Rainbow Migration, an LGBT charity focused on advocating for LGBTQI+ asylum seekers in Britain, has received nearly £1 million in funding from the National Lottery over the 2023 and 2024 periods. The funds were allocated for staffing and operational costs, according to the charity's financial records.

The charity actively campaigns to end all migration detention for LGBT asylum seekers and aims to facilitate their arrival in the UK. This advocacy comes at a time when record numbers of migrants are reportedly securing visas by claiming to be lesbian, gay, or transgender. Rainbow Migration has launched a campaign, which it states has the support of 112 Members of Parliament, pushing for policy changes related to LGBT asylum seekers.

Criticism has emerged regarding the use of lottery funds for what some perceive as political campaigning. Rebecca Paul, Shadow Culture Secretary, stated that lottery money should be used transparently and responsibly, calling it a "disgrace" if the funds are used for "this sort of political campaigning." She added that taxpayers would question why their money is supporting such activities.

Rainbow Migration has also made strong claims about the UK's migration system, describing it as "built on the legacy of the colonial-era British Raj." In posts on its website, the charity has argued that the division of people into two sexes is rooted in colonialism and that "transphobia is a colonial export." Furthermore, a 2025 post accused the British state of harming LGBT asylum seekers to the extent that they are "metaphorically or literally killed," attributing their deaths to "deliberately hostile" state policies.

The charity assists individuals who claim to be fleeing homophobic countries and are seeking asylum in the UK based on their sexual orientation or gender identity. Under international law, individuals cannot be deported to countries where they face persecution or death, which critics argue makes it difficult to refuse applications from LGBT individuals, potentially leading to exploitation of the system.

Reports suggest that law firms have charged significant fees to advise migrants on how to claim to be gay to secure asylum. The rise in claims from lesbian, gay, and trans asylum seekers, which increased by 90 percent from 2021 to 2023, with 1,400 claims made, is highlighted by critics as evidence of system abuse.

A spokesperson for the National Lottery Community Fund defended the grants, stating, "We are proud of the work that our grant holders do to make life better for those who need it most." Rainbow Migration was contacted for comment on the matter.