Former UK Prime Minister Gordon Brown urges higher iGaming taxes to combat child poverty

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Previous British Prime Minister Gordon Brown advocates for a boost in gaming tax by 30% as a measure to address child poverty within the U.K.

The ex-Labour Party leader and former UK Prime Minister, James Gordon Brown, endorsed a report by the progressive research organization Institute for Public Policy Research (IPPR). This report suggests that increasing taxes on gaming machines and online gambling (iGaming) could potentially rescue approximately 500,000 British children from poverty.

As per the report, the tax increase is designed to cover the budget deficit caused by the present Labour administration’s action of abolishing the two-child limit and benefit cap. In an article for The Guardian, Brown portrays raising taxes as the essential initial move in our struggle against child poverty.

According to him, the gaming industry significantly reduces its tax burden by registering numerous operators in foreign countries or tax-exempt regions. He further contends that industry data is questionable and inflated, specifically challenging the claim that companies collectively pay $6.01 billion per year in taxes and employ over 100,000 people. Brown asserts these figures are significantly overstated.

The Betting and Gaming Council quickly responded to these comments, labeling the proposed tax hike as financially irresponsible. In their opinion, such increases could drive gamblers towards the black market instead.

Brown urges more taxes to combat child poverty in the UK

In 2017, Chancellor George Osborne implemented a policy in the UK that limits family benefits to no more than two children for those claiming Universal Credit or Child Tax Credit, except under specific circumstances. As a result, families with more than two kids may not receive financial aid for additional children.

In this passage, Brown is referring to a group of individuals who grew up during 14 years of Conservative rule, which he describes as an era marked by austerity. He argues that one of the harshest actions taken during this time was to consider third and fourth children as less important than their older siblings, denying them financial support that was available to the first and second-born children.

According to the IPPR report, they recommend raising taxes on internet-based gambling establishments from 21% up to 50%. Additionally, they propose that taxes on slot machines and video gaming devices should also increase, moving from 20% to 50%.

In light of escalating and conspicuous child poverty rates, it appears reasonable to request that this sector increases its contribution slightly, states Henry Parkes, the main economist and leader of quantitative research at the IPPR.

In the year 2024, it was reported that a staggering 4.45 million children in the United Kingdom found themselves struggling in poverty, which is defined as living on less than 60% of the median household income after accounting for housing costs. This situation affected approximately one-third (31%) of all children in the country.

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2025-08-08 13:41