Funding Overhaul Threatens Essential Services
Charities across the United Kingdom are issuing urgent warnings that thousands of gambling addicts risk losing 'life-saving' support due to significant delays in a government funding overhaul. The new system, which transitions from voluntary contributions by gambling operators to a mandatory statutory levy, has left treatment providers facing a severe cash crunch and uncertainty over future operations.
The shift, implemented by the Labour government since April 2025, aims to raise approximately £100 million annually from the £12.5 billion-a-year gambling sector. Under the new regulations, gambling operators are required to pay a mandatory levy of up to 1.1% of their gross gambling yield, with rates varying by operator type.
Impact on Key Support Providers
Leading charities such as GamCare and Gordon Moody have voiced serious concerns. GamCare, which operates the National Gambling Helpline, has announced the closure of its Young People's provision by September 2025 due to a lack of sustainable funding. The charity previously engaged with over 55,000 people annually through its helpline and delivered over 9,000 treatment sessions.
Gordon Moody, a specialist in residential treatment for severe gambling addictions, helps around 2,000 individuals each year. The charity faces an uncertain future beyond March 2026 and has indicated it may be forced to turn away new patients from as early as November 2025, unable to guarantee funding for its 18-week treatment programs.
Meanwhile, GambleAware, which previously played a central role in commissioning services, is set to undergo a 'managed wind-down' and cease operations by March 2026 as its functions transition to government oversight.
Delays and Commissioning Confusion
The new levy system, overseen by the Department for Culture, Media and Sport (DCMS), has been 'beset by delays', according to charities. A primary concern is the lack of clarity regarding commissioning intentions from the government and NHS England, which is now designated as the main conduit for distributing funds for treatment. The funds are intended to be allocated with 50% for treatment, 30% for prevention, and 20% for research.
The first invoices for the statutory levy payments were issued on September 1, 2025, with payments due by October 1, 2025. However, the transition has created significant anxiety, with charities fearing potential insolvency, particularly for smaller organizations, if funding gaps persist.
Government Response and Interim Measures
In response to the growing concerns, a government spokesperson affirmed the importance of a 'smooth transition' and stated that they are working with GambleAware to ensure continued access to treatment. The Department of Health and Social Care (DHSC) has also opened expressions of interest for a new £30 million fund designed to support frontline organizations during this transitional period. This two-year program will assess applications in February-March 2026, with funding expected to commence in April 2026.
5 Comments
Michelangelo
Perhaps these charities relied too much on a broken system. Adapt or fail.
Leonardo
The £30M fund shows they're addressing it. Panic is premature.
Raphael
It's a transition, there will be bumps. The new system is better long-term.
Michelangelo
Securing £100 million annually from the industry is a laudable goal, yet the current funding gap is causing severe distress to frontline providers. The government must bridge this gap immediately.
Leonardo
Absolutely shameful. The government is letting vulnerable people down big time.