Gambling Levy Transition Leaves Charities Vulnerable to Insolvency

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The transition to the new mandatory gambling levy has left charities vulnerable to insolvency, as delays in fund distribution create an unsustainable financial environment. Providers warn that without urgent government financial support, hundreds of recovering addicts will be cut off from essential care.
The policy was designed to secure a robust and stable financial future for addiction services by requiring mandatory contributions from gambling operators, replacing the older voluntary model. The administrative failure to channel these collected funds promptly has ironically destabilized the sector, creating a severe cash crisis.
The new commissioning role taken by the NHS is the main bottleneck. Key organizations report extreme difficulty navigating the vague requirements and slow processing times for contracts. This administrative paralysis is particularly lethal to smaller, specialized providers who rely heavily on continuous commissioned income.
The uncertainty is generating deep anxiety among service users, who fear the discontinuation of their specialized support. Former addicts emphasize that the consistency of care is crucial for maintaining recovery and warn that a break in service for high-risk individuals is a known precursor to severe mental health crises and suicide.
Charities are demanding the government approve immediate temporary funding to bridge the gap and keep services operational until the new commissioning system is fixed. They stress that patient safety cannot be sacrificed due to administrative shortcomings. The government has acknowledged the transition issues but has not confirmed the emergency financial intervention.

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