People’s Postcode Lottery’s Statement to Bulletin No 924

Malcolm Fleming
People’s Postcode Lottery

Further to the article in last week’s bulletin about People’s Postcode Lottery and the relationship between society lotteries and the National Lottery, we thought it would interest you to know that we were set up to sustainably raise funds for good causes, we are not for commercial gain, nor do we have private shareholders. Since our launch in 2005 our players have raised over £300 million for good causes.

We are supportive of the National Lottery, not least because it supports many of the charities we do.  The recent drops in National Lottery funding to good causes are not because of society lotteries – as economic modelling by the regulator, the Gambling Commission, has shown. They said “Society lottery sales were not determined to be a material driver of National Lottery sales.” The Department of Digital, Culture, Media and Sport, said that “in this model, competition from society lotteries does not come out as a significant variable.”

Last month the House of Commons Public Accounts Committee published its report ‘The Future of the National Lottery’. The report gives several reasons why National Lottery funds to good causes fell in 2016-17, none of which relate to society lotteries.  Instead it highlighted changes in the Lotto game, lower awareness of the link between good causes and playing the National Lottery, and more players playing scratch cards as opposed to draw based games, (National Lottery scratch cards having a lower return to good causes).

Launching the report Committee Chair, Meg Hillier MP, said: “the detrimental effects of tinkering with the format of the [National] Lottery, and a decline in public awareness of its support for good causes, are also clear.” Happily, according to the latest quarter of Gambling Commission statistics, National Lottery funding for good causes is increasing again.

32% of the People’s Postcode Lottery ticket income goes to charity (the remainder to prizes and running costs), compared to 21.5% from the National Lottery, according to the latest Gambling Commission annual statistics. We want to increase our percentage further which is why, along with over 70 major charities, The Institute of Fundraising, The Lotteries Council and The Hospice Lotteries Association, we are calling on the UK Government to update the 2005 law relating to society lotteries to help further increase the charitable contribution that society lotteries can make.