Homeless charity said it was given a gagging order by Big Lottery
Lottery bosses have said they are investigating claims one of its officials warned a charity to stop criticising universal credit or lose funding.
Ellie Waugh of the charity Humanity Torbay posted a video online saying a Big Lottery official told her to stop speaking out about contentious issues or risk losing out on a grant.
The organisation, which supports homeless people, had applied to the funder for a three-year £125,000 grant which would pay for rent, heating, a mental health councillor and two staff members.
Videos are regularly posted by Waugh and her organisation highlighting the effect of government policies on its clients, one of which is universal credit.
The Big Lottery Fund is officially an executive non-departmental public body, sponsored by the UK government’s Department for Digital, Culture, Media & Sport.
Waugh said the official made her cry after criticising her during the three-hour visit. The official also told her that she needed to “play the game.”
"She told me I needed to go on a media awareness course, to stop doing videos, to stop speaking out and that the National Lottery wouldn't put up with it,” said Waugh.
"She also said we shouldn't have a website or a social media presence - but that's how we get our donations."
Waugh said she made the decision to speak out because she wanted people to know how bad universal credit was affecting people as well as how the lottery was trying to buy silence.
“As the CEO of Humanity I have made the decision to speak out and say this is not right. At the end of the day people should know what’s going on.
“I don’t think people realise just how bad it is at the moment. More people are finding themselves homeless and on the street due to universal credit.”
In a statement, the Big Lottery Fund said: "We do not prevent any grant holder from voicing their views on an issue that is important to them, their organisation or community.
"We are looking into how this could have arisen as a matter of urgency."