This blog offers a clear and accurate explanation of how the People’s Postcode Lottery operates in Great Britain. It outlines who can take part, how draws and prizes tend to work, and what happens if your postcode is selected.
All information is written in plain English, so you can understand the rules without needing any prior knowledge of lotteries or gambling. Each section focuses on a different part of the process, helping you build a complete and factual picture of how this subscription lottery runs from entry, to prize payment.
What Are the Basic Postcode Lottery Rules?
The People’s Postcode Lottery is a subscription lottery in Great Britain, meaning you don’t buy a one-off ticket for a single draw. Instead, you pay a monthly fee (currently £12.25) which grants you a “ticket” for that month linked to a postcode. The subscription enters you into a suite of draws that month.
Your postcode acts like your ticket number (rather than picking your own numbers). For example, if your postcode is drawn in a particular draw and your subscription is active, every ticket in that postcode wins the same prize for that draw.
Prizes can vary by type of draw (daily, weekend, monthly, or special draws). Some are fixed amounts; others are shared amounts among multiple tickets in the same postcode. Because it’s a gambling activity, outcomes are random and no win is guaranteed.
A minimum of 30% of each ticket price supports charities and community causes.
How Do You Enter the UK Postcode Lottery?
To participate you must:
- Be aged 18 or over
- Reside in Great Britain (England, Scotland or Wales)
- Hold a valid UK postcode
- Use a UK bank account or acceptable payment method
You sign up online or by phone, provide your postcode, address and payment details, and then your subscription begins.
Once active, your ticket is automatically entered into every draw in that calendar month.
How Much Does It Cost to Play?
The standard subscription price is £12.25 per month. That fee does not change with the number of draws in a month; it covers all scheduled draws for that monthly period.
If you buy more than one ticket, each one costs the same monthly rate (i.e. two tickets cost £24.50).
In draws that pay a fixed amount per ticket (for example, the daily £1,000 draw), owning more tickets in the same postcode means you may receive the prize amount multiplied by the number of tickets if your postcode is drawn.
When and How Are Winners Announced?
Winning postcodes are published daily according to a Prize Draw Calendar on the official website.
Here are typical prize structures (2025):
- Daily Prize: Every day, 20 postcodes are drawn. For each of those postcodes, each ticket wins £1,000.
- Millionaire Street (Saturday draw): One postcode shares £1 million.
- Monthly £250,000 draw (May to November): Every ticket in the winning postcode wins £250,000.
- Postcode Millions (December): In December, one postcode sector wins a share of at least £18 million.
For the Millionaire Street draw, there is a statutory limit: a ticket’s maximum prize is 10% of total ticket sales for that draw, capped at £500,000 per ticket. If there are too few tickets in the winning postcode to absorb the full £1 million under that cap, the draw may expand to the surrounding postcode sector or district to distribute the remainder.
What Happens If You Win in the Postcode Lottery?
If your postcode is drawn and your ticket is valid, you become a winner for that draw. You’ll be contacted via your registered communication method (email, phone, postal mail as needed). You may also see your postcode listed in the published results.
Before awarding you the prize, the lottery may verify your identity, payment information and account details—especially for any higher value prizes.
Once verified, smaller cash prizes are usually transferred directly to your registered bank account, often within 28 days. In some instances of very large wins or special draws, more formal claims or verification steps may apply.
How Do You Claim Postcode Lottery Winnings?
In many cases, no separate claim form is needed: provided your account is current, and verification is complete.
For larger sums or special events, you may be asked to confirm ID or banking details. If postal payment is needed (cheque), it will go to your registered address. Always keep your contact and banking details up to date to avoid delays.
If a prize is unclaimed (for example, because the lottery cannot reach you), specific rules in the Terms & Conditions apply—such as time limits for claims. (Check the official site for the current timeframe.)
Do Postcode Lottery Winnings Affect Tax or Benefits?
You do not pay income tax on lottery winnings in the UK; the amount you receive is not reduced by tax.
However, if you receive means-tested benefits (for example, Universal Credit), the added prize money may push your capital above thresholds and affect your ongoing entitlement. The rules for this vary depending on the specific benefit. If you win a large sum, consider discussing it with a benefits adviser or local authority before making any changes.
What Rules Apply to Direct Debit Payments?
Most people pay the monthly subscription via Direct Debit (or other accepted payment method). You should receive notice in advance of payment. If a payment fails (for example, due to insufficient funds or banking error), your subscription may lapse for that month and you might not be entered into that month’s draws.
Banks in the UK offer the Direct Debit Guarantee, which protects you if payments are made in error. You may cancel your Direct Debit through your bank or by contacting the lottery’s customer services.
Are There Age or Residency Restrictions?
Yes. You must be 18 or older and have a valid address in Great Britain (England, Scotland or Wales). A UK postcode is required. While the official materials refer to “Great Britain” in their marketing and rules, the terms do not clearly state whether the lottery is open to residents of Northern Ireland or the Crown Dependencies—so if you live there, check whether your postcode is eligible before subscribing.
How Can You Cancel or Change Your Postcode Lottery Entry?
You may cancel your subscription at any time; there are no cancellation fees. If your ticket was valid for a draw that has already taken place and your postcode was drawn, you remain eligible to receive that prize.
If you move address and need to change postcode, alter the number of tickets, or change payment methods, you simply inform customer services ahead of the next payment period. Changes must be processed in time to apply to upcoming draws.
The People’s Postcode Lottery is a game of chance, meaning past outcomes don’t influence future ones and nothing can guarantee a win. Before you play, check how many draws are included, the potential prize structure, and the official Terms & Conditions for your area.
If you choose to participate, do so with money you can afford to lose. If ever you feel uncomfortable, you may contact the UK Gambling Commission’s Self-Exclude or support tools.
*All values (Bet Levels, Maximum Wins etc.) mentioned in relation to these games are subject to change at any time. Game features mentioned may not be available in some jurisdictions.
**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.