Controversial two-child benefit cap ‘plunges extra 30,000 children into poverty since Labour came to power'

Independent

03-04-2025

An extra 30,000 children have been pulled into poverty by the controversial 'two-child limit' on benefits since Labour came to power, according to new research ahead of the eight anniversary of the policy.
Last July ministers said they would consider ditching the 'cruel' cap, in a bid to head off a backbench Labour revolt on the issue.
separate moves to slash an extra £5 billion from the welfare bill are set to drive another 50,000 kids into poverty.
The cap now affects more than 1.6 million children, by limiting welfare payments to the first two children in most families.
New costings from Child Poverty Action Group (CPAG) show another 109 more children are pulled into poverty by the policy every day.
And the number of children affected will continue to increase until 2035 - when the first children born under the turn 18.
The charity says that scrapping the cap would be the most cost-effective way to lift kids out of poverty.
Were the policy to be dumped, 350,000 children would be lifted from poverty at a stroke, it adds. The depth of the poverty experienced by another 800,000 children would be reduced.
Chief executive of the CPAG Alison Garnham said: 'Every day the policy forces families to go hungry and damages the life chances of children up and down the country. Reducing the record high levels of child poverty in the UK will require a whole government effort, but abolishing the two-child limit is the essential first step.'
Any effort to tackle child poverty will "fall flat on its face" if the two-child limit is not abandoned, she added.
She said that while it would cost around £2 billion, it would be cheaper than other options.
Another possibility, increasing the child element of Universal Credit by £17 a week would cost £3 billion.
CPAG warns that child poverty is at a record high affecting 4.5 million children, up from 3.6 million in 2010/11. The charity also estimates that unless the government takes substantive action, 4.8m children will be in poverty by 2030.
Charities, unions and even former home secretary Suella Braverman have all urged Keir Starmer to dump the cap, brought in as one of former Conservative chancellor George Osborne's austerity measures.
The government is due to publish its new child poverty plan this spring, although the End Child Poverty Coalition has said it believes the document might not come until June.
A government spokesman said: 'No one should be living in poverty, and we know that the best route out of poverty for struggling families is well paid, secure work.
'That is why we are reforming our broken welfare system, so it helps people into good jobs, boosting living standards and putting money in people's pockets.
'Alongside this, our Child Poverty Taskforce is building an ambitious strategy to give all children the best start in life while we increase the Living Wage, uprate benefits, and support 700,000 of the poorest families by introducing a Fair Repayment Rate on Universal Credit deductions to help low-income households.'