Latest news with #childPoverty
The Sun
3 days ago
- Business
- The Sun
Full list of benefits not affected by two-child rule – as government mulls axing cap
PARENTS could still claim thousands of pounds in support despite the two-child benefit cap — as ministers come under pressure to scrap it. Here is everything you need to know. 1 WHAT IS THE TWO CHILD CAP? The rule, which limits child-related payments in Universal Credit and tax credits to just two children per household, doesn't apply to all benefits. It means families with three or more kids may still be missing out on cash they're eligible for. Prime Minister Sir Keir Starmer yesterday refused to rule out scrapping the rule, which currently limits benefit payments to two children per household for Universal Credit and tax credits. It means that families can miss out on up to £3,455 a year for a third or later child born after April 2017. The policy, introduced in a bid to keep welfare spending in check, has faced criticism from some MPs and campaigners. But scrapping the cap could cost the Treasury around £3billion annually, and would likely require new tax rises or spending cuts elsewhere to fund. Visiting a factory in Warrington, the PM said he was 'determined to drive down child poverty' but stopped short of making a firm commitment. Asked repeatedly whether the rule would go, Sir Keir said ministers were "looking at all options". While the cap still applies to some benefits, others remain unaffected – and families may still be eligible for support depending on their circumstances. Here's the full breakdown. Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence CHILD BENEFIT This universal benefit is paid for every child, regardless of how many you have. £25.60 a week for the first child £16.95 a week for each additional child If you are claiming child benefit for a child under 12, you also receive National Insurance (NI) credits. Child Benefit also comes with National Insurance credits, which count towards your State Pension. Note: If you or your partner earn over £60,000, you may be liable for the High Income Child Benefit Charge, which can reduce or eliminate the payment. How do I claim child benefits? 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. DISABILITY LIVING ALLOWANCE (DLA) DLA is available for children under 16 who have disabilities and require extra care or mobility support. It's not affected by the two-child cap, and is worth £28.70 to £184.30 a week, depending on the level of need. Once a child turns 16, they must apply for Personal Independence Payment (PIP) instead. PERSONAL INDEPENDENCE PAYMENT (PIP) PIP is for people aged 16 to 64 with a long-term health condition or disability. It is not subject to the cap, and multiple eligible individuals can claim within the same household. The benefit is worth up to £184.30 a week for those entitled to both the daily living and mobility components. GUARDIAN'S ALLOWANCE This benefit is for individuals raising a child whose parents have died. Paid at £21.75 a week per child Paid in addition to Child Benefit Unaffected by the two-child limit You must be claiming Child Benefit and meet the qualifying criteria around guardianship. ADOPTION ALLOWANCE Paid by local authorities, this benefit supports adoptive families who may face extra costs related to a child's care needs. There's no cap on how many adopted children can qualify, and payments vary depending on your financial circumstances and the child's needs. LOCAL WELFARE SCHEMES These include support such as: Discretionary Housing Payments The Household Support Fund Free school meals These schemes are not restricted by the two-child cap, but eligibility and availability vary by council. UNIVERSAL CREDIT EXEMPTIONS While the child element of UC is capped, exceptions do exist, including: 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 As the government continues to review the policy, no final decision has been made — but for now, these benefits remain available outside the cap. To check if you're eligible, visit or speak to an independent benefits advisor. 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 Sun
6 days ago
- Business
- The Sun
Sir Keir Starmer has ‘no mandate' to scrap two-child benefit cap, warns Shadow Chancellor Mel Stride
SIR Keir Starmer has 'no mandate' for scrapping the two-child benefit cap, Shadow Chancellor Mel Stride warned yesterday. The top Tory blasted the PM for preparing to splurge billions on ditching another of his election pledges in sop to Labour lefties. 3 3 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." It came as Education Secretary Bridget Philipson yesterday said scrapping the cap, which would cost £3.6bn a year, is an option 'on the table' for the Treasury. Asked whether ministers are planning to abolish the cap, she 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. "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.' 3
The Independent
6 days ago
- 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.'
The Independent
6 days ago
- Politics
- The Independent
Ministers ‘considering' scrapping two-child benefit cap after Farage vows to axe it
The education secretary has given the strongest signal yet that the government will scrap the two-child benefit cap, saying that lifting it is 'certainly something we are considering'. It comes ahead of a major speech from Nigel Farage on Tuesday, where he will commit to scrapping the benefit cap and reinstating the winter fuel payment in full in an attempt to position his party as the true opposition to Labour. The Reform UK leader is also expected to accuse the government of lacking the will to bring net migration down to zero, and claim Sir Keir's deal with the EU 'betrays the very essence of Brexit'. But hitting back at Reform's plans, Bridget Phillipson dubbed the party 'just not serious', claiming Mr Farage would 'dismantle the NHS as we know it' and 'massively undermine our ability to deliver free breakfast clubs' by reinstating tax breaks for private schools. Asked whether she thinks the government should lift the two-child benefit cap, Ms Phillipson said: 'It's not off the table. It's certainly something that we're considering. We've always been clear that social security measures are an important part of what the child poverty task force is looking at.' She told Sky News that tackling child poverty is 'personal' to her, insisting it is the 'moral purpose' of this government. 'It's personal to me, because for part of my childhood, I experienced what too many children right now in our country are experiencing, and I know the damage it does', she said. 'I know the scar it has, not just for those individual children and families, but, actually, for all of us. 'We're all poorer as a country when we aren't able to benefit from the amazing talent of so many children and families. That's why we're serious about tackling child poverty.' Sir Keir Starmer is privately said to be in favour of doing away with the two-child benefit 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 fresh polling showed that almost half of all red wall voters disapprove of the way the government has acted on benefits. A new poll 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. Meanwhile, within his own party, the prime minister is facing a rebellion from MPs over controversial welfare cuts, which will see personal independence payments (PIP) cut for 800,000 people with disabilities, and a growing unease over the direction of the party. Last week, in an attempt to win back disillusioned voters and appease his MPs, the prime minister announced plans to row back on last year's controversial decision to means test the winter fuel payment, telling the Commons he would look at increasing the thresholds at which people start to receive the benefit. Today's speech, framed as Mr Farage's 'pitch to working people' will see the Reform leader flanked by council leaders, mayors and Runcorn MP Sarah Pochin. A party source said Mr Farage will challenge Sir Keir 'to go to a working man's club in the north of England with him and see who connects better with working people'. But asked about his proposals, the education secretary hit back: "It's just not serious. They're just not serious people. It's not credible. 'This is a party, after all, that doesn't believe in the NHS, that would dismantle the NHS as we know it, that has consistently opposed the measures that Labour has brought in to back workers through the Employment Rights bill, making sure, for example, that more workers can have access to sick pay. 'Those are the kinds of decisions that are that reform are interested in making. 'The one policy that they have in education is to reintroduce tax breaks to private schools, which would massively undermine our ability to deliver free breakfast clubs - the kinds of measures that working families are benefiting from right now. 'That's Reform. That's who they are. They're not on the side of working people. They're not serious about how they deliver change. And every time they get the opportunity to back working people, for example, with better rights at work, they oppose it." Mr Farage has previously called for an end to the NHS being funded through taxes, but has been unable to say how it would be paid for instead. While he has insisted that he wants the health service to remain 'free at the point of delivery', he added that Reform is looking into 'how we get there'.
The Guardian
6 days ago
- Politics
- The Guardian
Minister gives strongest sign yet Labour could end two-child benefit limit
The Labour government's 'moral purpose' is for fewer children to grow up in poverty, the education secretary has said, in the strongest hint yet that ministers intend to end the two-child benefit limit. Bridget Phillipson said to those charities that have been campaigning for an end to the restriction: 'We hear them … We want to make this change happen, and it will be the moral mission of this Labour government to ensure that fewer children grow up in poverty.' She said the government had to pay heed to the cost of ending the policy, estimated at about £3.5bn, and that the final decision would be reached as part of the child poverty taskforce she co-chairs. 'It's why I'm in politics. It's what this Labour government is all about. We will make different decisions to support children and families,' she said. 'That is the moral purpose of this Labor government. We are determined to bring down the numbers of children growing up in poverty. I know myself the impact it has. I've experienced it myself growing up. So it's really personal to me.' Phillipson said the government was already taking significant steps via an expansion of funded childcare, cheaper school uniforms and breakfast clubs, and she said allowing parents to work more hours was crucial to alleviating poverty. Charities have said the two-child benefit limit is one of the key drivers of child poverty. Recent research has suggested about 100 children are pulled into poverty every day by the limit, meaning up to 20,000 could be affected by a six-month delay. Phillipson said it remained part of their considerations. 'I've always been clear that it's on the table,' she said. 'The price tag associated with this is big. But what I would also say, where it comes to the price tag, the cost of inaction is also incredibly high, because this scars the life chances of children in our country. 'That's devastating for those children and families, but actually, for all of us as a society, we miss out on the tremendous contribution and talent of so many people.' Asked why ministers would not take action faster, Phillipson told BBC Radio 4's Today programme: 'They are not changes that a Labour government would ever have introduced. But seeking to unwind that and to change the social security system is not easy, and it costs a lot of money, and we've got to get this right.' Her comments come on the day the Reform UK leader, Nigel Farage, is expected to back ending the two-child benefit limit. But the Conservatives have attacked Labour and Reform for considering the change, which is not broadly backed by the wider public in polls, saying people should take responsibility for the numbers of children they have. Phillipson said that was an unfair critique in many cases. 'I've had conversations with people I represent, with constituents who made perfectly reasonable and rational decisions to have a number of children, to have three children, say, and something terrible happens in their lives. 'In the case of one constituent I met, they lost their partner who died unexpectedly, they then find themselves unable to access the full support that they had anticipated for their whole family, even when they made what was a perfectly reasonable choice around family size.' Phillipson said the changes to the rules 'actually haven't had an impact on the decisions that people are making around family size, all it has done has pushed more children into poverty.' But she said ending the limit was 'not the only way that we can make change happen. It's crucial that we consider it … there are lots of ways we can do this, but the commitment that I will give to you … is that this Labour government is determined to ensure that fewer children grow up in poverty, and we will do what is necessary to make that a reality.'
