Campaigners are urging the UK government to impose higher taxes on gambling firms to abolish the controversial two-child benefit cap, a move that could lift a quarter of a million children out of poverty.
According to research by the End Child Poverty Coalition, scrapping the policy—which restricts welfare payments for families with more than two children—would cost around £1.3 billion annually. This sum, they argue, could be covered by increasing taxes on the booming gambling industry.
The Human Cost of the Two-Child Cap
Introduced in 2017, the two-child limit denies additional Universal Credit or Child Tax Credit support for third or subsequent children born after April of that year. Critics say it disproportionately affects low-income families, pushing many deeper into hardship.
"This cruel policy forces parents to make impossible choices between feeding their children and paying bills," said Alison Garnham, chief executive of Child Poverty Action Group.
Gambling Tax: A Potential Solution?
The gambling sector generated £15.1 billion in gross gambling yield last year, yet contributes just £3.2 billion in tax—a rate campaigners describe as "historically low."
A modest tax increase could:
- Fund the removal of the two-child cap
- Support struggling families
- Reduce long-term costs to public services
Political Reactions
While Labour has pledged to scrap the cap if elected, the Conservatives maintain it ensures "fairness" for taxpayers. The Liberal Democrats and SNP have both backed calls for gambling tax reforms.
With 4.2 million UK children currently living in poverty, the debate over funding solutions is likely to intensify as the general election approaches.
