Third sector organisation will now be able to raise up to £50m a year through lotteries.
A decision to increase the amount which can be raised through charity lotteries has been welcomed by third sector organisations.
Under the new rules, lotteries will be able to raise a maximum of £50m a year, up from the current limit of £10m.
Dozens of major charities had campaigned for the move, which was announced this week by UK sport and civil society minister Mims Davies.
People’s Postcode Lottery managing director Clara Govier said the change was a “very significant” step towards a maximum limit of £100m.
She added: “The time for action is now and we’d like to see the £50m limit introduced as a priority. We know there is strong support for this change from charities.
“It is right that the government is highlighting the need for increased transparency and we will continue our work to ensure players are kept fully informed of the charities and good causes they support. They deserve nothing less.
“The minister’s statement was detailed and comprehensive. We will now take the time needed to consider the government’s position carefully and provide a detailed response in due course.”
People’s Postcode Lottery players have raised more than £450m for 6,500 charities and good causes in Britain and beyond since 2005.
However, the organization says that previous “outdated” lottery limits have led to charities losing out on a further £45m of funding.
Announcing the new upper limit, Davis indicated that the limit could be raised to £100m subject to certain conditions on transparency being met by the charity lottery sector.
The minister said: "I am sympathetic to calls from the largest society lotteries to raise the annual sales limit even further. However this is a significant increase, and I am concerned that the regulatory framework is not currently sufficiently rigorous for societies raising funds at this scale.
"It is therefore my ambition to launch a further consultation looking at giving large society lotteries the choice of a £50m or £100m annual licence, with regulatory requirements in proportion to their size."
Ms Govier pledged to engage “fully and constructively” with the UK government to help achieve this target.
“People’s Postcode Lottery stands ready to work with the Department for Culture, Media and Sport, and the Gambling Commission, to ensure a £100m limit for society lotteries can be implemented as soon as possible,” she said.
The new £50m limit has been welcomed by charities across Britain who rely on lotteries for much of their funding.
Laura Lee, chief executive of cancer support charity Maggie’s, said: “We added our voice to this important campaign to raise the limits in order to maximise funding for charities across Britain, including Maggie’s.
“Over the past decade, we have received more than £13m from players of People’s Postcode Lottery to support thousands of people living with cancer.
“By reducing costs and red tape, while potentially increasing the amount we receive, a new limit will help us to support many more.”
Jo Yule, chief executive of Missing People, which works to reunite families, said: “This is a great outcome for charities small and large alike.
“The law needed to change to ensure good causes were not going to miss out on much needed funding.
“Missing People has received more than £6m over the past ten years from players of People’s Postcode Lottery which has enabled us to provide round the clock help to vulnerable people who are thinking of leaving home, those who have already left, and their families. This support had been vital.”
