Lotteries: Limits on Prize Values

Gavin Robinson Excerpts

Tuesday 12th December 2017 Westminster Hall

[Jim Shannon]

There is certainly an argument for that, and I think we are all committed to ensuring that the vast majority of the money that people give goes to the good causes that we wish to see receiving the money. If we can achieve that, I believe we will be on our way.

[Gavin Robinson (Belfast East) (DUP)]

My hon. Friend knows that the legislative framework in Northern Ireland for societal lotteries is different to that for the rest of Great Britain. We have prescribed limits to expenses: 20% where the revenue is over £10,000; and 15% where the revenue is lower than £10,000. Perhaps those prescriptive percentages of 20% and 15% respectively should be considered for the rest of the United Kingdom.

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[Jim Shannon]

So we look to the Minister, as we always do, for a comprehensive response to the debate. It is always good to see her in her place and we deeply appreciate her interest in this matter.

Businesses should not reap the benefit of charitable rates and tax exemptions if the charitable project itself is not reaping the benefit of people’s charitable endeavours. For that reason, I am supportive of greater regulation to ensure that the most money possible goes to the charity. For example, when people make the decision to buy a Health lottery ticket over a national lottery ticket, it suggests that they want to help the health service, as the hon. Member for Eastbourne suggested in his intervention, and people who are ill. As much money as possible should go to health provision, as that is what people are trying to achieve.

I am not sure whether this issue is really within the remit of the Minister, but I must put something on the record. Whenever we watch TV—I only watch on very rare occasions—the Health lottery comes up. In the small print at the bottom of the screen, it says that the Health lottery is available in England, Wales and Scotland, but not in Northern Ireland. That might be because of our legislation, but I will put it on the record that many of my constituents wish to contribute to the Health lottery but cannot do so for whatever the reasons may be. So, I again look to the Minister, to give us some thoughts on how we can perhaps ensure that the good charitable giving of people in Northern Ireland can benefit the Health lottery, so that we can also contribute to good causes through that route.

[Gavin Robinson]

Perhaps this will be helpful for the Minister as well. Legislation prescribes that somebody from Northern Ireland cannot purchase in person a ticket in the society lotteries in GB, and similarly somebody in GB cannot purchase in person. There is no prescription in law that stops somebody from Northern Ireland participating by post, by telephone or online.

[Jim Shannon]

There we are. We just have to spend extra money. I thank my hon. Friend for his helpful comment. Many would wish to contribute to the Health lottery and similar charitable causes through the lottery societies if they were given the opportunity. I put on the record that we are keen to be a part of that process. Perhaps we could do it in the same way as everybody else, using the methods that they use across the whole of the United Kingdom of Great Britain and Northern Ireland.

I read an article recently that thankfully said that society lotteries generated more money for good causes in the year to March 2017 than ever before. That is good news, and if possible we would like to see that figure increase again as the process becomes more streamlined and more can go to the cause itself, as the hon. Member for North West Norfolk said in his introduction. Figures published by the Gambling Commission revealed that Britain’s 491 society lotteries raised £255 million, up from £212 million in 2016 and £190.6 million in 2015. It has been said that one of the reasons for the increase was that the percentage of sales income going to good causes had risen from 43% to 43.6%. The increase is exactly what the committee was looking for, and even more if possible.

The article went on to say that the funds generated by the Health lottery—again, we come back to that one—which consists of 51 local lotteries across Britain operating under one brand, have significantly increased the amounts raised by society lotteries since it was launched in September 2011. That is a supreme example of those who want to give charitably through a lottery and who do so for the benefit of all of the people—all bar one region—of the United Kingdom of Great Britain and Northern Ireland. We look to the Minister to give us some idea of how we can be a part of that process.

There is an argument that says the limits are increasingly out of date and should be raised to allow more money to be raised. The argument must be carefully considered, and I am sure the Government are doing so. That was the thrust of the contribution from the hon. Member for North West Norfolk, and I think it is the wish of the rest of us to see how we can do better. I urge the Minister to ensure that enough time is taken to safeguard individuals and families when considering any alteration of regulations with regard to any type of gambling, no matter how good the cause is.

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[Tracey Crouch]

We are constantly reviewing matters. The Gambling Commission constantly keeps the national lottery under review, and I am sure that colleagues are aware that discussions are already beginning about the next licence procedure. We have to have a healthy mix of lotteries. I recognise, as my right hon. Friend the Member for Witham pointed out, that not everyone is aware of the local good causes. There has been an issue that the national lottery money that goes to those good causes has not necessarily been promoted as well as it could be. Society lotteries have done that much better, and we want to ensure that we have a vibrant mix of national and society lotteries.

I am the Minister with responsibility for charities, so I have heard from many charities that benefit from society lottery funding, whether that is their own or a grant from such lotteries as the People’s Postcode lottery or the Health lottery, both of which support a multitude of good causes throughout the country. We have heard about some of those good causes today.

I have spent a long time looking at the evidence on the relationship between the national lottery and society lotteries. We know that the two sectors offer different and distinct propositions to players. The national lottery enables players to support a wealth of good causes in the hope of winning a life-changing prize, while society lotteries focus for the most part on affinity with a specific cause and are subject to limits on their annual and per draw sales and their maximum prize. For that reason, I do not believe there has been significant competition between the two sectors up to now, but reforms must be considered through that lens.

It has been interesting to hear the arguments regarding the prize limits on offer through various lotteries. It is no coincidence that when the national lottery draws have big rollovers, there is an increase in ticket sales—bigger prizes attract more players—but I do not think people are attracted to society lotteries in the same way. Many large society lotteries offer relatively low prizes but are still thriving, which speaks to the point that my hon. Friend the Member for North West Norfolk made. It is not always about the size of the prize; what is important is maintaining the balance and variety currently on offer.

I will briefly respond to the points made by our Northern Ireland colleagues. Although lotteries carry a lower risk of harm than commercial gambling, they are still a form of gambling, and tickets can be bought at 16. That is one reason why we are considering the evidence carefully before making a decision. Gambling policy in Northern Ireland is devolved, as was pointed out. I have listened with interest to the points that the hon. Member for Strangford and others have raised, and I encourage them to raise them with the Northern Ireland authorities. In addition, colleagues will know that I announced a consultation on social responsibility on 31 October. It will look at advertising, which was a point that the hon. Gentleman raised, and I encourage him to feed into the consultation. I continue to keep the devolved Administrations up to date on our work on this issue.

[Gavin Robinson]

The Minister will be aware that the Northern Ireland legislation on gambling and social charities has not been revised since 1994. The Department for Communities started a consultation in 2011, and we still have not got the outcome of that process. It is no surprise that there is huge divergence between the legislative framework in Northern Ireland and that in the rest of the United Kingdom. Given that we do not have devolved institutions at the moment, and regrettably might not for some time, it might be worth the Minister engaging with the Department for Communities to get an update on where that consultation is.

[Tracey Crouch]

I would be very happy to do that. The hon. Gentleman makes a good point.

The other comment I wanted to make was on the call for evidence. Responses to the call for evidence have been considered alongside the Gambling Commission advice. The process has taken time. There have been two general elections since it started, but I assure colleagues that it is very much at the forefront of my current work. We are carefully considering the evidence. While colleagues may say that there is consensus for change, which is true, I respectfully point out that there is not necessarily consensus within the sector on what the changes should be, and we are looking at that area as part of our consideration. As my hon. Friend the Member for North West Norfolk and others have pointed out, changes to the limits for sales and prizes can be made by statutory instrument, but the parliamentary process, as many know—there are some very experienced colleagues in this room—can take around nine months to conclude from when an announcement is made. We are trying to work the issues through. I hope to be able to update colleagues in more detail in the new year.

To conclude, society lotteries, both large and small, play a rich, varied and important role in supporting and championing good causes. For some, they may well be the mechanism for providing their main sources of income, and it is my intention to ensure that the sector has every opportunity to grow and thrive. I thank my hon. Friend for giving us the opportunity to set that on the record.