Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, with reference to the rule under the new community amateur sports club scheme that requires a minimum of 50 per cent of club members to participate at least 12 times a year, how that threshold was decided and what evidence and consultation that decision was based on.

The new regulations for CASCs were introduced on 1 April 2015. All the changes made were necessary to reinforce the original spirit of the scheme requiring clubs to be open to the whole community, with the promotion of participation in sport as their main purpose.

The Government consulted widely with the sector on all the changes to the scheme. It was aware that there was confusion about the meaning of participation prior to the consultation period for the new regulations. Responses to the consultation were mostly supportive of the 12 times a year rule for participation.

The scheme does not permit clubs to impose fees which are a significant obstacle to membership. The vast majority of CASCs charge less than £520 for annual membership. To make membership more accessible, clubs with higher costs associated with membership are required to make provisions for those who can’t afford to pay more than £520 a year. If no suitable arrangements are made this club is not able to be a CASC because it is not considered to be open to the whole community.

During the development of the new CASC regulations the Government was aware of State aid complaint SA.38208 (2014/NN). At the time, the Government was only asked to provide a response to the complaint. The Government provided this response, explaining why the CASC scheme was not State aid. The Commission’s subsequent ruling confirmed this view.

Since the introduction of the new regulations all CASCs were given a 12-month period of grace to make any necessary changes to remain in the scheme. The Government wrote to all registered CASCs explaining the new regulations and asked clubs to complete a self-assessment checklist on income, membership and participation levels. They were also asked to contact HMRC if they did not meet the new requirements.

From 1 April 2016, 500 clubs have been deregistered as CASCs, affecting some 35 different types of sport.

Since 2010 there has been a steady increase in the numbers of CASCs registered in the scheme. Although the Government does not yet have figures for clubs registered as at 5 April 2016, the breakdown of figures since 2010 is:

5630 – 5 April 2010

5976 – 5 April 2011

6165 – 5 April 2012

6334 – 5 April 2013

6571 – 5 April 2014

6715 – 5 April 2015.