What is the two-child benefit limit and will Keir Starmer scrap it

Daily Mirror

6 days ago

In the clearest hint yet Labour could ditch the policy the Education Secretary Bridget Phillipson said the policy - introduced by George Osborne - had pushed kids into poverty
Bridget Phillipson has insisted scrapping the two-child benefit limit is an option "on the table" to reduce poverty.
In the clearest hint yet Labour could ditch the policy the Education Secretary said the policy - introduced by George Osborne - has pushed kids into poverty. Ms Phillipson also said it will be the "moral mission" of the Labour government to ensure fewer children grow up in poverty.
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She added: "The changes to the social security system the Conservatives introduced haven't had an impact on the decisions people are making around family size. All it has done has pushed more children into poverty."
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Ms Phillipson's comments came after the government faced a backlash for delaying the publication of a major strategy on tackling grim rates of child poverty. It had been due to report in the coming weeks but has been pushed back to the Autumn to align with the Budget. It means any official decision on the two-child benefit limit may be some months away. Here The Mirror looks at the policy and how many kids are impacted by it.
What is the two-child benefit limit?
People on benefits are able to claim additional amounts of Child Tax Credit and Universal Credit for their children.
But the two-child benefit limit, which applies to kids born after April 2017, restricts parents from claiming for a third or subsequent child. An exception was made for children born as a result of rape. It is separate from Child Benefit.
When was it introduced?
It was first announced by austerity Chancellor George Osbrone in 2015 and was one of the most severe cuts to the welfare state. It came into force two years later in April 2017.
How many children are impacted?
More than 1.5million children are affected by the policy, according to the latest figures. But it estimated an extra 108 kids are impacted every single day because it applies to all children born after April 2017.
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They say the number of children affected will continue to rise until 2035. This is when the first child hit by the policy will turn 18.
How much does a family lose?
It depends on the size of the family and the circumstances. The Institute for Fiscal Studies suggested last year a single parent with three children will be £3,455 worse off each year because of the policy.
How much would it cost?
Estimates for the cost of scrapping the policy vary. But the Resolution Foundation think tank has estimated it would be around £3.5 billion by the end of this Parliament (2029/30). Some organisations have suggested it would be lower.
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How many children could be lifted out of poverty?
Experts argue if the policy was scrapped by Labour it would be the most effective - and immediate - way of reducing child poverty. Charities believe it could pull 350,000 kids out of poverty overnight.
If it isn't scrapped many expect rates of child poverty to continue to rise.
Will Keir Starmer scrap it?
The PM has previously resisted calls to scrap the measure and seven Labour MPs were suspended for voting against the government last summer over the issue, including ex-Shadow Chancellor John McDonnell.
But reports over the weekend claimed the PM is now open to abolishing the two-child limit, which has been labelled "cruel" by Gordon Brown. No10 insisted on Tuesday the government is "not going to rule anything out" in attempts to tackle poverty. But any formal decision is not expected to be formally announced until the Budget.