Labour is being advised to consider increasing taxes on major gambling companies to generate funds for combating child poverty, according to Lucy Powell. In an article for The Mirror, Powell, a contender for the deputy leadership position, commended the government for implementing free school breakfast clubs as a demonstration of Labour values in action. She also called for the elimination of the two-child benefit limit, a policy from the Conservative era that restricts Universal Credit to the first two children and is criticized for contributing to child poverty.

Powell highlighted a proposal by former Labour Prime Minister Gordon Brown, who proposed utilizing revenue from gambling firms to abolish the two-child benefit limit. She emphasized the importance of prioritizing child poverty alleviation and urged the government to consider Brown’s suggestions for generating additional funds. Powell stressed the need for Labour to clearly define who they are advocating for and to engage in constructive dialogues when necessary.

Powell’s rival, Bridget Phillipson, the head of the government’s child poverty taskforce and a potential candidate for the deputy leader role, also criticized the two-child benefit limit as “spiteful.” Phillipson indicated a willingness from Downing Street to address the issue by stating that all options, including removing the limit, are being considered by the taskforce.

Phillipson reiterated her commitment to combating child poverty as a top priority for a Labour government. She emphasized the importance of having a proactive approach within the government to achieve the party’s goals rather than merely making statements from the sidelines. The Education Secretary’s remarks follow Powell’s call for a more definitive stance from the government on eliminating the two-child benefit limit in their forthcoming child poverty strategy.

Overall, both Powell and Phillipson are advocating for concrete actions to tackle child poverty, with a focus on policy changes and financial strategies to make a substantial impact on the issue.