Lucy Powell, a candidate for the Labour deputy leadership, has suggested raising taxes on gambling firms to fund the abolition of the two-child benefit cap. The Manchester Central MP argued the party must be 'clear that our objective is to lift children out of poverty' by removing the limit.
Powell's proposal echoes a recent report by the Institute for Public Policy Research, backed by former Prime Minister Gordon Brown, which found that reforms to gambling levies could generate the £3.2bn needed to scrap the cap. The thinktank said scrapping the policy could lift 500,000 children out of poverty.
The two-child benefit cap, introduced by the Conservative government in 2015, restricts child tax credit and universal credit to the first two children in most households. Education Secretary Bridget Phillipson, who is also running for deputy leader, told the Guardian on Friday that abolishing the 'spiteful' cap is 'on the table'.
Powell, who was sacked as Commons leader in a recent reshuffle, positioned herself as an independent choice for deputy leader, saying she is 'not afraid to have difficult conversations' and acknowledging public exasperation with 'some mistakes' made by the government. She stressed the need to give 'a greater sense of who we're fighting for'.
Meanwhile, Phillipson is reportedly considering plans to end a subsidy that discounts two-thirds of Ofsted inspection costs for private schools. Allies said it is 'time every independent school paid its fair share', as taxpayers currently foot the bill for inspections that cost £6.5m in 2024-25, with only £2.2m recovered.
