Chancellor Rachel Reeves is under renewed pressure to increase taxes on major gambling companies to fund the elimination of the two-child limit policy.
Over 100 Labour MPs have supported former Prime Minister Gordon Brown’s call to impose tax hikes specifically on lucrative sectors of the gambling industry, such as online casinos and slot machines.
In a letter to the Chancellor, the group argued for a targeted levy on harmful online gambling activities as a means to reduce child poverty.
Proposals put forth by the IPPR think tank, initially disclosed by the Mirror, suggest that implementing these tax measures could generate up to £3.2 billion, covering the expenses associated with ending the two-child limit and benefit cap.
Signatory of the letter, Alex Ballinger, a member of the All-Party Parliamentary Groups on gambling reform, emphasized the need to address the paradox of children living in poverty alongside soaring profits of gambling firms, calling attention to the VAT exemption on gambling.
Meanwhile, there is mounting pressure on the Government to scrap the two-child limit policy, with expectations that this issue will be a focal point at the upcoming Labour Party conference.
Initially introduced in 2017, the two-child limit restricts entitlements for Child Tax Credit and Universal Credit to the first two children in each family.
The Prime Minister established a child poverty taskforce last year to explore ways to reduce the number of children growing up in adverse conditions.
A Government source noted that deliberations are ongoing regarding the future of the two-child limit policy, following reports that the taskforce might recommend its repeal.
Education Secretary Bridget Phillipson, a taskforce member, recently criticized the policy as “spiteful,” indicating a potential inclination towards its abolition.
Dame Meg Hillier, a senior MP, expressed strong sentiments against neglecting the issue of child poverty, emphasizing the necessity to uplift children from impoverished conditions.
In response, Chancellor Rachel Reeves affirmed the Labour Party’s commitment to combating child poverty, highlighting that efforts are underway within the child poverty task force to address this pressing issue.
Regarding gambling taxes, Reeves assured that plans for taxation reforms, including those related to gambling, will be unveiled during the Budget presentation on November 26.
The Department for Work and Pensions underscored its commitment to creating a robust strategy through the child poverty taskforce to tackle the underlying causes of child poverty, emphasizing substantial investments in children’s development programs and support initiatives.
