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We could reduce child poverty by half a million

Blog, Poverty and Inequality, Universal Credit, Universal Credit · 8 August, 2025

Child poverty has steadily increased over the past 15 years, but it is clear how that trend can be reversed. It requires government and institutions to prioritise poverty reduction, and a significant financial investment in measures that will have an impact.

In the autumn, the Government will publish its long-awaited Child Poverty Strategy – laying out what government will do alone, as well as coordinating institutions across society in the fight against child poverty. The signs are that the strategy will say good things. The big question mark hanging over it is whether, in the current fiscal context, the government will find the resources to make the financial investment that is necessary.

This week the Institute of Public Policy Research, supported by former Prime Minister Gordon Brown, has published research showing that increasing gambling levies to the levels in many of our neighbouring European countries would raise £3.2Bn – enough, if invested well, to lift half a million children from poverty. The charity Action for Children produced research earlier this year that found that the most cost effective way to invest this money would be to end the two child benefit rule. This rule denies Universal Credit, the main benefit supporting families on low incomes, to third and later children. It is a major driver of poverty, with large families having a poverty rate 50% higher than smaller families.

The revenues from levies on gambling would open the door to abolishing the two child rule. Over the coming weeks, faith leaders, charities and politicians will be reiterating the case for government to invest in our children, and begin to turn the tide on child poverty. You can add your voice today by signing Action for Children’s petition here.

Sign the petition now!

In the News: 

Gordon Brown urges Rachel Reeves to hike gambling taxes at Budget – BBC News 

The gambling industry is a licence to print money. Tax it properly – and turbocharge the fight against child poverty | Gordon Brown | The Guardian 

Lord Williams backs Gordon Brown’s child-poverty campaign– Church Times 

Watch: 

Gordon Brown calls on Labour to scrap two-child benefit cap | ITV  

Filed Under: Blog, Poverty and Inequality, Universal Credit, Universal Credit

Paul Morrison

I am the policy advisor with particular responsibility for issues around the economy including poverty and inequality. Prior to working for the Methodist Church I was a postdoctoral researcher at Imperial College studying viral disease and vaccine design.

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