Latest news with #benefitcap
BBC News
13 hours ago
- Business
- BBC News
North-East charity says two-child benefit cap 'punishes' families
A charity has said the two-child benefit cap is "punishing" poorer children, as new figures on child poverty rates in the UK were by Loughborough University suggested 31% of children in north-east England were in relative poverty - in line with the UK average - but that rose to 52% in Middlesbrough and Thornaby East and 43% in Newcastle Central and North East Child Poverty Commission said government pledges to deliver ambitious plans to reduce child poverty must be be turned into real Department of Work and Pensions, which has been contacted for comment, is expected to announce its decision on the cap in autumn. The two-child cap prevents most families claiming means-tested benefits for any third or additional children born after April working on the study, commissioned by the End Child Poverty coalition, found child poverty rates across the UK were "directly and strongly correlated" with the percentage of children affected by the two-child limit in that local Loughborough study concluded: "While the benefit cap can affect all out-of-work households, the two-child limit specifically targets larger families."It is widely acknowledged that many households are living below the poverty line as a direct consequence of the policy, a high proportion of whom are already in work, with limited scope to increase their incomes."Research by Child Poverty Action Group indicates that removing the policy would lift 350,000 children out of poverty, while reducing the depth of poverty for a further 700,000 children, at a cost of £2 billion." 'Causing damage' The research findings were localised based on parliamentary constituencies, with a number of North East areas, including Easington and Bishop Auckland, showing 33% of children in relative Elliott, from Children North East, said these families were being "punished" by cap."We see the terrible, limiting impact of this every single day on the children and families we work with across the region," she Tracey Herrington from Thrive Teesside said: "Year on year, we bear witness to the rising numbers of children being pulled into poverty through no fault of their own."Policies – like the two-child limit – that are actively causing damage, hardship and even destitution."Last week, Education Secretary Bridget Phillipson said the government was looking into scrapping the cap, but warned it would "cost a lot of money".It comes after the the government's child poverty strategy, which had been due for publication in the spring, was delayed. Follow BBC North East on X, Facebook, Nextdoor and Instagram.
Daily Mail
3 days ago
- Business
- Daily Mail
Thousands of Britain's biggest jobless families in line for taxpayer-funded windfalls if Labour or Reform go through with plans to lift two-child benefit cap
Thousands of Britain's biggest jobless families could receive huge windfalls from the taxpayer under plans to scrap the two-child benefit cap. Labour and Reform are both pushing to ditch the policy brought in by the Tories in 2017 despite the £3.5billion cost it would incur. Critics of the cap claim it has worsened child poverty. But analysis of official figures shows that ditching it would hand thousands of pounds a year in extra benefits to 180,000 large families in which no one goes out to work. Former work and pensions secretary Esther McVey last night said the figures underlined the case for keeping the cap in place. 'Encouraging people to have children that they cannot afford themselves, and expecting others to pick up the tab for them, is financially and morally indefensible,' she said. 'I expect nothing better from Labour, but it is a mistake for Nigel Farage to chase Labour to the Left.' Ms McVey said it was 'bizarre' for Reform to want to 'expand the welfare state in this way' after voting against lifting the cap in a ballot on the King's Speech last summer. She said the Tories were now the only party 'standing up for taxpayers and for common sense in this matter', echoing comments made by party leader Kemi Badenoch in this newspaper yesterday. The benefit cap limits means-tested benefits like universal credit and child tax credit payments to the first two children, costing families a typical £3,455 in lost benefits for each additional child. The Institute for Fiscal Studies has estimated the two-child cap costs affected families an average of £4,300 each. Figures, produced by the Department for Work and Pensions (DWP), show that more than 450,000 families were affected by the cap last year. Around three-fifths (280,000) had three children, while a quarter (120,000) had four children and 56,000 had five or more. The DWP does not provide a breakdown of payments to the biggest families. But separate figures held by HM Revenue and Customs show that child benefit, which is not subject to the cap, was paid to more than 16,000 families with six children, more than 5,000 with seven children and even to 15 families with 13 children or more. Of the 450,000 families affected in total, around three-fifths include at least one adult who is in some form of work. This leaves around 180,000 where no one in the household is in any kind of paid work. The figures will fuel the growing political debate over whether to soften the impact of the cap or ditch it altogether. They come a day after Mrs Badenoch accused Labour and Reform of engaging in a 'race to the bottom' over welfare. The Tory leader said it was wrong to ask taxpayers, 'many of whom are struggling to raise their own children or choosing not to have them in the first place, to fund unlimited child support for others'. She added: 'Welfare traps people, builds dependency and it drives up costs for everyone.' Opinion polls show consistent public support for the cap. But the Conservatives are now the only major party defending the policy. Dozens of Labour MPs are pushing for the cap to be scrapped as part of a review into tackling child poverty, which has now been delayed until the autumn. One minister told the Mail there was a 'widespread feeling at all levels of the party that it is wrong to be penalising children in this way'. Sir Keir Starmer, who is facing a wider Labour revolt on welfare, confirmed this week that the Government is looking at 'all options' to tackle child poverty, including ending the cap. Other, cheaper options being considered by ministers include raising the cap to the first three children or removing it for all children until the age of five. Gordon Brown is urging Chancellor Rachel Reeves to consider new taxes on gambling and the banks to fund the removal of the 'cruel' cap. Mr Farage raised eyebrows this week when he announced that a Reform-led government would ditch the cap completely. The Reform leader – who is targeting disaffected Labour voters – said his party backed the move 'not because we support a benefits culture' but in order to help families struggling to make ends meet. The cap applies to third and additional children born after April 2017 when the policy was introduced. As a result, the number of affected families is increasing every year. The Institute for Fiscal Studies said it was eventually likely to affect 800,000 families.
The Sun
5 days ago
- Business
- The Sun
Fresh hint two-child benefit cap WILL be scrapped as Starmer paves way for ANOTHER U-turn amid Labour rebellion
SIR Keir Starmer yesterday hinted he's ready to heed the demands of Labour rebels and scrap the two-child benefit cap. The PM gave his strongest indication yet that he will remove the threshold that limits handouts for a third kid. 1 Laying the groundwork for a U-turn on his election claim the cap won't be abandoned, Sir Keir said he was 'determined to drive down child poverty'. Visiting a glass manufacturing plant in Warrington, on three occasions he wouldn't rule out a change in policy. Amid growing pressure from furious backbench MPs, Sir Keir insisted ministers were 'looking at all options' around tackling poverty among kids. He said: 'One of the proudest things that the last Labour government did was to drive down child poverty. 'I think there are a number of components — there isn't a single bullet — but I'm absolutely determined that we will drive this down and that's why we'll look at all options, all ways of driving down child poverty. 'I'm so proud the last Labour government did it and I'm so pleased that we are taking up that challenge to do it with this Labour government and that's what we will do.' How to claim Child Benefit Read below if you would like more information on how to claim child benefit. Child benefit is worth up to £1,331 a year for your first or only child and up to £881 a year for additional children. This works out at £102.40 every four weeks or £25.60 a week for your first child and £67.80 every 4 weeks or £16.95 a week for their siblings. There is no limit on the number of children that can be claimed for. Applying is straightforward and can be done in minutes at or through the HMRC app. Parents with a newborn baby should make a claim online as soon as possible and could then receive their first payment in as little as three days. You can also backdate claims for up to three months. Parents can make a claim and then choose to opt out of receiving Child Benefit payments can still receive National Insurance credits if one parent is not working. National Insurance credits build up your entitlement to the state pension. It comes as Shadow Chancellor Mel Stride this week warned Sir Keir has 'no mandate' for scrapping the two-child benefit cap. The top Tory blasted the PM for preparing to splurge billions on ditching another of his election pledges in sop to Labour lefties. In the build up to July's ballot, Sir Keir declared he wouldn't abandon the cap, and didn't include any policy around abolition in his party manifesto. Furious Mr Stride said: 'He promised he wouldn't do it, but now it looks as though he's going to break that promise and spend billions more. 'Reversing the cap isn't just irresponsible, it's unfair. " Labour's desperate U-turns show they can't be trusted with your money." Chancellor Rachel Reeves is under huge pressure from Labour figures - including Gordon Brown - to lift the 2 child benefit cap, which limits the full benefits parents can get to two children. Sir Keir is looking at lifting the cap after a revolt from his MPs - but it would cost around £3 billion a year. With Treasury coffers running low, No11 is expected to have to raise taxes to pay for the benefit. Last week Education Secretary Bridget Phillipson confirmed that abolishing the cap is "on the table". Asked whether ministers are planning to abolish the cap, Ms Phillipson told Times Radio: "It's on the table. "No measures are off the table." The Education Secretary added: "We've always been clear about that and of course social security is an important element of how we tackle child poverty. "It's not the only area. Childcare plays an important role, skills, how we ensure that more people are able to get back into work. "There are lots of ways that the Child Poverty Task Force is considering how we can lift children out of poverty. "But of course we can't ignore the impact of social security changes, social security changes that were introduced by the Conservatives that a Labour government would not have introduced in the first place. "But it's tough, it's challenging." Who's exempt from the two-child benefit cap? The two-child benefit cap means that you can only get more child tax credit or Universal Credit for your third (or more) child if: They were born before April 6, 2017 They are disabled (disabled child element only) You qualify for an exception in child tax credit or special circumstances apply in Universal Credit You qualify for an exception or special circumstances for each third (or subsequent) child if: You have adopted them or other children in your household You receive guardian's allowance for them or other children in your household They are the second (or more) child born in a multiple-birth They or other children in your household are the offspring of one of your children who is under 16 years old They or other children in your household are not your child or stepchild, and you look after them under a court order They or other children in your household are not your child or stepchild and you look after them under an arrangement with Social Services (except for formal foster care) They were conceived as a result of rape, and you do not live with the perpetrator
The Independent
5 days ago
- Business
- The Independent
Starmer hints at scrapping two-child benefit cap to tackle poverty
Sir Keir Starmer has left the door open to scrapping the two-child benefit cap amid mounting pressure from backbench Labour MPs and Nigel Farage's Reform UK. MPs from across Labour have repeatedly urged the prime minister to scrap or ease the limit - first imposed by austerity architect George Osborne in 2015 - amid growing concern over the direction of the party. Days after Mr Farage said a Reform government would get rid of it entirely, Sir Keir said he is looking at 'all options' to lift children out of poverty. It came just days after education secretary Bridget Phillipson said getting rid of the two-child limit was 'on the table' as part of Labour's delayed child poverty strategy, now expected to be published in the autumn. 'It's certainly something that we're considering', she said. 'We've always been clear that social security measures are an important part of what the child poverty task force is looking at.' Speaking to workers at a glass equipment factory in St Helen's, as part of a press conference aimed at tackling the rise of Reform, Sir Keir said: 'One of the proudest things that the last Labour government did was to drive down child poverty, and that's why we've got a task force working on this. "I think there are a number of components. There isn't a single bullet, but I'm absolutely determined that we will drive this down, and that's why we'll look at all options, always, of driving down child poverty." Mr Farage on Tuesday said he would get rid of the two-child cap as part of a drive to make having children easier and increase Britain's declining birth rate. Speaking to The Independent after Sir Keir's press conference, a senior Labour MP said the prime minister 'is going to have to' get rid of the cap due to the growing anger on the backbenches. The prime minister is privately said to be in favour of doing away with the cap – a policy that restricts parents from claiming certain benefits for more than two of their children. Critics of the policy say removing it would be the most effective way of reducing child poverty amid warnings that as many as 100 children are pulled into poverty every day by the limit. However, it is thought the cap won't be lifted until the government publishes its child poverty strategy, which has now been delayed until the autumn. There is growing pressure on Labour to scrap it, as well as to water down its upcoming welfare cuts, as polling last week showed that almost half of all red wall voters disapprove of the way the government has acted on benefits. A survey conducted by Merlin Strategy across 42 red wall seats - those historically held by Labour - 48 per cent of people had a negative view of the government's handling of benefits policies, while just 25 per cent approved. Of those who said they voted Labour at the 2024 election, people were divided, with 38 per cent approving and 38 per cent disapproving. Talk of a U-turn on the cap comes just days after the prime minister - in an attempt to win back disillusioned voters and appease his MPs - announced plans to row back on last year's controversial decision to means test the winter fuel payment. He told the Commons he would look at increasing the thresholds at which people start to receive the benefit. The prime minister is also facing a rebellion from MPs over the government's controversial welfare cuts, which will see personal independence payments (PIP) cut for 800,000 people with disabilities.
BBC News
6 days ago
- Business
- BBC News
First Minister Eluned Morgan calls for two-child benefit cap to end
Wales' first minister has called on Prime Minister Keir Starmer to scrap the two-child benefit Morgan said her government was "really worried about child poverty" and described the policy, which came into force in 2017, as "damaging".She added it "prevents most families from claiming means-tested benefits for any third or additional children born after April of that year".It comes after the UK government's education minister, Bridget Phillipson, said on Tuesday that this policy had driven many families into poverty and "nothing is off the table" as they look at scrapping it. Speaking to BBC Wales at the Urdd Eisteddfod on Wednesday, Morgan said her government was "really worried about child poverty".The first minister met with Sir Keir last week in London, following disagreements between the pair and Morgan calling on the PM to "cough up for Wales".The UK government is expected to announce its decision on the cap in autumn, when it publishes its child poverty strategy."Today we've issued a statement to call on the UK government to get rid of the two child benefit cap," said Morgan."We think it is damaging for lots of families in Wales." Chancellor Rachel Reeves's spending review, which sets out the UK government's financial priorities between now and the next general election, is due to conclude next why now is the time to scrap the child benefit cap policy, Morgan said it was "not a new ask" from the Welsh government, but a case of "putting it up in neon lights", adding: "Now is the time that the decisions are being made in relation to the spending review."There are a lot of other competing issues. I want rail money for Wales as well."I get that the Chancellor has some tough decisions to make. But Labour needs to be the party that's concerned about child poverty, and we are."Morgan said she had "a really good relationship" with Sir Keir and she could "speak very frankly" with him."But there's an understanding that I'm running a government here in Wales, and he's running a government," she added."Sometimes, our priorities are slightly different. I have to speak up for Wales and that's what I do."This spending review is key, it's critical, but not all of the decisions, not all of the things we want, will be determined in the spending review."We may have to wait until the budget in the autumn to get some of the other things we were calling for."
