiencing ‘problem gambling’ is between 155,907 and 335,361. The latest available data for Great Britain is from 2016 which estimated between 250,000 and 460,000 adults were classified as ‘problem gamblers’. While we do not have official statistics on treatment access given the lack of integration between statutory and third sector-delivered treatment, the evidence shows that treatment access among those experiencing ‘problem gambling’ is low, and likely significantly lower than for alcohol and drug abuse, where 18% of dependent drinkers, and 47% of opiate and crack cocaine users are in treatment. The levy will allow the development of an integrated and comprehensive treatment system across Great Britain in the coming years to ensure there are established referral pathways between NHS and third sector provided services, so that we have a ‘no wrong door’ approach for those experiencing gambling harms and that we can ensure those who need treatment are able to access it earlier in their journey. Separately, the National Institute for Care Excellence (NICE) is developing clinical guidelines to support the identification, assessment and management of harmful gambling to ensure clear and robust standards are in place for the treatment of gambling-related harms. The Government also welcomes the Committee’s call for measurable targets for harm reduction. As set out in the government’s public consultation on the statutory levy, we are clear that the levy represents a significant transformation for the RPT system and will no doubt evolve over time as evidence of the needs of the public and demands on the system become clearer. However, it is important that the government has clear strategic objectiv