Rachel Reeves is facing fresh pressure to raise taxes on gambling giants to pay for scrapping the two-child limit.
More than 100 Labour MPs have backed calls made by Gordon Brown to target tax hikes on highly profitable parts of the gambling industry – such as online casinos and slot machines.
The group has written to the Chancellor, saying there is a “compelling” case for a “targeted levy on harmful online gambling products” to alleviate child poverty.
The proposals, drawn up by the IPPR thinktank and first revealed by the Mirror last month, could raise up to £3.2billion, which could cover the cost of scrapping the two-child limit and the benefit cap.