ACE ‘sorry for the worry’ as it pauses proposed funding changes 

Arts Council England (ACE) has apologised to artists, freelancers and cultural organisations after proposed changes to two of its funding programmes sparked concern and criticism in the sector, leading the funding body to pause its plans.

In a blog post, ACE confirmed it had been consulting with around 80 grant makers and applicants as it “explored” changing the eligibility criteria of its National Lottery Project Grants (NLPG) and Developing Your Creative Practice (DYCP) schemes to manage “unsustainable” demand.

The changes, which were due to be implemented in April but had not yet been made public, included any organisation that had an NLPG having to wait until that project was completed before re-applying, and limiting applications to two a year.

However, discussions with the sector had raised “a number of specific concerns”, particularly among touring organisations.

“In light of this feedback, we are going to consult with a broader group of colleagues in the sector,” said ACE, confirming it would not be making any changes before September 2025 at the earliest.

Managing demand

Explaining the reasoning behind the move, ACE said that while its income from the National Lottery has remained static since 2020, demand for NLPG and DYCP programmes is the highest it has ever been against an “extremely challenging” wider financial climate, with fewer sources of funding and increased costs.

ACE deputy chief executive Laura Dyer told The Stage that other drivers of demand for its funding included ACE’s own Let’s Create strategy and “people becoming more aware during the pandemic of the role ACE can play”.

The funder said its projections for the three years to March 2025, show NLPG applications will have increased by 16%, and DYCP applications will have risen by 11% in the same period. It estimates that demand across both programmes in 2024-2025 will be £355 million compared with £295 million in 2022-2023.

ACE said the proposed changes would “manage demand” while ensuring the chances of success for applicants are “fair and reasonable” while also noting that they were “similar to those used by other National Lottery funders”.

The worst idea in the world

Sector figures called the plans “the worst idea in the world” and told The Guardian the proposed start date in a few months’ time would have put many organisations in a “crisis”.

Dyer said ACE had taken note that the changes were “creating a degree of anxiety” and that the organisation would “pause” and undertake a “bigger consultation”.

“Some of the advantages [of the proposed system] were that it meant people had done an evaluation and concluded a grant and we didn’t have demand building. But we absolutely hear, particularly from the touring sector, that it causes problems. That was one of the areas that had the strongest response,” she said.

However, she was firm that changes would have to be made.

“We are going to have to do something, as we can’t see the pot massively increasing,” said Dyer.

“We need, with the sector, to [establish] where we can make some shifts, but in a way that still keeps it an open access application process. That is an important part of NLPG. It brings in new people as well as sustains existing organisations and activities.”