Shipley MP calls for raising gambling taxes to scrap two-child benefit cap

Anna Dixon MP for Shipley, has called on the Chancellor to increase taxes on betting companies as a means of addressing child poverty, ahead of the Budget later this autumn. 

In a letter sent to Rachel Reeves this week, which Ms Dixon signed along with over 100 of her fellow Labour MPs, she argues for a “targeted levy on harmful online gambling products” and for the funds generated to be allocated to ending the two-child benefit cap, as part of a wider strategy to tackle child poverty. 

The letter highlights that while betting companies in the UK have experienced significant growth in sales in recent years, they employ relatively few people and are often based outside the UK to reduce their tax liabilities. Consequently, these companies contribute “little value to the UK economy.” 

Ms Dixon has specifically proposed increasing the tax rate on the 'gross gambling yield', which is the money collected by betting companies after paying out winnings.  

The Institute for Public Policy Research estimates that the policy would generate an additional £3.2 billion in 2026/27. This funding could be used to eliminate the cap that restricts families from claiming benefits for more than their first two children, as well as the household benefit cap, which would bring approximately 500,000 children out of poverty nationally. 

According to statistics from The Health Foundation, the Bradford District has one of the highest rates of child poverty in the country, with over 40% of children in the city living in households with a "relative low income." 

Anna Dixon MP said of her hopes for November’s Budget: “It is unacceptable that we live in a country where gambling company profits soar, whilst millions of children live in poverty.  

“The issue of child poverty is particularly prescient across the Bradford District, and here in my constituency of Shipley, where we have thousands of children living in poverty.  

“This Labour Government has made significant progress in addressing child poverty since the last general election. Key measures include the rollout of free breakfast clubs in primary schools, the expansion of free school meals, the extension of 30 hours of free childcare to over 500,000 additional children, and the launch of the exciting new Young Futures Hubs. 

“But with the Budget coming, I want the Chancellor to build on this great start and go even further. Ending the two-child benefit cap would lift hundreds of thousands out of poverty almost immediately.  

“The harms from gambling have a significant impact on families across the country and on our public services. It’s time to confront these excessive profits, reduce gambling-related harm, tackle poverty, and ensure gambling is taxed fairly.”