Labour member Lucy Powell has suggested increasing taxes on major gambling companies to generate funds for combating child poverty. In an article for The Mirror, Powell commended the government’s implementation of free school breakfast clubs as a demonstration of Labour values in action. She emphasized the need to eliminate the two-child benefit limit, a policy from the Conservative era that has been criticized for trapping many children in poverty.
Powell highlighted former Labour Prime Minister Gordon Brown’s proposal to revamp gambling levies, citing research from the Institute for Public Policy Research estimating that such changes could generate £3.2 billion to support scrapping the two-child benefit cap. She stressed the importance of prioritizing lifting children out of poverty and urged consideration of Brown’s suggestions to raise funds from gambling firms.
Additionally, Powell emphasized the necessity for the Labour party to clearly define its mission in addressing child poverty and advocating for policies like lifting the two-child benefits cap. In contrast, her competitor Bridget Phillipson, leading the government’s child poverty taskforce and a favored candidate for the deputy leader role, condemned the two-child benefit limit as “spiteful.”
Phillipson signaled a potential shift in government stance on the issue, stating that “everything is on the table,” including the removal of the two-child limit as part of the taskforce’s initiatives. She reiterated her commitment to prioritizing the Labour Government’s efforts to combat child poverty and emphasized the need for proactive leadership within the government to drive this mission forward effectively.
The Education Secretary’s remarks followed Powell’s call for clearer intentions from the government regarding the elimination of the two-child limit in the upcoming child poverty strategy. Powell’s intervention was seen as influencing the government’s approach to the issue, with one Labour MP supporting her efforts.