Subsidy control
We are a public body and the largest funder for the UK’s heritage.
As The National Lottery Heritage Fund, we distribute National Lottery grants from £3,000 to £10million and over, funding projects that sustain and transform the UK's heritage.
As the Heritage Fund, we distribute non-Lottery funding, including grant in aid/government funding and loans, to heritage organisations.
The Subsidy Control Act 2022
Since the UK left the European Union on 1 January 2021, the UK government has enacted domestic legislation to replace EU law: the Subsidy Control Act 2022 (‘the Act’).
The Act aims to control the provision of subsidies – it prevents unfair competition or effects on trade and investment. This might happen if an organisation receives funding from state resources (which includes our funding, as our funds are public money) while another organisation can only use their own private funding.
You should familiarise yourself with the requirements of the new subsidy control regime when considering applying to us.
The Act will be fully in force from 4 January 2023. The Department for Business, Energy and Industrial Strategy (BEIS), has issued draft guidance on the operation of the Act. This guidance helps public authorities, such as the Heritage Fund, to award subsidies in a way which minimises any negative effects on competition and investment, as well as promoting the effective and efficient use of public money. These subsidies are permitted provided they satisfy the criteria set out in the Act.
Subsides above a certain financial threshold (currently £100,000) must be published on both our own website, and on a database held by BEIS.
Smaller grants may be outside the scope of the Act if they are not considered to be a subsidy. For example because they are unlikely to have an impact on trade or investment.
What is a subsidy?
There are four key characteristics which must all be present for funding to be classed as a subsidy:
- a financial contribution
- given by a public authority from public funds
- given to an organisation giving them an economic advantage that is not available on market terms
- affects or is capable of affecting competition or investment within the UK, or trade or investment between the UK and a country or territory outside of the UK
If our funding meets all four key characteristics, then it will be a subsidy. For a subsidy to be permitted it has to comply with seven common principles as set out on the UK government website.
EU State Aid Law
The previous EU state aid law will still apply to some grants awarded before 31 December 2020, and there may be additional considerations to take into account in Northern Ireland.
UK state aid guidance can be found on the UK government website.
Subsidy Control information in relation to grant to The Seachange Trust
Date of grant: 20 September 2023
Reference: NL-23-00009
Grantee: The Seachange Trust
Category of beneficiary: Small and Medium Sized Enterprises
Subsidy amount: £1,968,061
Legal basis of subsidy: The Trustees of the National Heritage Memorial Fund (the body corporate which operates The National Lottery Heritage Fund) has statutory power to award grants under the National Heritage Act 1980 and National Lottery Act 1993.
Policy objective: National Lottery Grants for Heritage is our open programme for all types of heritage projects in the UK. A funding programme for projects that connect people and communities to UK-wide, regional and local heritage. Made possible thanks to National Lottery players.
Purpose of the subsidy: To enable Out There Arts (The Seachange Trust) to complete the repair, restoration and fit-out of the Ice House as part of a wider package of funding, bringing the building into public use for the first time.
Eligibility for the subsidy: The National Lottery Heritage Fund will inspire, lead and resource sustainable, thriving UK heritage. Applicants had to be charities, not-for-profit or public sector organisations.
Basis for subsidy calculation: The project costs as set out in the grantee’s application and assessed and verified by Heritage Fund staff and the specially convened delegated decision panels.
Project summary: This project will repair and restore Great Yarmouth’s historic Grade II Listed Ice House, the last example of its kind in the UK. The building will become multi-use cultural venue: a centre of excellence for Outdoors Arts and Circus creation, training and delivery, accessible community hub, 650-person event venue and riverside café/bar/terrace space. A Heritage Learning and Creative Community Engagement Programme will be delivered in tandem with the capital works, with particular benefit for the communities surrounding the Ice House.
Subsidy Control information in relation to grants to Red Rose Chain
Date of grant: 31 May 2023
Reference: NM-22-01063
Grantee: Red Rose Chain
Category of beneficiary: Small Enterprise
Subsidy amount: £232,882
Legal basis of subsidy: The Trustees of the National Heritage Memorial Fund (the body corporate which operates the Heritage Fund) has statutory power to award grants under the National Heritage Act 1980 and National Lottery Etc Act 1993.
Policy objective: National Lottery Grants for Heritage is our open programme for all types of heritage projects in the UK. A funding programme for projects that connect people and communities to UK-wide, regional and local heritage. Made possible thanks to National Lottery players.
Purpose of the subsidy: The project facilitates free access to heritage and drama workshops for multiple underserved groups that would otherwise struggle to participate.
Eligibility for the subsidy: The National Lottery Heritage Fund will inspire, lead and resource sustainable, thriving UK heritage. Applicants had to be charities, not-for-profit or public sector organisations.
Basis for subsidy calculation: The project costs as set out in the grantee’s application and assessed and verified by Heritage Fund staff and the specially convened recommendation and decision panels.
Project summary: This three-year project (September 2023 to August 2026) in Ipswich, Suffolk, uses Anglo-Saxon myths to hold theatre-themed heritage workshops, create new learning and digital resources, and create new professional and community drama productions. Workshops will research, consider and re-interpret Anglo-Saxon myth, with some groups creating community productions. Groups will also contribute to an exhibition and the creation of an online resource about the Anglo-Saxons.
The grantee’s regular programme engages young people and people living with disabilities in free theatre workshops (informed by heritage themes and learning). Workshops are also provided for life-prisoners, schools in deprived wards, and asylum seekers.
Subsidy Control information in relation to grants to Ironbridge Gorge Museum Trust
Date of grant: 12 May 2023
Reference: NM-22-01000
Grantee: Ironbridge Gorge Museum Trust (IGMT)
Category of beneficiary: Small and Medium Sized Enterprises
Subsidy amount: £250,000
Legal basis of subsidy: The Trustees of the National Heritage Memorial Fund (the body corporate which operates the Heritage Fund) has statutory power to award grants under the National Heritage Act 1980 and National Lottery Etc Act 1993.
Policy objective: National Lottery Grants for Heritage is our open programme for all types of heritage projects in the UK. A funding programme for projects that connect people and communities to UK-wide, regional and local heritage. Made possible thanks to National Lottery players.
Purpose of the subsidy: To enable IGMT to increase reach into local communities and build its organisational resilience. This will support them to protect and maintain their portfolio of 49 buildings and structures across the Ironbridge Gorge World Heritage Site.
Eligibility for the subsidy: The National Lottery Heritage Fund will inspire, lead and resource sustainable, thriving UK heritage. Applicants had to be charities, not-for-profit or public sector organisations.
Basis for subsidy calculation: The project costs as set out in the grantee’s application and assessed and verified by Heritage Fund staff and the specially convened recommendation and decision panels.
Project summary: IGMT intends to increase its medium to longer term financial resilience by commissioning an external review of its financial model, investing in its fundraising department to increase capacity, and commissioning a segmentation analysis. IGMT also intends to increase reach into local communities by funding a post to develop and implement a strategy for increasing breadth and diversity of audiences.
Date of grant: 24 January 2023
Reference: NM-22-00712
Grantee: Iron Bridge Gorge Museum Trust
Category of beneficiary: Small to Medium Enterprise
Subsidy amount: £250,000 (Grant awarded)
Legal basis of subsidy: The Trustees of the National Heritage Memorial Fund (the body corporate which operates the Heritage Fund) has statutory power to award grants under the National Heritage Act 1980 and National Lottery Etc Act 1993.
Policy objective: To safeguard nationally important heritage assets within England which were at risk as a direct result of COVID-19.
Purpose of the subsidy: As part of an ongoing package of grant funding, the project will help IGMT move beyond the financial challenges exacerbated by COVID-19 and severe flooding over recent years.
Eligibility for the subsidy: Applicants had to be charities, not-for-profit organisations, or public sector organisations. The heritage asset had to be of outstanding importance to the national heritage and at risk.
Basis for subsidy calculation: The project costs as set out in the grantee’s application and assessed and verified by Heritage Fund staff and the specially convened recommendation and decision panels.
Project summary: As part of an ongoing package of grant funding, the project will help IGMT move beyond the financial challenges exacerbated by COVID-19 and severe flooding over recent years. Addressing repairs and maintenance in a comprehensive programme will enable the Trust to continue their operation, rather than ‘firefighting’ and focusing only on overdue urgent repairs or safety issues. This project will support essential maintenance costs focusing on areas of planned and reactive maintenance and salary costs of existing staff. This is time-limited funding on a Full Cost Recovery basis to support the organisation in reaching a more sustainable position (both in terms of organisational capacity and the condition of the heritage assets) following a period of significant challenges.
Date of grant: 1 February 2022
Reference: MF-21-00078
Grantee: Ironbridge Gorge Museum Trust (IGMT)
Category of beneficiary: Small and Medium Sized Enterprises
Subsidy amount: £9,974,353
Legal basis of subsidy: The Trustees of the National Heritage Memorial Fund (the body corporate which operates the Heritage Fund) has statutory power to award grants under the National Heritage Act 1980.
The Cultural Assets Fund was administered by the Heritage Fund, who distributed grant in aid monies (with funds provided by DCMS as part of the government’s wider Culture Recovery Fund) to support any heritage asset which is of outstanding importance to the national heritage and was at risk due to the impact of coronavirus (COVID-19).
Policy objective: To safeguard nationally important heritage assets within England which were at risk as a direct result of COVID-19.
Purpose of the subsidy: To safeguard, through enabling repair and conservation, a portfolio of 49 buildings and structures across the Ironbridge Gorge World Heritage Site, and to provide an endowment to enable the grantee to return to financial viability and operate post-pandemic.
Eligibility for the subsidy: Applicants to the Cultural Assets Fund had to be charities, not-for-profit organisations, or public sector organisations. The heritage asset had to be of outstanding importance to the national heritage and at risk due to the impact of COVID-19.
Basis for subsidy calculation: The project costs as set out in the grantee’s application and assessed and verified by Heritage Fund staff and the specially convened recommendation and decision panels.
Project summary: IGMT will use the subsidy funding to address a conservation repair backlog for 49 buildings and structures across the UNESCO World Heritage Site in Shropshire. The project comprises a three-year capital works programme which will enable IGMT to address the most urgent conservation needs which are currently beyond their financial capability and put the Trust back on a stable financial footing to aid recovery post COVID-19. The subsidy also includes £4.5m of endowment funding which will be managed by a professional Investment Management firm to generate income to fund ongoing conservation maintenance.
Subsidy Control information in relation to grant to The Judge’s Lodging Trust
Date of grant: 10 May 2023
Reference: NM-22-01011
Grantee: The Judge’s Lodging Trust Limited
Category of beneficiary: Small and Medium Sized Enterprises
Subsidy amount: £164,952
Legal basis of subsidy: The Trustees of the National Heritage Memorial Fund (the body corporate which operates The National Lottery Heritage Fund) has statutory power to award grants under the National Heritage Act 1980 and National Lottery Etc Act 1993.
Policy objective: National Lottery Grants for Heritage is our open programme for all types of heritage projects in the UK. A funding programme for projects that connect people and communities to UK-wide, regional and local heritage. Made possible thanks to National Lottery players.
Purpose of the subsidy: To enable the Judge’s Lodging Trust to build organisational resilience by developing a secure source of revenue. This will support the Trust to maintain their accredited museum, which is an important tourist attraction in Presteigne, Powys.
Eligibility for the subsidy: The National Lottery Heritage Fund will inspire, lead and resource sustainable, thriving UK heritage. Applicants had to be charities, not-for-profit or public sector organisations.
Basis for subsidy calculation: The project costs as set out in the grantee’s application and assessed and verified by Heritage Fund staff and the specially convened delegated decision panels.
Project summary: The Judge’s Lodging Trust is looking to secure its long-term financial resilience by repurposing an unused room in the Judge’s Lodging Museum as a holiday let, providing a more secure income stream for the organisation after the loss of guaranteed council funding. The project will also improve access to the museum for disabled visitors by adding a disabled parking space and fitting a new platform lift in the museum.
Subsidy Control information in relation to grant to Paxton17 Ltd
Date of grant: 24 January 2023
Reference: NL-21-000140
Grantee: Paxton17 Ltd
Category of beneficiary: Small to Medium Enterprise
Subsidy amount: £2,677,310 (Grant awarded)
Legal basis of subsidy: The Trustees of the National Heritage Memorial Fund (the body corporate which operates the Heritage Fund) has statutory power to award grants under the National Heritage Act 1980 and National Lottery Etc Act 1993.
Policy objective: The Heritage Enterprise programme is designed to support developments that would not attract commercial interest and therefore are not commercially viable. The grant calculation is structured around the conservation deficit to ensure our contribution is targeted and appropriately proportionate to the redevelopment cost.
Purpose of the subsidy: Our grant is a contribution towards the conservation deficit plus activity costs. Proposals include a café and gallery. Our grant will support the redevelopment of the historic buildings into artist studios and through the activity programme will help deliver skills-development opportunities for local communities.
Eligibility for the subsidy: Applicants had to be charities, not-for-profit organisations, or public sector organisations, or for-profit organisation applicants could partner with a not-for-profit body. The heritage asset had to be of outstanding importance to the national heritage and at risk.
Basis for subsidy calculation: The project costs as set out in the grantee’s application and assessed and verified by Heritage Fund staff and the specially convened recommendation and decision panels.
Project summary: Paxton17 Ltd have received a grant under our Heritage Enterprise programme to restore and redevelop two derelict Grade II* Georgian townhouses and give them a sustainable new use as artist studios. Our grant will support the redevelopment of the historic buildings into artist studios and through the activity programme will help deliver skills-development opportunities for local communities.
Subsidy Control information in relation to grant to Royal Chelsea Hospital
Date of grant: 16 September 2022
Reference: NL-21-00018
Grantee: Royal Chelsea Hospital
Category of beneficiary: Small and Medium Sized Enterprises
Subsidy amount: £3,179,089
Legal basis of subsidy: The Trustees of the National Heritage Memorial Fund (the body corporate which operates The National Lottery Heritage Fund) has statutory power to award grants under the National Heritage Act 1980 and National Lottery Etc Act 1993.
Policy objective: National Lottery Grants for Heritage is our open programme for all types of heritage projects in the UK. A funding programme for projects that connect people and communities to UK-wide, regional and local heritage. Made possible thanks to National Lottery players.
Purpose of the subsidy: As part of a site-wide capital scheme outside the scope of this project, the Soane Stables – currently used for storage and unsuitable for public access – will be restored and fitted out as a visitor centre. New interpretation, public engagement opportunities and a programme of activities will promote public enjoyment and public knowledge of the heritage.
Eligibility for the subsidy: The National Lottery Heritage Fund will inspire, lead and resource sustainable, thriving UK heritage. Applicants had to be charities, not-for-profit or public sector organisations.
Basis for subsidy calculation: The project costs as set out in the grantee’s application and assessed and verified by Heritage Fund staff and the specially convened recommendation and decision panels.
Project summary: The Royal Hospital Chelsea will use the funding over three and a half years (from September 2022 to December 2025), to carry out capital works to refurbish and fit out the Soane Stables. Running alongside, there will be a detailed activity plan to deliver a step-change in the visitor offer. The visitor centre will be available to the public following the project for our remaining contract term.