The news was welcomed by the Social Enterprise Coalition, as the new act ensures that all social enterprises are able to access the full range of lottery funding. Previously, organisations such as cooperatives were unable to access grants from the National Lottery Community Fund because their organisational structure did not fit the required legal definition.

Minister for sport Richard Caborn said: “This act takes the lottery into the next generation helping it become even bigger and better than before. We want people to keep on playing the lottery and continue the revolution of people and places that we have already seen across the country through the massive investment it has brought.”

Meanwhile, the Monday charities lottery has announced higher charges for the charities benefiting from its donations. Following disappointing ticket sales and the departure of four of its senior executives, Monday operator Chariot has said charities will have to pay a 6p-in-the-pound charge to take part, on top of the 1.8p fee they already pay for administration and marketing costs.

Chariot has insisted the move is a temporary one, to be reviewed after six months. It said extra fees would be given back to the charities once financial targets had been met, and the total cost to charities would fall after the first year.

Chair Peter Jones said: “We have worked in partnership with the charities to reach a deal that works for both of us. We can now continue to implement our new business plan and look forward to the future of the game in return for a modest and ultimately rebated sacrifice by the charities.”

The announcement came less than a week before the lottery, launched in May, raised its first million for charity.