Wendy Chamberlain MP’s Bill bids to remove charity lottery fundraising cap

Wendy Chamberlain, MP for North East Fife, will have the second reading of her Bill to remove the outdated caps on charity lottery fundraising on Friday [24th January 2025].

At present, each charity lottery is capped at selling £50 million worth of tickets each year, which restricts the amount charitable funds, such as lotteries, can generate for good causes across the country. Chamberlain’s Bill would remove these limits.

Regulated by the 2005 Gambling Act, charity lotteries have existed since the 1960s and are unique in that they specialise in long-term, unrestricted funding for good causes on a not-for-profit basis. Despite this, and the over £420 million a year for third sector organisations that these lotteries bring in, charity lotteries are the only type of gambling or fundraising product subject to annual caps on sales, which serve no obvious purpose.

While Parliament partially reformed charity lottery limits in 2020, the country’s best-known charity lottery fundraiser, People’s Postcode Lottery, has led sector calls for continued reform – something that was promised, but never delivered by the former Conservative Government despite strong backbench support from the party’s MPs. People’s Postcode Lottery estimates that removing the annual cap on sales could free up an additional £175 million for good causes across the next five years for the charities it supports, which would continue to come at no cost to the public purse.

Speaking before the Second Reading, Wendy Chamberlain MP, said:

“I am delighted to introduce my second Private Members Bill to Parliament, which aims to remove the sales limits on charity lotteries and allow them to maximise their charity fundraising; and therefore, the amount available to charities themselves.

“Charity lotteries play a vital role in supporting charities large and small across Britain, yet they are subject to limits on their sales, which ties them up in red tape, and restricts their effectiveness.

“I have seen for myself the benefit to local charities from lottery funding. Good causes ranging from farming experiences and skill building for people with additional support needs, to walking groups and local community projects that have received funding within the last year in North East Fife alone.

“These limits have no obvious purpose and removing them would cost the Treasury nothing, yet it will help boost charities at a time when they face a difficult fundraising environment.

“It is bizarre that every other type of gambling product has no limit on sales, yet the product that does so much good for society through supporting our charities is capped.

“That is why I am hopeful to have Government support this Friday and help boost charity lottery fundraising”.

Clara Govier, Managing Director of People’s Postcode Lottery said:

“The charity lottery sales limits are causing increasing difficulties for charity lottery fundraising at a time when charities need these vital funds to respond to the impact of the cost-of-living crisis.

“We welcome Wendy Chamberlain bringing forward this Bill and urge MPs cross Parliament to support it.”

One of the other charities affected is Magic Breakfast, who are working to ensure no child is too hungry to learn.

Their Chief Executive, Lindsey MacDonald, commented:

“At Magic Breakfast we are responding to vastly increased need, yet because of the charity lottery sales limits our funding from charity lotteries cannot increase.

“We join leaders across the charity sector who are calling on Parliament to take action and resolve this issue as soon as possible. We therefore welcome this Bill from Wendy Chamberlain MP and urge the Government to back it.”

Laura Lee, Chief Executive of Maggie’s, who run cancer centres across Britain, added:  

“Charity lotteries have been transformational for so many charities and the important work they do.  That has certainly been the case for Maggie’s and it therefore makes no sense that charity lotteries are stymied by Government red tape.

“That is why we warmly welcome Wendy Chamberlain MP bringing forward this Private Members Bill to remove the charity lottery sales limits and help maximise funds for charities like Maggie’s, helping us to help cancer patients and their families across Britain.”

Another charity supporting the Bill is the Royal Voluntary Service, who support and organise volunteers across the country to support communities and the NHS.

Their Chief Executive, Catherine Johnstone CBE, commented:

“The public will no doubt be surprised and disappointed that there is any sort of limit on charity fundraising.  Because of the current charity lottery sales limits, the funding Royal Voluntary Service receives from charity lotteries cannot increase – which is an absurd situation.

“Increased funding from charity lotteries would mean we could provide more support to those who need it most. I urge all MPs to back this important Private Members Bill to remove these limits on doing good!”.