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Two-child benefit cap – the cost, effect and what people are saying about it
Two-child benefit cap – the cost, effect and what people are saying about it

The Independent

time27-05-2025

  • Business
  • The Independent

Two-child benefit cap – the cost, effect and what people are saying about it

Anti-poverty campaigners have long called for the two-child cap to be scrapped, and now Reform UK has described removing it as 'the right thing to do'. Here, the PA news agency takes a look at what the policy is, the costs of doing away with it and what various parties are saying. – What is the two-child cap? The two-child cap or limit was first announced in 2015 by the Conservatives and came into effect in 2017. It restricts child tax credit and universal credit to the first two children in most households. It is a separate policy to the benefit cap. The benefit cap, introduced in 2013 under the then-Conservative and Liberal Democrat coalition government, sees the amount of benefits a household receives reduced to ensure claimants do not receive more than the limit. – What is the effect of the two-child cap? Organisations working in the sector argue that 109 children across the UK are pulled into poverty by the policy every day. Last month groups, including Unicef UK, the National Education Union, food bank organisation Trussell and the National Children's Bureau signed a letter which was handed in to the Treasury, saying the two-child limit 'has to go'. They warned: 'It cannot be scrapped for some families and not others as this would result in some of the most vulnerable families remaining in poverty – with no way to pull themselves out.' While the policy applies across the UK, the Scottish Government has pledged to mitigate the impacts for people there, although payments for this are not expected to begin until 2026. – How many children in the UK are currently living in poverty? Data published by the Government in March 2025 estimated the number of children living in poverty in the UK reached a record high. There were 4.45 million children estimated to be in households in relative low income, after housing costs, in the year to March 2024, data published by the Department for Work and Pensions (DWP) showed. The latest figure is the highest since comparable records for the UK began in 2002/03, having risen from an estimated 4.33 million in the year to March 2023. A household is considered to be in relative poverty if it is below 60% of the median income after housing costs. – How much would it cost to scrap the cap and what would be the effect? The Child Poverty Action Group (Cpag) said its analysis suggests an estimated 350,000 children would be lifted out of poverty immediately if the policy was scrapped. Estimates for the cost of scrapping the policy vary. The Resolution Foundation think tank has estimated it would be around £3.5 billion by the end of this Parliament (2029/30). Cpag and the Joseph Rowntree Foundation have lower estimates of around £2 billion for 2025/26, rising to £2.8 billion at the end of this Parliament (2029/30). The New Economics Foundation think tank estimates a cost of £1.9 billion from April 2025, rising to £2.6 billion by 29/30. The Resolution Foundation said the differences in calculations are as a result of different methodology and also an 'inherent uncertainty' in costing the policy because it is based on predicted birth rates. – What has the Government said? Last year, before becoming Prime Minister, Sir Keir said he would scrap the two-child limit 'in an ideal world' but added that 'we haven't got the resources to do it at the moment', with ministers since then citing economic constraints. Throughout their first year in office, the Labour Government has been under pressure from campaigners to scrap the cap, as well as facing anger over winter fuel payments and controversial reforms to the welfare system. On Tuesday, Education Secretary Bridget Phillipson said the Government's child poverty taskforce is 'certainly looking' at the policy, adding 'nothing's off the table but this is not straightforward, the costs are high'. The strategy had been due to be published in spring but has now been delayed until autumn in order to be aligned with the Chancellor's budget. – What have other parties said? Pressure has ramped up on the Government after Reform UK leader Nigel Farage said his party believes lifting the two-child benefit cap is 'the right thing to do'. Speaking at a press conference in central London, he said: 'We believe lifting the two-child cap is the right thing to do. Not because we support a benefits culture, but because we believe for lower-paid workers this actually makes having children just a little bit easier for them. 'It's not a silver bullet, it doesn't solve all of those problems. But it helps them.' He said this is 'aimed at British families'. But Conservative leader Kemi Badenoch has insisted the policy remains 'right' and 'fair'. She told Sunday Morning With Trevor Phillips on Sky News: 'Nigel Farage and Keir Starmer are just saying things to people – they're not doing what is right. 'I am saying what is the right thing to do – it may not be popular, but it is absolutely the right thing to do.'

Oswestry food bank seeing 'steady increase' in demand
Oswestry food bank seeing 'steady increase' in demand

BBC News

time26-05-2025

  • General
  • BBC News

Oswestry food bank seeing 'steady increase' in demand

A food bank in Oswestry has said it is spending more than £70,000 a year on buying comes as figures from the Trussell Trust show that nearly 245,000 emergency food parcels were given to families across the West Midlands in the past and Borders Foodbank provides groceries and hygiene products - as well as practical advice and Liz Jermy said she was seeing a "steady increase in families needing to use our food bank." Anti-poverty charity the Trussell Trust, which runs a nationwide network of food banks, has found a 44% increase over the past year in the number of food parcels it's giving the areas of Shropshire run by Shropshire Council, 9,753 parcels were given to families from three Trussell Trust food banks between April 2024 and March April 2017 and March 2018, just 4,737 were handed charity does not have any food banks in the region run by Telford and Wrekin Council. Ms Jermy said in 2024, the food bank spent £72,000 on food."That's just for Oswestry and the surrounding villages," she said she's seen a "big rise" in people needing to use the food bank since the Covid-19 pandemic."It's people who are in work, but just not able to make ends meet." The trust believes it's important to have people working and volunteering at food banks who know what it's like to need their years ago, Malcolm was homeless due to illness causing him to give up working and a marriage ended up being placed in a Travelodge, whilst looking after his ill said he was "very worried" about going to a food bank for the first time, adding that he was "very emotional because I couldn't get food to feed my son." "I walked in to find smiling faces [...] [and] they sent me off with two big bags of food," he said. Once he was back on his feet, Malcolm decided he "wanted to give back."He is now a volunteer and trustee at Oswestry and Borders Food Bank - his role involves welcoming people into the building."If there's a queue I go and talk to them - because I remember how I felt the first time I walked in." Ben, who is employed by the Trussell Trust, has his own experiences of food poverty, and believes rising prices are leaving more families in need of the charity's help."As someone who's lived on Universal Credit, I know it's not enough to afford all of the essentials," he said. "You might be able to afford three out of the five essentials, but you need to find the other two somewhere - that's where food banks plug in the gap." Volunteer and trustee Alison said she is not surprised that the number of families receiving food parcels is rising."Everybody is tightening their belts, and there is an increasing amount of people for whom tightening their belt just isn't enough," she said. When Alison's husband died suddenly, she remembered the "sick feeling" when she realised there was no life insurance to help support the family."These things come out of the blue, and you have no idea [what to do]." Alison added that food banks offer a lot more than just groceries."Financial advice, mental health support, bereavement support - all that kind of things happening alongside the tins of beans." Follow BBC Shropshire on BBC Sounds, Facebook, X and Instagram.

Pembrokeshire MP praises Neyland therapy centre
Pembrokeshire MP praises Neyland therapy centre

Pembrokeshire Herald

time25-05-2025

  • Politics
  • Pembrokeshire Herald

Pembrokeshire MP praises Neyland therapy centre

171,673 emergency parcels distributed across Wales last year A GROWING number of Welsh families are relying on food banks, with new figures showing that nearly 172,000 emergency food parcels were distributed across Wales between April 2024 and March 2025. The data, released today (Friday, May 23) by anti-poverty charity The Trussell Trust, shows the scale of food poverty in the UK – with 2.9 million parcels handed out nationally. Over one million of those were for children. In Wales, food parcel distribution has increased by 26% since 2019/20, a sign that for many communities, hunger is becoming normalised. The figures have sparked renewed calls for government action, with well-known faces including Dame Julie Walters and Lesley Manville urging ministers to address what they describe as a national emergency. Dame Julie said: 'Emergency food distribution is being normalised in the UK. These stats highlight the need for us to come together and play our part in saying this isn't right.' In Pembrokeshire and across rural Wales, campaigners warn that the situation is worsened by isolation, limited services, and higher energy bills – all pushing vulnerable people to crisis point. Actor Lesley Manville, who recently won an Olivier Award, said: 'I'm shocked at the extremely high levels of emergency food parcels being distributed by food banks, especially the sharp rise in children under five needing support. This has to be a wake-up call for the UK government.' In Wales, more than 187,000 parcels were distributed the previous year – a drop in 2024/25, but still far above pre-pandemic levels. Trussell Trust chief executive Emma Revie said this cannot be seen as a success: 'Thousands of families, disabled people, and working households had to access food banks. This should be a massive wake-up call.' Comedian Rosie Jones said that proposed UK Government cuts to disability benefits could make matters worse: 'Slashing the income of someone already struggling to cover life's essentials is cruel and counterproductive.' In Pembrokeshire, food banks such as PATCH in Milford Haven and the Trussell-linked outlets in Haverfordwest and Fishguard have seen sustained high demand. Volunteers warn that without local donations and support, they would struggle to meet needs. TV presenter and Trussell ambassador AJ Odudu added: 'Right now, someone needs an emergency food parcel every 11 seconds. It's never been more vital that we all play our part.' The charity is calling for an urgent re-think on proposed welfare cuts and for the UK Government to take decisive action to reduce hunger and hardship. Campaigners are also urging the public to donate food or money to their local food bank. A postcode search tool showing how many parcels were distributed in each area is available at:

Milford Haven Inner Wheel donates £700 to Megan's Starr Foundation
Milford Haven Inner Wheel donates £700 to Megan's Starr Foundation

Pembrokeshire Herald

time24-05-2025

  • Politics
  • Pembrokeshire Herald

Milford Haven Inner Wheel donates £700 to Megan's Starr Foundation

171,673 emergency parcels distributed across Wales last year A GROWING number of Welsh families are relying on food banks, with new figures showing that nearly 172,000 emergency food parcels were distributed across Wales between April 2024 and March 2025. The data, released today (Friday, May 23) by anti-poverty charity The Trussell Trust, shows the scale of food poverty in the UK – with 2.9 million parcels handed out nationally. Over one million of those were for children. In Wales, food parcel distribution has increased by 26% since 2019/20, a sign that for many communities, hunger is becoming normalised. The figures have sparked renewed calls for government action, with well-known faces including Dame Julie Walters and Lesley Manville urging ministers to address what they describe as a national emergency. Dame Julie said: 'Emergency food distribution is being normalised in the UK. These stats highlight the need for us to come together and play our part in saying this isn't right.' In Pembrokeshire and across rural Wales, campaigners warn that the situation is worsened by isolation, limited services, and higher energy bills – all pushing vulnerable people to crisis point. Actor Lesley Manville, who recently won an Olivier Award, said: 'I'm shocked at the extremely high levels of emergency food parcels being distributed by food banks, especially the sharp rise in children under five needing support. This has to be a wake-up call for the UK government.' In Wales, more than 187,000 parcels were distributed the previous year – a drop in 2024/25, but still far above pre-pandemic levels. Trussell Trust chief executive Emma Revie said this cannot be seen as a success: 'Thousands of families, disabled people, and working households had to access food banks. This should be a massive wake-up call.' Comedian Rosie Jones said that proposed UK Government cuts to disability benefits could make matters worse: 'Slashing the income of someone already struggling to cover life's essentials is cruel and counterproductive.' In Pembrokeshire, food banks such as PATCH in Milford Haven and the Trussell-linked outlets in Haverfordwest and Fishguard have seen sustained high demand. Volunteers warn that without local donations and support, they would struggle to meet needs. TV presenter and Trussell ambassador AJ Odudu added: 'Right now, someone needs an emergency food parcel every 11 seconds. It's never been more vital that we all play our part.' The charity is calling for an urgent re-think on proposed welfare cuts and for the UK Government to take decisive action to reduce hunger and hardship. Campaigners are also urging the public to donate food or money to their local food bank. A postcode search tool showing how many parcels were distributed in each area is available at:

Flagship child poverty policy delayed by Starmer
Flagship child poverty policy delayed by Starmer

The Independent

time24-05-2025

  • 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.

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