The residue in a spent case is minimal but it would be sensible to wash them out before using as a craft material, especially if they are going to be used by little ones.
The move in the US to ban lead on public hunting grounds will never go through because the gun lobby is so strong but more to the point it is not really comparable to the UK and here is why:
The US has such a massive hunting / shooting culture that the public hunting grounds are grossly overshot. Millions of Americans descend on these grounds every year to shoot, the result is tonnes and tonnes of lead shot being left in water courses, areas of sensitive ecology etc.
The UK by contrast has no public hunting grounds at all. In order to shoot you must attend a club, find a friendly landowner who will let you shoot their land or be very lucky and own a significant amount of land yourself.
Either way, the numbers of people shooting a given piece of land are absolutely tiny compared compared to the US and on the whole shooters here in the UK are much more environmentally aware. I have land and allow a few friends to shoot it so long as they follow the rules. If I found one of them shooting lead shot over my fishing lakes for example, I'd go nuts and they'd loose the right to shoot there. If it were state land then the attitude of 'sod it I pay my taxes , I'll do whatever I like' often prevails.
The hunting culture in Norway for example, is much more similar to ours and they actually reversed a lead ban last year after proper studies were done and they realised that he legislation that was previously passed was more a result of hysterical anti-gun pressure groups than science.
If you go into your countryside nursery and start kicking off about a spent shell casing they're going to think you're nuts. before reading this it genuinely never occurred to me that an empty case could cause someone such bother... the rest of your life must be pretty bloody sweet if you can afford to give this headspace!