The government is to update MPs by the summer on its policy regarding axing the cap on sales limits on charity lotteries.

During a debate on a private members bill to remove the cap in the House of Commons, charities minister Stephanie Peacock told MPs that a government decision will be made before the summer recess.

The decision will also follow the results from independent research the government has commissioned into the lotteries market. This is expected to be delivered to ministers by the end of this month.

“The Government have a clear commitment to update the House on our position with regard to society lotteries by the summer recess, once we are in receipt of the independent research,” confirmed Peacock.

She also acknowledged that lotteries for good causes “provide vital funding for hundreds of charities, community groups and sports clubs”, including in her own Barnsley South constituency. This includes support for disability charity DIAL and food poverty organisation Magic Breakfast.

She added: “Our support for lotteries raising as much money as possible is unwavering. We are also keen to better understand how the growth in sales is translating into the investment in good causes.

“The current picture suggests that higher sales have not led to an equivalent increase in funding for good causes, and there may be room to improve that.”

Peacock says that the “vast majority of society lotteries are also currently operating well within existing limits”.

The annual sales limits for charity lotteries increased under the previous Conservative government from £10m to £50m and umbrella lottery organisations can operate multiple licences, such as the People’s Postcode Lottery, which holds 20 licences and can sell £1bn worth of tickets a year.

Her comments came during a second reading debate on the private members bill, which has been introduced by Lib Dem MP for North East Fife Wendy Chamberlain.

She has been working with the People’s Postcode Lottery on the Bill, which is backed by more than 100 charities.

Chamberlain said she welcomes the government’s commitment to delivering its verdict on removing the cap by the summer.

“I would challenge anyone in this House to argue that the charities in their constituencies wouldn’t benefit from this funding,” she told MPs.

“I know we benefit already in North East Fife, and I’d love to see more support for our fantastic local initiatives.”

MPs debate for the second reading of Chamberlain’s bill was adjourned and is scheduled to continue at a later date.

People’s Postcode Lottery managing director Clara Govier also welcomed Peacock’s announcement.

“We urge them to give more urgency to this issue given the negative impact on many charities resulting from the existing sales limits on charity lotteries,” she said.

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