People’s Postcode Lottery to discuss cap removal with charities minister

13 Jun 2023 News

The Rt Hon Stuart Andrew

UK Parliament

The People’s Postcode Lottery (PPL) is due to meet civil society minister Stuart Andrew next month to discuss its proposals for fundraising limits to be removed.

PPL estimates that the 20 charitable trusts for whom it manages lotteries could raise an additional £198m over the next five years if the government scrapped current limits imposed on society lotteries.

It will be the first time Andrew has met PPL, which has long campaigned for all limits to be removed, since he took over an additional responsibility for lotteries earlier this year.

Charities back campaign

Society lotteries are able to sell £50m-worth of tickets each year, with a limit of £5m per draw, each with a maximum prize of £500,000.

Therefore, PPL’s 20 trusts could raise a maximum of £1bn a year in theory. But in 2021, the total combined sales of PPL’s 20 trusts came to £534m.

However, PPL argues that the current rules are stopping its 20 trusts from raising an additional £198m for charities over the next five years.

It estimated that charities funded by the PPL – including the Royal Voluntary Service, Barnardo’s, Maggie’s, Young Lives Vs Cancer, Crisis and Depaul – could each raise an additional £4m during the period.

Clara Govier, managing director of PPL, said: “We want ministers to be fully aware of the negative impact their current policy is having on charities and the communities and causes they serve.

“They must realise the huge opportunity for them to make a massive difference to these charities and at no cost to public finances.

“It is not even clear what the current policy is meant to achieve, and indeed it seems to be pointless. What is clear however is that it is negatively impacting on the finances of many charities.”

DCMS: Limit not yet reached

A DCMS spokesperson confirmed the upcoming meeting but said the current limits to fundraising had not been reached.

They said: “Society lotteries – like the People’s Postcode Lottery – and the National Lottery play a vital role in assisting the most vulnerable in society by supporting charities and social initiatives and we want them to thrive. 

“That is why we increased the annual sales limit for society lotteries from £10m to £50m in 2020 and, while we have yet to see that sales limit reached, are pleased to see the total return of the People’s Postcode Lottery to good causes continue to increase year on year.”

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