More than 4.5 million children in the UK are currently living in poverty, with the numbers increasing by about 100,000 annually. This surge in child poverty is alarming as it mirrors the poverty levels witnessed in past industrial times. To address this issue, 15 anti-poverty charities, including Save the Children and The Trussell Trust, are advocating for the abolition of the Tory two-child rule that perpetuates child poverty.
Simultaneously, the gambling industry in the UK is experiencing exponential growth in profits, reaching £11.5 billion per year. Surprisingly, despite their substantial earnings, gambling companies benefit from significantly lower tax rates compared to other industries like oil and gas, car manufacturing, and technology. By leveraging the under-taxed profits of the gambling sector, it is proposed that 500,000 children could be lifted out of poverty.
In contrast to the UK’s low tax rate of 21% for online gambling profits, countries like the Netherlands, Austria, and Delaware impose tax rates ranging from 40% to 57%. Despite a more than 40% increase in remote gambling earnings over the past decade, the tax contribution remains disproportionately low. Aligning the UK’s tax rates with those of jurisdictions like Delaware could generate approximately £2 billion annually.
Taxing the gambling industry at a fair rate is seen as a viable solution to alleviate child poverty without affecting sectors like bingo, lotteries, or horse racing. The additional revenue generated could significantly impact the government’s ability to uplift hundreds of thousands of children out of poverty. Proper taxation of the betting industry is viewed as an investment in the well-being and future prospects of children, ensuring they have access to essential needs like food, clothing, and shelter.
By implementing equitable tax policies on the betting sector, not only can the government address child poverty effectively, but it can also create a more just and balanced fiscal system for the benefit of society as a whole.
