Government Decision on Removal of Charity Lottery Caps Expected by Summer

The government is planning to make a decision regarding the removal of caps on charity lotteries by the summer recess, according to charities minister Stephanie Peacock. Peacock mentioned in the House of Commons that the government is committed to updating the house on its stance once they have received final research on the topic. This comes after Wendy Chamberlain, the Liberal Democrat MP for North East Fife, proposed a private members’ bill to eliminate the current limit of £50m in lottery ticket sales for charities.

The bill aims to allow charity lotteries to fundraise without any restrictions, potentially unlocking an additional £175m for charitable causes over the next five years, as estimated by the People’s Postcode Lottery. Chamberlain emphasized that this change would greatly benefit charities across different constituencies.

Peacock highlighted the government’s desire to see society lotteries flourish but mentioned that a firm position on the bill is yet to be determined. The government has commissioned independent research to assess the lottery market comprehensively, with results expected by the end of the upcoming month. This research will help in building a solid evidence base for any potential changes in lottery regulations.

While acknowledging the positive growth of society lotteries since the 2020 regulatory changes, Peacock also recognized the challenges faced by larger umbrella lotteries with multiple licenses. Although most society lotteries are operating comfortably within the existing limits, the government is aware of associated costs for umbrella lotteries that may be reaching their maximum sales threshold in the near future.

The decision will be made once the government has assessed the current and future state of the sector, weighing the benefits of removing sales caps against potential challenges faced by larger lotteries. Peacock assured MPs that the government would provide an update on their position by the summer recess, showcasing their commitment to ensuring a fair and thriving environment for society lotteries in the UK.