Former Prime Minister Gordon Brown has demanded a major gambling tax to fight child poverty, urging higher levies on online casinos. A new report suggests this could raise £3.2bn to abolish the two-child benefit cap, lifting 500,000 children out of deprivation.
Therefore, the Institute for Public Policy Research (IPPR) proposes hiking taxes on online gambling from 21% to 50%. Brown insists this move would strike a crucial blow against Britain’s worsening child poverty crisis. However, the betting industry warns it could drive gamblers toward illegal markets.
Furthermore, online gambling has boomed in recent years, yet many operators avoid full UK taxation. The IPPR highlights that offshore-based firms pay minimal corporation tax and enjoy VAT exemptions. Brown argues these companies should contribute more, given gambling’s social harms.
Moreover, the gambling tax to fight child poverty would specifically target high-stakes online slots and casinos. Traditional lotteries and bingo halls would remain unaffected. IPPR economist Henry Parkes states the industry can afford higher taxes without reducing government revenue.
In addition, anti-poverty campaigners call the two-child limit the biggest barrier to reducing deprivation. Currently, 1.6 million children lose support due to this policy. Brown condemns it as “vindictive,” arguing third and fourth children are treated as “second-class citizens.”
Abolishing the cap would cost £3.2bn funded entirely by the proposed gambling tax. With child poverty projected to hit 4.8 million, Brown insists the policy change is urgent. He challenges Chancellor Rachel Reeves to make it a budget priority.
The Betting and Gaming Council rejects the plan as “reckless.” A spokesperson warns higher taxes could push users toward unregulated black-market sites. These platforms offer no consumer protections and pay zero UK taxes.
The industry also points to recent reforms that already cost firms £1bn in lost revenue. Further hikes, they argue, would harm jobs and economic growth. Yet campaigners counter that gambling profits should not outweigh child welfare.
The Department for Media, Culture, and Sport has yet to comment. However, the government faces mounting pressure to address child poverty. A national strategy is expected this autumn, with charities demanding bold action.
Brown’s gambling tax to fight child poverty plan adds fuel to the debate. As living costs rise, the moral and economic arguments grow harder to ignore. Whether ministers act or side with industry warnings remains to be seen. For now, the question lingers: Should gambling profits help rescue a generation from poverty? Brown’s answer is a resounding yes.
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