Culture Inquiry - final progress update from our Chief Executive

Following the 2021 Independent Culture Inquiry we gave two clear commitments. Firstly, we would act upon all the report’s recommendations, while building upon the strengths also identified, including our passion, our purpose and our people. Secondly, we would do so transparently and provide regular progress updates, of which this is now the third and final one.

All improvement actions and recommendations have been acquitted. These have been independently audited. Where relevant, ongoing work and specific follow up or recurring actions are now mainstreamed into our governance and ways of working.

Key updates since our last report:

We have launched a new strategy ‘It starts with community’, which will underpin our efforts to distribute at least £4 billion of National Lottery funding by 2030.

As well as our customers and stakeholders, the strategy includes and reflects values based on deep listening and engagement with colleagues across the Fund. It articulates how we’ll work as ‘One Fund’ to collectively deliver against our purpose, which is to use our funding to strengthen society and improve lives across the UK.

We have completed a governance review and have acted on recommendations including forming a Board sub-committee on people matters.

We have continued deep colleague engagement through multiple channels. This includes the establishment of a Colleague Council, with members attending Senior Management Team (SMT) meetings. Our latest internal colleague engagement surveys reflect progress made.

We have strengthened our work on equity, diversity and inclusion (as Chief Executive I lead and sponsor this), with appointed leads on funding- and people-related matters respectively. We have ensured each staff network is sponsored and championed by a member of our SMT.

We will have seen significant improvement in our engagement survey, which we report on each year in our Annual Report and Accounts. In 2023/2024 this has jumped to 73%, up from 61% in the previous two years.

Next steps:

People and culture will remain our highest priority. As One Fund we are committed to invest in, and nurture, our people and culture to ensure these reflect our values and the communities we serve. This priority will be reflected in all our future work, including our next Corporate Plan (2024-2027). We will report on our people and culture progress in our Annual Report and Accounts.

The Culture Inquiry Report clearly laid out the strengths we needed to harness and the challenges we needed to overcome. As the then new Chief Executive I gave my commitment that as an organisation we would act upon the recommendations and move forward on a more positive path.

It’s been a journey, and I want to thank colleagues who have demonstrated patience, support and passion for our organisation and work along the way. We could not have done this without you and, as we enter this next phase with a new strategy and clearly defined purpose and missions, I want to be clear that we will continue to build upon the many positives that have come out of this exercise.

Previous updates

12 month progress update from our Chief Executive

A year ago, I set out the actions The National Lottery Community Fund would take in response to the findings of the independent culture inquiry.

I gave two clear commitments. First, we would act upon all the report’s recommendations; and second, we would do so transparently and provide progress updates at 6, 12 and 18 months.

You can see our previously published six-month update below. Since the last update, new Senior Management Team and Board members have been appointed and joined.

We have successfully delivered the initial phase of our Strategy Renewal programme (see What Have We Heard To Date) and are now progressing through the second phase (see What Comes Next). If you haven’t already done so, please contribute to this important discussion by visiting our online forum. The Strategy Renewal process is expected to conclude in mid-2023 consistent with the 18-month timeline we set out. We will provide a further update at that point.

This listening, consulting and challenging (and being challenged) will lead to a step change for us here at the Fund, ensuring we are fit for purpose, aligned with the challenges communities face and well-placed to deliver on our purpose of supporting people and communities to prosper and thrive.

We also know that the cost of living context has become exceptionally challenging since last year, and have set out the support we will offer as a flexible and responsive grant maker here (see We Are Here for You).

We continue on a journey of improvement and change that will take us through 2023 and beyond – I and my team are committed to this and I will provide a final progress report next year.

Six month update

In November last year we set out the steps we would be undertaking in response to the findings of the independent Culture inquiry.

We committed to act upon all of the recommendations within the report, while building upon the strengths also identified, including our passion, our purpose and our people. As part of our commitment to transparency and to change here at the Fund, we promised to provide regular updates on our progress at 6, 12 and 18 month milestones.

Six months on, we have completed the majority of improvement actions and recommendations. Our programme of organisational transformation will further sustain and embed a positive culture, one that is well placed to be even more effective in supporting the communities of the UK.

Here is a summary of progress:

We are on track with much progress to report. We have acquitted many immediate actions focussed especially on our people, policies and practice to better support our staff and our aspirations to be an inclusive and great place to work. Actions include launching a new Employee Assistance Programme, giving everyone access to personal, confidential 24/7 support services, as well as an independently administered helpline where staff can confidentially raise any concerns.

We have recently announced new appointments to our Senior Management Team (SMT) and we continue to consolidate and rebalance responsibilities as we move forward.

In parallel, we are investing in our leadership. We are establishing a new leadership competency framework, which will be supported by a new performance and feedback system for our SMT.

We have doubled down on our equity, diversity and inclusion (EDI) ambitions. We have strengthened EDI as a strategic focus area in our 2022-24 Corporate Plan – and we are actively embedding equity, diversity and inclusion within our culture and across our grant making processes, ensuring our funding reaches all communities with demonstrable impact, reflecting the diversity of the UK.

We have appointed a senior designated and accountable owner of the EDI agenda and we have also strengthened the capability within our People (HR) function, including recruiting additional expertise and launching new training and revised recruitment practices and processes.

We are in the act of commissioning an independent governance review that will strengthen non-executive governance. A public appointments process will refresh the composition and widen the skills base of the Board - details will be available on our website.

In April we launched a comprehensive Strategy Renewal programme, a deep consultative exercise that will run for around 18 months, giving us opportunity to engage with an even broader spectrum of stakeholders.

The renewal will result in a step change for the Fund that will ensure that it is fit for purpose, aligning with the challenges communities now face thereby enabling us to support them to prosper and thrive.

We invite contributions to the consultation from both within the Fund and amongst our stakeholders. To participate in the Strategy Renewal please go to our dedicated microsite

We look forward to updating on further progress over the months ahead.

Initial update

This statement is in response to the findings of the Independent Culture Inquiry on the Fund and is fully endorsed by the Board of The National Lottery Community Fund:

The National Lottery Community Fund aims to have a culture that is fair, inclusive and consistent for all. It was disappointing to learn that this has not been the experience.

I welcome this report providing us with a series of poignant insights provided in June and July 2021. While the origins of the report related to historical allegations, the Terms of Reference for the Inquiry were commissioned to be forward looking. In all, 41% of our staff have contributed to the report and I would like to thank all those who have done so. It has not been easy hearing this feedback, but without it we cannot move forward and progress.

Bullying, harassment and discrimination is unacceptable, and will not be tolerated. Where it exists, it will be addressed with urgent action.

As the new Chief Executive of The National Lottery Community Fund, serving all four nations of the UK, I am determined to act upon all of the recommendations within the report. I would also like to build upon the strengths staff outlined in the report: our passion, our purpose and our people. These are all assets that will help us as we enter into a new phase for our organisation:

1- Immediate action on bullying, harassment and discrimination

Everyone across our organisation deserves and expects a workplace where we treat each other fairly, with respect, openness and inclusion for our differences – as Chief Executive this will be my immediate priority.

I will take immediate action so that colleagues know and can be confident in raising – independently and externally – any grievance they have. I will bring in an independent, expert organisation to improve culture and systems. I will ensure we train managers on how to handle and manage complaints and support everyone in how to raise a concern. I will deal with results without fear or favour.

We have recently put in place an Employee Assistance Programme to offer mental health wellbeing advice and support for all staff. We will be enhancing this offer with immediate effect for all staff to address any concerns raised following the findings of this report.

2 - Equity, Diversity and Inclusion (EDI)

As the new Chief Executive, I have established a new cross-Fund EDI steering committee that I chair. I will ensure that we publish a strategy that sets out the specific actions, timeline and metrics we will use as a grant-maker and organisation. All steps we take towards improvement will be consistent with our renewed commitment to EDI.

We are taking action to recruit EDI advisers in our People Team and will strengthen further where we need.

We have established staff networks, recruited dedicated staff to lead this important agenda and made a commitment towards fairness and inclusion for all.

3 - Clear Sense of Strategic Direction

We clearly need stronger shared and strategic direction with a unifying mission that brings us all together. In our recent publication Putting Communities First - Our Commitments to Communities we commit that “as we emerge from the pandemic, we’ll work to renew our strategy ensuring it reflects our commitments and is purposeful for the years ahead.”

We have set out a number of the principles already that will guide our future direction. Work on strategy development will begin in early 2022 and this report will help to inform our approach.

We have already started our journey towards data transformation. We are investing in new systems that help us to understand the difference we are making to all communities and where we could do better. We will share what we learn, in the spirit of transparency and will soon publish an Impact Report that explores what we know about the difference our funding makes.

4 - Strengthening our Governance

The report contains important recommendations relating to our Board and Executive. We will work closely with our supporting department, the DCMS, and our Chair to conduct a review of non-executive and executive governance respectively and to develop and implement any changes that are required.

The statutory and regulatory framework that governs our work as a corporate body - with operational independence for the distribution of good causes - is set in the National Lottery Act (2006). We reaffirm our commitment to ensuring that we remain clear and confident in how we discharge this duty.

We have recently revised guidance around our role as a Non-Departmental Public Body and developed training to ensure staff are aware of this, enabling them to execute their roles effectively.

It is the responsibility of the Executive - our Senior Management Team (SMT) - to provide visible and empowering leadership. I will take early action to prioritise a new leadership competency framework together with an enhanced performance management and performance review system.

As an SMT we will be taking immediate action to strengthen engagement and active listening as a result of this report.

We are taking an organisation-wide view on how we develop talent and ensure we have the people and skills that are best placed to serve communities. This includes recruitment to new and critical appointments within SMT that provides the organisation with an opportunity to bring in new thinking, skills and experience into important leadership roles.

5 - Transparent and Accountable Action

We will be transparent and accountable in responding to this report and its recommendations. Our people will be involved at each step - we will create immediate spaces to listen, engage and involve them and enhance our existing employee assistance support to address the issues raised.

We will report back regularly to staff on the improvements we are making and externally as appropriate. We will provide more comprehensive updates at 6, 12 and 18-month stages.

There is plenty of work to be done. It is important to say that the report notes many positives to build on. Our people should be proud of what they do, day in and day out. This has never been more clear than in our response to the COVID-19 pandemic. I look forward to soon publishing a new Impact Report, clearly setting out the important work happening in every corner of the UK.

As the new Chief Executive, I will be working in partnership with staff, Chair and our Board, to make The National Lottery Community Fund a great place to work. This will be in service of stronger outcomes and principles we expect – putting communities first.

My pledge to colleagues is this: wherever you are based, whatever your role and whoever you are, you can and should expect to be treated with the respect that we all deserve.

Statement from Blondel Cluff CBE, Chair of The National Lottery Community Fund:

As Chair of The National Lottery Community Fund, I am committed to a fair and inclusive organisation in every respect. I was appointed in February of this year and have since appointed a new Chief Executive and fully endorse his statement that bullying, harassment and discrimination is unacceptable, and will not be tolerated in our organisation.

I shall use both my personal experience of the Fund, together with my extensive experience of public life to inspire and facilitate all that can now be done to put things right. I have and continue to be grateful for the efforts made by DCMS to support me in this endeavour, and as such welcome the recommendations of their inquiry, all of which we intend to implement.

As Chair, I will be working closely with DCMS to ensure that the report’s recommendations are implemented swiftly and effectively, to build a more inclusive culture at The National Lottery Community Fund at every level and ensure that any bullying, harassment and discrimination is quickly identified and tackled.

I am grateful for the commitment and work of the new Chief Executive in preparing the Fund for the step change it must now undertake in order to resolve the challenges that it faces. Having now received the recommendations, this places us in a position to make steady, sustainable progress without undue delay. To that avail, we have today set out a clear action plan.

Our focus for the Fund is on putting the communities of the UK first. As such, we must ensure our staff and leadership work collegiately to better serve the public at large. The Fund will therefore now embark, in earnest, on a shared mission to build trust, professionalism and effectiveness across the organisation.

I am pleased to note that The National Lottery Community Fund has delivered £1 billion to communities across the UK during the COVID-19 pandemic in support of over 11 million people. Staff can be rightly proud of their work, and I commend them all for it. In going forward, I seek to raise the Fund up to become a globally recognised centre of excellence in our mission to support the diverse peoples and communities of the UK to thrive and prosper, delivering that mission in a professional, respectful and enabling environment in the best interest of all concerned.