Labour should consider increasing taxes on gambling companies to generate funds for combating child poverty, as proposed by Lucy Powell. Powell, a contender for the party’s deputy leadership, commended the government’s implementation of free school breakfast clubs as a demonstration of Labour’s values in action. She also urged ministers to eliminate the two-child benefit restriction, a policy from the previous Conservative administration that has been criticized for trapping many children in poverty.
Powell highlighted former Prime Minister Gordon Brown’s suggestion to reevaluate gambling levies, citing research from the Institute for Public Policy Research indicating that such a move could raise significant funds to abolish the two-child benefit limit. Emphasizing the importance of alleviating child poverty, she advocated for a clear objective to lift the cap, acknowledging that the responsibility lies with the Chancellor and Prime Minister to outline the budget.
Additionally, Powell stressed the need for the party to clearly define its stance on fighting for the marginalized and expressed willingness to engage in challenging discussions to drive necessary changes. Meanwhile, her rival Bridget Phillipson, leading the government’s child poverty taskforce, labeled the two-child benefit limit as “spiteful” and indicated Downing Street’s openness to reconsidering the policy. Phillipson affirmed her commitment to prioritizing child poverty eradication and asserted the need for proactive leadership within the government to achieve this goal.
The Education Secretary’s remarks followed Powell’s call for greater clarity from the government on removing the two-child limit in its upcoming child poverty strategy. Powell’s proactive stance was perceived to be influencing the conversation on the issue within the party.