We are deep in that time of the parliamentary cycle where Fridays see a host of Private Member’s Bills being debated. Friday 24th January, whilst Storm Eowyn raged across Northern Ireland and Scotland was no exception, with my bill the Gambling Act 2005 (Monetary Limits for Lotteries) Bill second on the list.
I am delighted to be bringing this Bill to Parliament. It is a true example of how a tiny legislative change can have a massive impact. For in all the regulations around gambling and lotteries, there is one really strange anomaly: there are monetary limits on sales for charity lotteries, but only for charity lotteries. It is this anomaly which my Bill seeks to address, by removing the cap entirely.
Charity, or society, lotteries raise funds for community causes and charities up and down the country. But under the current law, lotteries can’t sell more than £5 million worth of tickets per draw or £50 million each year. Many lotteries near or hit this barrier each year, as their popularity continues to grow. Indeed, it is estimated that without lifting the cap, charities will lose out on £175 million over the next five years.
The largest and most well-known society lottery is the People’s Postcode Lottery, who I have worked with closely in recent months. I know well the impact that their funding, having seen it myself in my constituency of North East Fife, can have. Taking just a few examples from recent years, the Newburgh Wellbeing Choir hired professionals for their singing for dementia sessions, there has been funding for outdoor education equipment for St Agatha’s and St Andrew’s nurseries, and funding a project by Nurture Steps to run support sessions for parents of young children with disabilities. There are also countless projects – from Cupar Foodbank to the local Brownie units – who receive funding from lotteries via their central bodies.
Removing the cap and promoting additional charity fundraising is vital, not only to support the incredible projects in every constituency, but to help charities still struggling from the cost of living crisis and who are now faced with the National Insurance Contribution increases. Indeed, regular funding from these lotteries has a significantly greater impact than other means of fundraising as it is unrestricted, allowing charities to focus on their core goals.
In the run up to the debate, I had several conversations with the Government about whether they would support the Bill. The PMB process works best with reforms like this: small, non-partisan, and certainly non-controversial. I understand the principal concern is over the possible impact on the National Lottery, which the Secretary of State is required to protect by statute.
I, and indeed the hundred-plus charity leaders supporting the Bill, had hoped the Government would be satisfied on this point. Afterall, the Gambling Commission has investigated this three times in the last 15 years, most recently in October 2017 finding that there is “no statistically significant effect of charity lotteries affecting National Lottery sales”. This has been confirmed again in 2022 in an impact assessment by Regulus Partners looking at state lotteries across Europe, and by the DCMS select committee in their report on the National Lottery the same year. Indeed, the distinct multi-million pound prizes of the National Lottery would be maintained under my Bill, which intends for society lottery prizes to be capped at £500,000.
Nonetheless, we were told in the debate that the Government is waiting for further independent research to be published before taking action. Despite this, I was pleased to secure commitments to update the House and publish the research before the summer recess. The Bill may have been adjourned until July, but progress is being made.
I’m very grateful to the People’s Postcode Lottery and the hundred plus charities supporting the Bill, for taking the time to meet with me and share what the reforms would mean to them.
Passing this Bill, whether now or once the Government has seen its evidence, will be a win-win. It makes society lotteries more sustainable, it puts long term funding into the pockets of the biggest and smallest charities, and ultimately improves the lives of our constituents.
Charity and society lotteries raise vital funds for communities, it’s time we scrap the outdated restrictions that are holding them back
