A joint report from the Government and the Mayor of London released today presents the Spirit of 2012 Trust, an initiative of the Big Lottery Fund set up to receive some proceeds from the Athlete’s Village sale, as one of their ‘headline achievements’ on Olympic legacy.

The trust, due to start funding projects in September with an allocation of existing Big Lottery Fund money, will support a range of causes including ‘maintaining the commitment and energy of London 2012 volunteers’ and ‘promoting greater understanding of the issues facing disabled people’.

The trust’s estimated £30-40 million endowment fund originates from the complicated deal to fund the multi-billion cost of the Athlete’s Village.

Original plans to finance it with private investment collapsed during the economic crisis of 2008 and the Treasury had to step in to cover much of the cost.

What is less well known is that the last Government also made an additional and largely unpublicised raid on the Lottery to fund the Village rescue package, understood to be around £70 million.

Following a national campaign from thousands of charities, the politicians have agreed to pay back this money after the Village sale, and Big has chosen to set up the Spirit of 2012 Trust with its share.

The latest information from Ministers indicates that the refund payment may come in July 2014, along with an amount of lottery funds which remain unspent, most recently estimated by Ministers to be between £30-50 million.

The Athlete’s Village raid was on top of the £675 million taken by the Government in 2007 from lottery good causes to support building the Olympics infrastructure.

£425 million of this money would otherwise have gone to the Big Lottery Fund to distribute to charitable causes.

Nearly 3500 charities have now joined the Big Lottery Refund campaign, which aims to get this money paid back in full immediately.

The charity, Directory of Social Change (DSC) has been leading the Big Lottery Refund campaign.

Reacting to the report today, DSC’s director of policy and research Jay Kennedy, said: "The double-speak in the announcement today is almost too twisted to comprehend. Essentially Government is trying to take the credit for giving back some lottery money it never should have taken in the first place, and then presenting this as a victory for its delivery of the Olympic Legacy through an initiative it didn’t set up. It’s PR smoke and mirrors of the highest calibre.

"The Spirit of 2012 Trust may well contribute positively to the legacy, but it will be because thousands of charities have campaigned for the return of this cash in spite of repeated Government stonewalling."

He added: "Only days ago Ministers announced they have spent £528 million less on the Olympics than anticipated.

"They have no reason not to pay back every penny of lottery cash they raided from charities today.

"Vulnerable people across the UK urgently need the help this money could provide now."

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