Rachel Reeves is under renewed pressure to increase taxes on gambling companies in order to fund the removal of the two-child limit. Over 100 Labour MPs have supported former Prime Minister Gordon Brown’s call for targeted tax hikes on lucrative sectors of the gambling industry, such as online casinos and slot machines.
In a letter to the Chancellor, the group emphasized 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 reported by the Mirror, have the potential to generate up to £3.2 billion to cover the expenses associated with eliminating the two-child limit and the benefit cap.
Alex Ballinger, a signatory of the letter and a member of the All-Party Parliamentary Groups on gambling reform, highlighted the disparity between growing gambling-related harms and the tax exemption afforded to the industry. The government is facing mounting pressure to reconsider the two-child limit policy, which is expected to be a contentious topic at the upcoming Labour conference.
Initially implemented in 2017, the two-child limit currently restricts claims for Child Tax Credit and Universal Credit to the first two children in each family. Last year, the Prime Minister established a child poverty taskforce to explore strategies for reducing the number of children living in challenging circumstances.
Education Secretary Bridget Phillipson, a taskforce member, recently criticized the policy as “spiteful,” indicating a potential inclination towards its removal. Dame Meg Hillier, a prominent MP, emphasized the importance of tackling child poverty, suggesting that eliminating the cap could significantly alleviate the situation for hundreds of thousands of children.
Chancellor Rachel Reeves reiterated her commitment to reducing child poverty, emphasizing that the government aims to have fewer children in poverty by the end of their term. She assured that the child poverty task force’s findings will be addressed in the upcoming Budget and expressed determination to address the issue through appropriate measures.
Regarding gambling taxes, Reeves stated that she had already initiated an inquiry into gambling taxation as Chancellor and intends to present detailed plans in the Budget concerning the taxation of gambling and other sectors. A spokesperson from the DWP highlighted ongoing efforts to combat child poverty through strategic investments in children’s development programs and essential support services.
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