Latest news with #benefitscap
The Independent
a day ago
- Business
- The Independent
Lord Kinnock urges Labour to scrap two-child benefit cap with ‘Robin Hood economics'
Labour must scrap the two-child cap on benefits to lift children out of poverty, the party's former leader Neil Kinnock has said. Rising levels of poverty 'would make Charles Dickens furious', Lord Kinnock said in an interview with the Sunday Mirror, in which he urged ministers to introduce a wealth tax. Lord Kinnock, who led Labour in opposition between 1983 and 1992, is the latest senior party figure to pressure the current government to end the two-child limit on benefits. Former Labour prime minister Gordon Brown recently said ending the two-child limit, as well as the benefit cap, would be among the most effective ways of reducing child poverty. Lord Kinnock acknowledged the government may not be able to scrap the two-child cap 'all at once'. He added: 'But I really want them to move in that direction because the figures are that if that did occur it would mean that about 600,000 kids fewer are in poverty.' Lord Kinnock suggested such a move could be funded by a wealth tax on the 'top 1 per cent'. 'I know it's the economics of Robin Hood, but I don't think there is anything terribly bad about that,' he said. He warned that over the decade and a half the Conservatives were in power child poverty gradually rose. The Labour peer said: 'In 15 years, starting from a position where beneficial change was taking place, we've got to the place that would make Charles Dickens furious. 'It's been allowed to happen because the kids are voiceless and their parents feel powerless. I defy anybody to see a child in need and not want to help.' The two-child limit has been long-criticised by Labour backbenchers as a driver of child poverty. Ministers are expected to set out plans to tackle child poverty at the budget in the autumn.
The Guardian
2 days ago
- Business
- The Guardian
Neil Kinnock calls for government to scrap two-child cap on benefits
Labour must scrap the two-child cap on benefits to lift children out of poverty, the party's former leader Neil Kinnock has urged. Rising levels of poverty 'would make Charles Dickens furious', Lord Kinnock said in an interview with the Sunday Mirror, in which he also called on ministers to introduce a wealth tax. The peer, who led Labour in opposition between 1983 and 1992, is the latest senior party figure to pressure the government to end the two-child limit on benefits, which was introduced by the Conservatives in 2017. The former Labour prime minister Gordon Brown recently said ending the two-child limit, as well as the benefit cap, would be among the most effective ways of reducing child poverty. Lord Kinnock acknowledged the government may not be able to scrap the two-child cap 'all at once'. He added: 'But I really want them to move in that direction because the figures are that if that did occur it would mean that about 600,000 kids fewer are in poverty.' Lord Kinnock suggested such a move could be funded by a wealth tax on the 'top 1%', adding: 'I know it's the economics of Robin Hood, but I don't think there is anything terribly bad about that.' He warned that over the decade and a half the Conservatives were in power, child poverty gradually rose. The Labour peer continued: 'In 15 years, starting from a position where beneficial change was taking place, we've got to the place that would make Charles Dickens furious. 'It's been allowed to happen because the kids are voiceless and their parents feel powerless. I defy anybody to see a child in need and not want to help.' Last month, government data showed a further 37,000 children were affected by the two-child benefit limit in the year to April, with nearly 1.7 million now living in households affected by the policy. A government spokesperson said at the time: 'Through our plan for change, we are reforming the broken social security system to help those who can work into good, well-paid jobs, which is the best way to improve living standards for families … The child poverty taskforce will publish an ambitious strategy later this year to ensure we deliver fully funded measures that tackle the structural and root causes of child poverty across the country.'
The Sun
10-07-2025
- Business
- The Sun
470,000 households have Universal Credit payments cut due to controversial rule
HUNDREDS of thousands of households have had their Universal Credit payments capped due to a controversial rule. New data from the Department for Work and Pensions (DWP) shows that 469,780 households were impacted by the two-child cap in April 2025, marking a 3% increase compared to the previous year. 1 The policy, which denies additional child-related benefits for third or subsequent children born after April 2017, now impacts 1.67million children. It means parents can't claim the child elements of Universal Credit worth up to £3,513.72 per year for third or subsequent children. While 453,600 households receive no child element for at least one child, 26,300 households were granted exceptions, mostly for multiple births. Critics argue the policy deepens child poverty, with the Child Poverty Action Group (CPAG) revealing it has pushed 350,000 children into poverty and 700,000 into even worse conditions. Lynn Perry, chief executive of Barnardo's, also said: "Ending the policy would lift half a million children out of poverty." Labour leader Sir Keir Starmer previously stated his government couldn't afford to remove the cap, which the Institute for Fiscal Studies estimates would cost £3.4 billion annually. Ministers have toed the party line for months, but the narrative started to shift in May, with Sir Keir reported to have asked the Treasury to see how scrapping it could be funded. Labour MPs who pushed Sir Keir Starmer to reverse major PIP cuts last week had hoped to scrap the benefit cap next. However, plans to shelve the rule have been binned because of Labour's £5billion welfare U-turn. The DWP has been contacted for comment. All the freebies you can get on Universal Credit 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 What additional childcare help is available? Up to 30 free childcare hours You may be able to get free childcare for your child aged nine months to four years old if you live in England. The number of hours working parents can claim depends on the age of their child. If your child is: Nine months to two years old, you can get 15 hours per week of free childcare Three to four years old, you can get 30 hours per week of free childcare From September 2025, children aged nine months to two years old will qualify for 30 hours per week of free childcare To qualify, you'll need to earn at least the equivalent of the national minimum wage for 16 hours a week. Both parents will need to earn the equivalent of at least £166 per week, each with a taxable income of no more than £100,000. Your two-year-old can also get free childcare if you live in England and get any of the following benefits: Income support income-based jobseeker's allowance (JSA) income-related employment and support allowance (ESA) Universal Credit and your household income is £15,400 a year or less after tax, not including benefit payments The guaranteed element of pension credit Child tax credit, working tax credit (or both), and your household income is £16,190 a year or less before tax Universal Credit childcare costs Parents on Universal Credit and in a paid job can have up to 85% of their childcare costs covered, up to £1,031.88 a month for one child and £1,768.94 a month for two or more children. It doesn't matter how many hours you work. If you live with a partner, you both need to work to qualify. You usually have to pay for the childcare and claim back the costs, but if you go back to work or increase your hours you can request for the money to be paid upfront. Child benefit You can get child benefit if you're responsible for a child aged under 16, or if they are under 20 and in approved education or training. Child benefit is currently worth £26.05 a week for the eldest child or only child. For each subsequent child, parents get £17.25 a week. The cash is paid every four weeks and there's no limit to how many children you can apply for. Bear in mind though, that those who earn more than £60,000 a year have to start paying back some of their child benefit through the High Income Child Benefit Charge (HICBC). If you or your partner earns £80,000 or more, you have to pay all your entitlement back. You have to pay the HICBC to HMRC through self-assessment. How to claim Child Benefit CHILD benefit is worth up to £1,358.32 a year for your first or only child and up to £899.47 a year for additional children. This works out at £104.20 every four weeks or £26.05 a week for your first child and £69 every 4 weeks or £17.25 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 via 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 also 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.
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.'
