More than 100 backbench Labour MPs have signed a letter addressed to the Chancellor calling for an increase in gambling fees in order to raise the £3.2bn required to lift the two-child benefit cap.

In the letter, Gambling Reform APPG chairs Alex Ballinger and Beccy Cooper state there is a “compelling” case to double the levy on GGR across the sector, in line with recommendations produced by the Institute for Public Policy Research.

“No child should be growing up in poverty while gambling companies continue to enjoy record profits,” said Ballinger. “Harms from gambling place a huge burden on our public services, costing the Exchequer over £1bn a year.”

“It’s time to confront these excessive profits, reduce gambling-related harm, tackle poverty, and ensure gambling is taxed fairly.”

The IPPR’s report proposed increasing RGD from 21 percent to 50 percent, MGD from 20 percent to 50 percent, and GBD from 15 percent to 30 percent. However, the Betting and Gaming Council said the move would be “short-sighted, harming jobs, investment, and sports funding, while failing to deliver more revenue.”

In response to the MPs’ letter, Chancellor Rachel Reeves told ITV the IPPG’s recommendations were “on the table,” but refused to be drawn further.

“I’ll set out the plans on the taxation of gambling – and indeed of other areas – in my Budget on 26 November.”