Chancellor Rachel Reeves is under renewed pressure to increase taxes on major gambling companies in order to fund the elimination of the two-child limit. Over 100 Labour MPs have supported former Prime Minister Gordon Brown’s call to target tax hikes specifically on highly profitable sectors of the gambling industry, such as online casinos and slot machines.
A group of MPs has sent a letter to the Chancellor, highlighting the urgent need for a focused levy on harmful online gambling products to address child poverty. The proposed measures, developed by the IPPR think tank and initially disclosed by the Mirror last month, have the potential to generate up to £3.2 billion, which could offset the expenses of abolishing the two-child limit and the benefit cap.
Signatory Alex Ballinger, a member of the All-Party Parliamentary Groups on gambling reform, emphasized the necessity of taking action, stating that it is unacceptable for children to live in poverty while gambling firms rake in substantial profits. The issue of the two-child limit is set to be a contentious topic at the upcoming Labour Party conference, with mounting pressure on the government to rescind the policy.
The two-child limit, implemented in 2017, restricts entitlement to Child Tax Credit and Universal Credit to the first two children in each family. In response to growing concerns about child poverty, the Prime Minister established a child poverty taskforce to explore ways to reduce the number of children experiencing hardship.
Although reports suggest that the taskforce may recommend the elimination of the two-child limit, a Government source has indicated that discussions are ongoing, and no final decision has been made. Education Secretary Bridget Phillipson, a taskforce member, has criticized the policy as “spiteful,” raising hopes that it may be revoked.
Dame Meg Hillier, a prominent MP, emphasized the urgency of addressing child poverty, asserting that lifting children out of poverty should be a top priority. She expressed confidence in the taskforce’s potential to significantly reduce child poverty levels, emphasizing the importance of investing in children across the country.
Chancellor Rachel Reeves affirmed her commitment to reducing child poverty, stressing that the government aims to have fewer children living in poverty by the end of the parliamentary term. Regarding gambling taxes, she mentioned plans to address taxation issues, including those related to gambling, in the upcoming Budget announcement.
A spokesperson from the Department for Work and Pensions emphasized the importance of supporting all children, regardless of their background, to ensure they have a strong start in life. The government is investing in various initiatives aimed at addressing the root causes of child poverty, including funding for child development programs, free school meals expansion, and provisions to prevent hunger during school holidays.