The government will make its stance on removing the caps on charity lotteries known “by summer recess”, the charities minister has pledged.

Speaking in the House of Commons on Friday, Stephanie Peacock said the government was committed to updating the house on its position on removing sales caps for society lotteries by the summer recess, once it had received final research on the topic.

The minister was speaking at the second reading of a private members’ bill put forward by Wendy Chamberlain, the Liberal Democrat MP for North East Fife.

Under current legislation, each charity lottery is capped at selling £50m-worth of tickets each year, but Chamberlain’s bill seeks to remove these limits.

The People’s Postcode Lottery has estimated that removing the annual cap could free up an additional £175m for charity over the next five years.

Chamberlain told MPs the bill would “allow unlimited charitable fundraising from licensed lottery sales”, adding: “I would challenge anyone in this house to argue that the charities in their constituencies wouldn’t benefit from this funding.”

Peacock told the chamber that the government wanted society lotteries to “thrive” but was yet to determine a position on the bill.

“There is a clear commitment from this government to update the house on our position with regards to society lotteries by the summer recess, once we are in receipt of independent research,” she said.

The independent research, which will examine the lottery market as a whole, was commissioned by the government to help “strengthen” the evidence base available ahead of any further review of lottery limits, Peacock said.

The government expects to have received this research by the end of next month, she said.

Peacock told MPs that when considering potential reform, the government would reflect on the current and future state of the sector.

She said: “The current picture is broadly positive, with the recent evidence showing that society lotteries continue to grow in popularity since the limits were changed in 2020.

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

But Peacock said the government recognises the challenge for large-scale umbrella lotteries, some of which have multiple licenses for multiple trusts.

“We know a small number of these may reach a limit within the following year, and that there are costs associated with operating this. 

“We don’t take this lightly, but it is worth noting that the current system does not limit overall sales of society lottery tickets for these organisations,” she said.

The government is keen to understand how the growth in sales translates into investment for good causes, Peacock said. 

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

Chamberlain said she welcomed the commitments made by the government and she looks forward to hearing the outcome of its review.

The debate is due to be resumed on 11 July.