We’re capping the wrong thing, and it’s costing charities millions.
This week, I attended a People’s Postcode Lottery dinner in the House of Commons hosted. Sponsored by Tonia Antoniazzi MP, we were joined by the likes of Ruth Jones MP, Lord Boateng and Civil Society Minister, Stephanie Peacock MP. It was an important moment – not just for the cause at hand, but for what it represents: a smarter, fairer way to support charities at a time when need is rising and funding is shrinking.
The issue? Charity lotteries like People’s Postcode Lottery are subject to outdated limits on how much they can raise and distribute to good causes. These are caps that simply don’t make sense anymore, if they ever did.
Charity lotteries are the only fundraising model legally capped in the UK – currently limited to £50 million in annual sales per lottery licence, with per-draw and prize limits as well. No other regulated gambling product has these restrictions. They aren’t about public protection – even the Gambling Commission has said it can’t find a clear rationale for them.
These caps are costing the charity sector dearly. By one estimate, they’ll deprive UK charities of £175 million over the next five years, money that could be going directly into services, programmes, and people’s lives.
At Greenhouse Sports, where I serve as CEO, we’re proud to be funded by both the National Lottery and players of People’s Postcode Lottery. We know firsthand the difference this kind of sustained, flexible support can make, especially for young people growing up in poverty, who are often shut out of opportunity.
At a time when youth services have been cut by over 70%, and 4.3 million children are growing up in poverty, we should be removing barriers to giving – not reinforcing them.
What makes this especially frustrating is that this money doesn’t cost the Treasury a penny. It’s voluntary. It’s regulated. And it works. Last year alone, People’s Postcode Lottery players raised £228 million for UK charities. That’s £19 million a month – and over £1.5 billion since 2005. These are big numbers, with big human consequences.
It’s also a model the public is behind. According to polling by More in Common, 56% of the British public oppose laws that restrict charity lotteries from raising as much as the National Lottery, and just 17% support the status quo. This isn’t just a sectoral ask. It’s a common sense one.
Critically, this isn’t about putting one funding source over another. The National Lottery and charity lotteries can, and do, coexist. In fact, 70% of people who buy charity lottery tickets also buy National Lottery tickets. They’re not in competition. They’re complementary.
So this is a call not for special treatment, but for fair treatment. Let’s stop forcing operators like People’s Postcode Lottery to jump through unnecessary hoops – 20 separate trusts, 20 separate boards, 20 sets of governance – just to distribute funds that the public is happy to give and charities urgently need.
DCMS and Parliament have reviewed this issue. There is no regulatory reason to keep the cap in place. If we believe in the power of community, if we believe in the role of charities in delivering vital public good – particularly at a time when state capacity is stretched – then we should get behind this change. It’s pragmatic, popular, and powerful.
Let’s cut the red tape. Let’s let generosity flow. And let’s give the third sector the freedom – and fuel – to do what it does best.
Proud to work alongside funders like People’s Postcode Lottery and to be part of a sector that continues to innovate in the face of constraint. If you agree it’s time to remove outdated restrictions on charitable lotteries, let your MP know.
Let’s lift the limits – and lift the impact.