Chancellor Rachel Reeves is under renewed pressure to increase taxes on major gambling companies to fund the elimination of the two-child limit. Over 100 Labour MPs have supported the call by former Prime Minister Gordon Brown to impose tax hikes specifically on highly profitable sectors of the gambling industry, such as online casinos and slot machines.
A group of MPs has urged the Chancellor to consider implementing a targeted levy on harmful online gambling products as a means to address child poverty. The proposed measures, developed by the IPPR thinktank and initially disclosed by the Mirror, could generate up to £3.2 billion, potentially covering the expenses associated with ending the two-child limit and benefit cap.
Alex Ballinger, one of the signatories of the letter and a member of the All-Party Parliamentary Groups on gambling reform, emphasized the necessity of preventing children from growing up in poverty while gambling companies reap significant profits. The issue of gambling-related harm is escalating, yet gambling remains exempt from VAT.
Meanwhile, the Government is facing mounting pressure to abolish the two-child limit policy, which is expected to be a contentious topic at the upcoming Labour party conference. Introduced in 2017, the policy restricts claims for Child Tax Credit and Universal Credit to the first two children in each family.
Education Secretary Bridget Phillipson, a member of the child poverty taskforce, recently labeled the policy as “spiteful,” hinting at the possibility of its removal. Dame Meg Hillier, a senior MP, expressed strong sentiments about addressing child poverty, highlighting the urgency of investing in children to uplift those living in hardship.
Chancellor Rachel Reeves affirmed her commitment to reducing child poverty, emphasizing the Government’s dedication to ensuring fewer children live in poverty by the end of the parliamentary term. She stated that the child poverty task force is currently active and will report its findings soon, with a response expected in the upcoming Budget.
Regarding gambling taxation, Reeves mentioned that she had initiated an inquiry into gambling taxation independently and will outline the taxation plans for the gambling industry and other sectors in the upcoming Budget announcement on November 26.
A spokesperson from the Department for Work and Pensions emphasized the importance of providing every child with equal opportunities for a good start in life. The child poverty taskforce is set to release a comprehensive strategy aimed at addressing the root causes of child poverty, with investments in children’s development through initiatives like best start family hubs, extended free school meals, and a crisis support package to prevent hunger among the most disadvantaged.