Nandy urged to make ‘huge difference’ by lifting charity lottery cap

Lifting the cap on the amount of cash charities can raise using lotteries could make a “huge difference”, the UK Government has been told.

With the current limit said to be “causing increasing difficulties for charity fundraising”, Scottish Social Justice Secretary Shirley-Anne Somerville has written to the Westminster Government urging a review.

In a letter to Culture, Media and Sport Secretary Lisa Nandy, Ms Somerville said it is “incumbent” on the Government to look again at the current limit – which means charities can raise a maximum of £50 million from lotteries.

Stressing charities are facing “a challenging fundraising environment” at the same time as they are responding to “increased needs from the communities they support”, Ms Somerville called for action to be taken to “revise these fundraising restrictions, allowing the sector to continue to flourish”.

She said: “As the difficult economic climate has made it harder for charities to raise funds, while also increasing the need of the communities they serve, the cap on charity lottery sales is only serving to restrict the positive impact they could have in raising money for good causes.

“The UK Government should undertake a review of the cap and consider the huge difference that lifting it could bring to lives and communities across the country.”

Clara Govier, managing director of the People’s Postcode Lottery, added that the current charity lottery sales limits are “causing increasing difficulties for charity fundraising at a time when charities need these vital funds to respond to the impact of the cost-of-living crisis”.

Ms Govier said: “Charity lotteries exist to benefit society, yet have sales limits in place which do not apply to any other type of gambling product, and ultimately make raising funds for charity more difficult.

“Removing them would cost the Treasury nothing but benefit many charities.”

She said the People’s Postcode Lottery welcomes the Scottish Government’s call “for these outdated sales limits to be removed, and urge the UK Government to take action”.

Ms Somerville’s plea comes after Liberal Democrat MP Wendy Chamberlain lodged a Private Member’s Bill in the House of Commons seeking to remove the “outdated” caps on charity lottery fundraising.

While lotteries currently generate more than £420 million a year for charities, they are the only form of gambling or fundraising projects which are limited by an annual cap – with the People’s Postcode Lottery having estimated that removing this could mean an extra £175 million for good causes over the next five years, at no cost to the public purse.

Ms Chamberlan, the MP for North East Fife, said she is “delighted” to have introduced the Bill “to remove the sales limits on charity lotteries and allow them to maximise their charity fundraising”.

She said: “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 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 does so much good for society through supporting our charities is capped.

“That is why I am delighted to be taking action to remove this needless red tape and help boost charity lottery fundraising.”

The UK Government said ministers were aware of calls for further changes to be made to the sales limits for charity lotteries, which were last amended in 2020.

The Government commissioned independent research into the sector to consider the evidence base for any further review of the limits.