The idea for the Children's Party at the Palace came after a visit by Her Majesty the Queen to HIT's London offices which had won two Queen's Export Awards. In 2005, Peter was asked to consider ideas for a large scale children's event which could be linked to the Queen's 80th Birthday Celebrations and the Children's Party at the Palace was the result. Peter was able to use his contacts and influence in the media world to get the agreement of major children's labels to share the stage together which made the occasion unique.

All children living in the UK aged between 4 and 14 were invited to apply for tickets to the event through a national ballot run by the BBC. On June 26 2006 2,000 children and 1,000 adults (parents, grandparents or guardians), selected from millions of applicants, attended the party in the grounds of Buckingham Palace. The day concluded with a spectacular stage show broadcast live on BBC1, attracting almost eight million viewers. The show centred around the quest to find The Queen's stolen handbag.