Rachel Reeves is under increasing pressure to implement higher taxes on major gambling companies in order to fund the elimination of the two-child limit policy.
Over 100 Labour MPs have expressed support for the proposal put forth by Gordon Brown to target tax increases specifically on lucrative sectors of the gambling industry, such as online casinos and slot machines.
In a letter addressed to the Chancellor, the group has emphasized the urgent need for a focused levy on harmful online gambling services to combat child poverty effectively.
The suggested measures, formulated by the IPPR think tank and initially disclosed by the Mirror last month, have the potential to generate up to £3.2 billion, a sum that could cover the expenses associated with removing the two-child limit and the benefit cap.
Alex Ballinger, one of the signatories of the letter and a member of the All-Party Parliamentary Groups focusing on gambling reform, remarked, “It is unacceptable for children to be living in poverty while gambling corporations achieve record profits. The prevalence of gambling-related harm is on the rise, yet gambling remains exempt from VAT.”
This development coincides with mounting pressure on the government to abandon the Conservative policy, which is expected to be a contentious issue at the upcoming Labour party conference.
Introduced in 2017, the two-child limit policy restricts eligibility for Child Tax Credit and Universal Credit to the first two children in each household.
Last year, the Prime Minister established a child poverty taskforce to explore strategies for reducing the number of children experiencing financial hardship.
A government source indicated that deliberations are ongoing, and no final decision has been reached regarding the fate of the two-child limit following reports suggesting its potential removal.
Education Secretary Bridget Phillipson, a member of the taskforce, recently criticized the policy as “spiteful,” implying that its discontinuation might be imminent.
Dame Meg Hillier, a senior MP, emphasized the imperative of addressing child poverty, stating that lifting children out of poverty should be a top priority. She highlighted the potential impact of abolishing the cap on child poverty levels.
Rachel Reeves, the Chancellor, affirmed her commitment to reducing child poverty, reiterating the government’s dedication to ensuring fewer children live in poverty by the end of their term.
Addressing the issue of gambling taxes, Reeves mentioned that an inquiry into gambling taxation had been initiated during her tenure as Chancellor and that detailed plans regarding gambling taxation and other areas would be outlined in the upcoming Budget on November 26.
A spokesperson from the Department for Work and Pensions stressed the importance of providing every child with equal opportunities, outlining the taskforce’s upcoming strategy to combat the underlying causes of child poverty. Additionally, significant investments have been made to support children’s development through various programs and initiatives.