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Yahoo
6 days ago
- Business
- Yahoo
How much money could families get if Labour scraps two-child benefit cap?
Scrapping the two-child benefit cap could lift up to 470,000 children out of poverty, according to the latest estimates, by allowing low-income families to claim an extra £3,513 per year in universal credit for every extra child. After months of firm support for maintaining the limit, Prime Minister Sir Keir Starmer has appeared to leave the door open to the possibility of lifting the limit, put in place by the Conservative government in 2017. 'We'll look at all options of driving down child poverty,' Sir Keir said last week, in response to questions on whether he would scrap it. It came after mounting pressure from his own MPs and Reform leader Nigel Farage, who committed to scrapping the limit if he were PM. There are 1.2 million families with three or more children in the UK and around 370,000 of these are households on universal credit (UC). Families receiving UC - who are on low or no income - receive an extra £339 each month for their first child born before 2017, and £292.81 for first or second children born after 2017. This amounts to £7,581 per year for families with two children. But in most cases, parents are unable to claim UC benefits for any further children. There are rare exemptions, for example, in the case of twins, or adopted children. Most families can still claim general child benefit payments for more than two children, which amounts to £897 per child per year. But if the government scrapped the two-child benefit cap, families on UC could claim a further £3,513 per year for every extra child. However, there is an upper limit to how much families can claim in benefits with an overall cap of £22,020 a year, or £25,323 for households in London. The number of children living in poor households has been steadily increasing over the past decade, with 4.5 million children - around 1 in 3 - now living in poverty. Poverty can be defined in several ways but the Department for Work and Pensions (DWP) uses 'relative low income' as a marker, referring to people in households which earn below 60 per cent of the median income of £36,700 in 2024, or £14,680. Some of these children are going without essentials, according to the Joseph Rowntree Foundation, such as food, heating, clothing or basic toiletries. Removing the two-child benefit cap could lift 350,000 out of poverty, according to analysis from researchers at the Child Poverty Action Group (CPAG). A further 700,000 children could see their lives improved with the extra cash, their research has found. Meanwhile, the Resolution Foundation has estimated that around 470,000 children could be taken out of poverty by lifting the cap, or 280,000 if the limit was extended to three children. Since the Labour government came into power in July last year, some 37,000 more children have been pushed into poverty by the two-child limit, according to CPAG estimates. 'No road to better living standards, economic growth and wider opportunities starts with record child poverty. The policy must go - and sooner rather than later,' said CPAG's CEO Alison Garnham. Since the cap applies to families receiving UC, the children affected are in low-income households. And 6 in 10 families affected by the two-child limit have at least one parent in work, CPAG found. The estimated cost of removing the two-child limit, extending it to three children, or removing a household cap varies. Getting rid of the cap could cost the government £3.5bn in 2029/30, according to estimates from think tank the Resolution Foundation earlier this year. Meanwhile, CPAG suggests that the move would cost £2bn. The Independent's own calculations suggest that extending the limit to three children could cost at least £1.3 bn a year; assuming that 370,000 households claim an extra £3,513 of UC each year. Consecutive governments have refused to commit to removing the cap, despite its unpopularity with voters. Last year, Sir Keir enforced the whip on seven Labour MPs who voted against their party to oppose the two-child benefit cap. The current Labour government had consistently maintained that they would not take action to remove the cap, due to tight resources in the budget; yet Sir Keir's statements last week appeared to open up the possibility of a U-turn.
Yahoo
28-05-2025
- Business
- Yahoo
16 per cent of pupils have skipped school after being 'priced out the system'
Children from disadvantaged backgrounds are being forced to skip school because their parents cannot afford meals, uniforms and trips, according to a new study. The survey, which was commissioned by Child Poverty Action Group (CPAG), found that 16% of children of secondary school age have skipped a day of school because they did not have something they needed. This figure increased to 26% for children eligible for free school meals. The Government has been urged to expand the free school meals scheme across England (Image: Ben Birchall/PA Wire) The charity is calling for the Government to expand the free school meals scheme to more families across England. The poll of some 1700 school children between the ages of 11 and 18 found that 47% of those who missed days of school did so because they did not have the right uniform. It was also found that 26% had missed school because they did not have enough money to attend school trips. A member of staff at a secondary school in Scotland told researchers: 'We sometimes receive calls to the school to say a certain pupil can't come in today because they maybe only have one uniform and that's in the washing and it's not dry, so they'll be off today.' A secondary school pupil in England said: 'I miss (out on) enrichment week and trips, it's too much (money).' The issue was highlighted by teachers and students (Image: PA) Sainsbury's set to axe three key services in UK stores 'by early summer' UK facing youth unemployment crisis as young people not prepared for work Asda urgently recalls item in which a child could become 'tangled or trapped in' Kate Anstey, head of education at CPAG, said: 'Children in poverty aren't getting the real deal at school because they don't have money to participate – or even get to the school gates. 'From not being able to afford meals or uniform to poor mental health, lack of money at home means young people are missing school – effectively priced out of the system. 'Government must do more to support living standards for families so kids aren't locked out of learning – including scrapping the two-child limit and expanding eligibility for free school meals.' A Government spokesperson said: 'We are determined to reduce child poverty through wide-ranging action as part of our Child Poverty Taskforce, breaking the unfair link between background and opportunity. 'This Government has inherited a system with baked-in inequalities, which we're tackling head-on through our Plan for Change by rolling out free breakfast clubs in every primary, providing mental health support in every school, and investing over £3 billion in Pupil Premium to support those children who need it most. 'Through our Children's Wellbeing and Schools Bill, we are also changing the law to limit the number of branded items schools can require, which alongside free breakfast clubs could put £500 a year back into working parents' pockets.'
Daily Mirror
28-05-2025
- Health
- Daily Mirror
Children missing school over uniform and trips costs, miserable study shows
Some 16% of pupils aged 11-18 have missed school at least once because their parents couldn't afford something they needed to attend, such as branded uniform or kit Some 16% of pupils aged 11-18 have missed school at least once because their parents couldn't afford something they needed to attend, polling shows. This rises to 26% among pupils who receive free lunches, according to the Child Poverty Action Group's (CPAG) poll. Almost half (47%) of young people who missed school said they did not have the correct uniform or kit. More than a quarter (26%) skipped school because they couldn't afford transport to get to school, while 27% didn't turn up because of a lack of money for going on trips. Children who receive free school meals (FSM) were more than twice as likely to be sent home from school for not having the right uniform or kit as their peers (8% compared to 3% of all pupils). More than one in five (21%) young people in receipt of FSM have missed school because of mental health challenges, such as feeling anxious or depressed, compared to 17% in families who aren't eligible. One secondary school staff member told CPAG they sometimes receive calls from parents to say a pupil can't come in because they 'only have one uniform and that's in the washing and it's not dry'. And a student told the charity: 'A lot of people lose confidence over their financial embarrassed about how they're poor, they tend to be quieter.' Another pupil said: 'I sometimes have to buy my friends their food because they don't have any money in their accounts.' And one student added: 'All the trips are too expensive and a lot of parents can't afford them even when they work, especially if they have more than one child attending school.' More than two-thirds (68%) of secondary pupils in the UK attend schools that still require branded uniforms, although this varies across the nations, according to CPAG. The government is bringing in legislation in England to restrict the number of branded items to three in secondary schools or four if one item is a tie. It comes as Keir Starmer comes under mounting pressure to reverse the two-child benefit limit, which could lift thousands of kids out of poverty. Bridget Phillipson on Tuesday said scrapping the controversial two-child benefit limit is "on the table". CPAG demanded the Tory-era policy be ditched and also called for an expansion of free school meals. The Mirror is campaigning for free school meals for all primary school children. Kate Anstey, head of education at CPAG, said: 'Children in poverty aren't getting the real deal at school because they don't have money to participate – or even get to the school gates. From not being able to afford meals or uniform to poor mental health, lack of money at home means young people are missing school – effectively priced out of the system. 'Government must do more to support living standards for families so kids aren't locked out of learning – including scrapping the two-child limit and expanding eligibility for free school meals.' A government spokesperson said: 'We are determined to reduce child poverty through wide-ranging action as part of our Child Poverty Taskforce, breaking the unfair link between background and opportunity. 'This government has inherited a system with baked-in inequalities. 'Through our Children's Wellbeing and Schools Bill, we are also changing the law to limit the number of branded items schools can require, which alongside free breakfast clubs could put £500 a year back into working parents' pockets.' ::: Survation surveyed 1,701 state secondary school students aged 11-18 living in the UK between April 17 and May 1.
The Independent
24-05-2025
- Politics
- The Independent
Flagship child poverty policy delayed by Starmer
Labour has delayed its plan to cut child poverty until the autumn, sparking concerns and potential backbench rebellion over welfare cuts. The delay coincides with budget timings, raising hopes ministers might abolish the two-child benefit cap, which affects over 1.6 million children and is criticised for increasing child poverty. New costings from the Child Poverty Action Group (CPAG) reveal that the two-child limit pushes an additional 109 children into poverty each day, with the number affected projected to rise until 2035. Anti-poverty campaigner Lord John Bird criticised the delay, stating child poverty is forecast to rise under the Labour government, while the Trussell Trust suggested a delayed strategy with stronger measures is preferable to a rushed, inadequate one. The government insists it is committed to reducing child poverty through various measures, including expanding free breakfast clubs, capping school uniform costs, and increasing the national minimum wage.
The Independent
23-05-2025
- Business
- The Independent
Starmer delays tackling child poverty leaving tens of thousands on the brink
Labour has delayed a flagship plan designed to cut child poverty until the autumn, in a move that could leave tens of thousands on the brink. Just weeks after coming to power, ministers said they would consider ditching the 'cruel' two-child benefit cap in a bid to head off a backbench Labour revolt. But the overall strategy in which the policy was expected to be included has now been pushed back, despite fears of another rebellion on welfare cuts within weeks. But the new timings, designed to coincide with the budget, have raised some hopes ministers could push ahead and abolish the two-child cap, amid reports Sir Keir Starmer is in favour of the move, while his chief of staff Morgan McSweeney is less convinced. Both are under increasing pressure from Labour backbenchers on the issue. The benefits cap affects more than 1.6 million children by limiting welfare payments to the first two children in most families. New costings released recently by the Child Poverty Action Group (CPAG) show another 109 more children are pulled into poverty by the policy every day. The number 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. It it were dumped, 350,000 children would be lifted from poverty at a stroke, while the depth of the poverty experienced by another 800,000 children would be reduced. As well as pressure over the cap, No 10 is still facing a potential rebellion from Labour MPs next month when tough welfare cuts, including to disability payments, are due to be voted on in the House of Commons, despite his partial U-turn on winter fuel payments earlier this week. Downing Street has insisted the government is taking a "comprehensive approach" to child poverty, including rolling out free breakfast clubs, increasing the number of affordable homes, and raising the minimum wage. Lord John Bird, an anti-poverty campaigner and founder of the Big Issue, criticised news of the delay and said ministers had "just kicked the issue of child poverty into the long grass". He added: "The impact of their inaction will be grave. It is shameful that child poverty is forecast to not fall, but rise significantly, to 31.5 per cent of children under this Labour government. "We need action now, not in six months or a year's time. I will relentlessly pursue my intervention of adding child poverty targets to the Children's Wellbeing and Schools Bill with the vigour that the 4.3 million children living in poverty in our country deserve." But Helen Barnard, from the Trussell Trust, which provides food banks, said: 'This may be good news. Better a delayed child poverty strategy with measures to really protect children… than one hitting the deadline but falling short on substance.'
