Thinking about entering a lottery, but not sure whether to go for the Postcode Lottery or the National Lottery? You’re not the only one. These two well-known games pop up on adverts, billboards and in conversations with friends, yet they work in very different ways.
Some people play based on their postcode, while others choose their own numbers every week. The prizes can look very different too, ranging from cash and holidays to very large jackpots. With all these options, deciding which lottery suits you best is not always as straightforward as it might seem.
This guide breaks down the differences between the People’s Postcode Lottery and the National Lottery, looking at how each one works, what you could win, and what the odds look like. By the end, you will have a clear picture of what sets these two apart and what to expect when you take part.
What Is The Postcode Lottery?
The Postcode Lottery is a subscription-based lottery open to people living in Britain. Instead of picking numbers, you enter using your full postcode, such as AB1 2CD. Your entry stays the same for as long as your subscription is active, so there is no need to choose new numbers for each draw.
Draws are held on different days throughout the month, with winning postcodes picked at random. Everyone who has a ticket linked to a winning postcode receives a prize. Rewards can be cash or sometimes goods like cars or holidays, and the value depends on the type of draw. Because prizes are shared among those with the same winning postcode, payouts are divided if several households are in the draw.
Payments are taken monthly, usually by direct debit, and a portion of every ticket supports charities and community projects. That blend of regular entries and contributions to good causes is a key part of how the Postcode Lottery presents itself. Curious how that compares with choosing your own numbers instead?
What Is The National Lottery?
The National Lottery is the umbrella for several UK draw games, including Lotto, EuroMillions, Thunderball and Set For Life. Players buy a ticket and choose a line of numbers for the specific game they want to enter. If those numbers match the draw, a prize is paid, with draws taking place on fixed days each week.
Prizes range from smaller cash amounts for matching fewer numbers to very large jackpots in games like EuroMillions. Tickets can be bought online, in shops or via the official app, and part of the money raised funds projects in areas such as sport, arts and heritage. With the basics in mind, the next question is simple: what will you pay, and how do you pay?
Ticket Costs And Payment Methods
National Lottery ticket prices vary by game. Lotto lines cost £2, EuroMillions lines cost £2.50, and Thunderball entries are £1. You can pay at authorised retailers using cash or card, buy online with a debit card, or use the app.
The Postcode Lottery uses a subscription model. As of 2024, one ticket costs £12 per month, covering all draws for your postcode during that month. Payment is taken by direct debit, and you can change or cancel your subscription at any time. There is no single-draw, pay-in-shop option because entries are managed through your account.
In short, the National Lottery is pay-per-line whenever you want to enter, while the Postcode Lottery is a rolling monthly payment that keeps your postcode in every eligible draw. With costs clear, it helps to look at how entry and draw rules differ day to day.
How Do Tickets, Draws And Entry Rules Differ?
For the National Lottery, each ticket is valid for a specific draw. You decide which games and dates to play, pick your numbers for each line, and can play as often or as seldom as you like. Entries are available to players aged 18 and over, both online and at retailers.
The Postcode Lottery ties your entry to your address rather than to chosen numbers. Once subscribed, that postcode is placed into the relevant daily, weekend and monthly draws without any extra steps. Players must be 18 or over, and the subscription has to remain active for entries to count.
This difference in how entries are set up shapes the prizes that follow.
Prizes And Prize Tiers Compared
National Lottery games use prize tiers. In Lotto, for example, matching two main numbers earns a free Lucky Dip for a future draw, while matching more numbers leads to larger cash prizes, up to the jackpot for matching all six. EuroMillions jackpots can rise into nine figures, with several lower tiers that pay out smaller amounts for partial matches.
The Postcode Lottery uses a postcode-based structure. Daily draws select winning postcodes, and every subscriber within those postcodes receives a cash prize. Weekend and monthly events tend to offer higher-value payouts, and some monthly promotions can reach up to £1 million for a full winning postcode. Rather than tiers based on matched numbers, prize amounts are shared among all players in the winning postcode, so individual payouts depend on how many neighbours are in the draw.
Broadly, the National Lottery concentrates prize value into fewer, higher tiers, while the Postcode Lottery distributes prizes more widely across more frequent draws. That naturally leads to the next question: how do the odds compare?
How Do Odds Of Winning Compare Between The Two Lotteries?
Odds in the National Lottery depend on the game. The chance of winning the Lotto jackpot by matching all six main numbers is around 1 in 45 million. The likelihood of landing lower-tier prizes is much higher, though the payouts scale down accordingly.
In the People’s Postcode Lottery, outcomes are based on postcode selection and the spread of subscribers. Every active ticket is included in daily and weekly draws, with prizes awarded to the postcodes that come up. The operator reports that roughly one in three players receives a prize in a typical month, though values vary and prizes can be split among neighbours within the same postcode.
So while both products have long odds for their top awards, the Postcode Lottery places more emphasis on frequent, broadly shared distributions, whereas National Lottery games concentrate the largest sums into higher tiers. Once a prize lands, how is it paid?
How Are Winnings Paid And Claimed?
For National Lottery tickets bought in shops, smaller prizes can usually be collected at the retailer, with larger amounts claimed at designated Post Office branches or through the official claims process. Thresholds and procedures can vary by amount. For online or app entries, smaller wins are generally credited to your account automatically, with larger prizes paid by bank transfer after verification. Very large wins involve extra identity checks and a managed payout process.
Postcode Lottery prizes are paid directly to the bank account used for your subscription, and you are notified by email or post. There is no separate claim step for standard wins because your entry and payment details are already linked. Higher-value payouts may involve additional confirmation and a call from the team to arrange the next steps, including any publicity you agree to.
Keep your contact and bank details up to date so payments are not delayed. Understanding how each lottery works, what it costs and how prizes are structured should make it easier to decide which one fits what you want from a game.
If you ever have concerns about your gambling, support is available at BeGambleAware.org or by calling the National Gambling Helpline on 0808 8020 133.
**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.