Eleven Scottish Labour Members of Parliament, led by Patricia Ferguson, Chair of the Scottish Affairs committee, are urging Chancellor Rachel Reeves to back a special tax on gambling industry profits to eliminate the current two-child benefit cap. Frustration is mounting among Labour MPs over the UK Government’s decision to uphold the benefits cap initially introduced by the Conservative party.
Former Prime Minister Gordon Brown is spearheading the campaign for the cap’s removal, with speculation suggesting an announcement may come in the upcoming Budget. ITV reports that 101 MPs have endorsed Brown’s plan to finance the end of the cap by targeting online betting companies’ earnings.
In a letter to the chancellor, Alex Ballinger and Beccy Cooper from the All-Party Parliamentary Group on Gambling Reform made a strong case for a specific levy on harmful online gambling products. They propose using the generated funds to eliminate the two-child cap, potentially lifting hundreds of thousands of disadvantaged children out of poverty. The letter was endorsed by eleven Scottish MPs, including Euan Stainbank, Graeme Downie, Irene Campbell, Joani Reid, Kirsteen Sullivan, Lillian Jones, Patricia Ferguson, and Scott Arthur.
Tracy Gilbert, Maureen Burke, and Martin Rhodes have also lent their support to the cause. Ballinger, MP for Halesowen, emphasized the need to address the disparity between child poverty and flourishing gambling profits, which burden public services and cost the government over £1 billion annually.
The MPs are advocating for Reeves to endorse proposed changes from the Institute for Public Policy Research (IPPR) to potentially generate an additional £3.2 billion by 2026/27.
