Latest news with #twoChildCap
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 .
Daily Mail
5 days ago
- Business
- Daily Mail
EXCLUSIVE Nigel Farage is 'sticking two fingers up to hardworking British families' by calling for the two-child benefit cap to be scrapped - and he sounds like Jeremy Corbyn, say Tories
Nigel Farage has been accused of 'sticking two fingers up to hardworking British families' by calling for the two-child benefit cap to be scrapped. The Reform UK leader used a speech on Tuesday to commit his party to axing the welfare restriction, claiming it was 'the right thing to do'. Mr Farage also vowed to fully reverse the winter fuel payment cuts made by Labour, repeated Reform's pledge to raise the tax-free income allowance to £20,000, and outlined plans for a transferable marriage tax allowance. But he is being criticised for 'fantasy economics' after he stuggled to defend his plans for a spending splurge of up to £85billion. In an article for MailOnline, which can be read below, senior Tory MP Helen Whately claimed Mr Farage's agenda 'sounded like it was handwritten by Jeremy Corbyn '. 'He exposed himself as a populist, to the Left of Labour, cosy with the unions and economically illiterate,' the shadow work and pensions secretary writes. 'It's not just on the numbers, which by his own admission even he doesn't think add up, but on his values too. 'He thinks taxpayers should pick up the bill for people on benefits to have an unlimited number of children. That simply isn't fair or economically credible.' The two-child benefit cap 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. Prime Minister Sir Keir Starmer has not ruled out lifting the cap after coming under increasing pressure by Labour MPs to do so. But Tory leader Kemi Badenoch, speaking at the weekend, said the limit is 'fair' and said Britons 'shouldn't have to rely on benefits to have your children'. She added that taxpayers would think 'if you can't afford to have lots of children, then you shouldn't do so'. Ms Whately claimed, by vowing to scrap the two-child benefit cap, Mr Farage had 'stuck two fingers up to hardworking British families who live within their means'. She added: 'People who work hard, get on with their job and provide for themselves should be supported by effective public services from a smaller state. 'But not according to Farage, who would ensure more and more of working peoples' pay packets are taken away from them to pay for those on benefits. That is not right.' The Tory frontbencher said Mr Farage was 'telling people what he thinks they want to hear with no regard for reality' as he attempts to woo Labour voters to win power. In his speech on Tuesday, Mr Farage said Reform was built around three key principles of 'family, community and country'. 'That is why we believe lifting the two-child cap is the right thing to do,' he said. '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.' Nigel Farage's mask has slipped: His agenda could have been written by Jeremy Corbyn By Helen Whately, Tory MP and shadow work and pensions secretary Nigel Farage's mask has slipped. He exposed himself as a populist, to the Left of Labour, cosy with the unions and economically illiterate. His agenda sounded like it was handwritten by Jeremy Corbyn. It's not just on the numbers, which by his own admission even he doesn't think add up, but on his values too. He thinks taxpayers should pick up the bill for people on benefits to have an unlimited number of children. That simply isn't fair or economically credible. In doing so, he stuck two fingers up to hardworking British families who live within their means. People who work hard, get on with their job and provide for themselves should be supported by effective public services from a smaller state. But not according to Farage, who would ensure more and more of working peoples' pay packets are taken away from them to pay for those on benefits. That is not right. It was like Left-wing extremists, many of whom have been banished even from the Labour Party, were using Farage as a sock puppet. It was big government, high tax and high spend with no regard for the consequences. In other words: fantasy economics. One of the biggest challenges facing our country is the spiralling welfare budget. Labour are waking up to this but don't have a plan. Reform don't even get it. Their only suggestion so far is to increase the benefits bill by lifting the two child cap. What we need is a principled approach properly thought through. More people in work. Fewer people claiming who don't need to. That requires hard thinking and tough choices and the only party capable and committed to doing that at the moment is the Conservatives. We need our leaders to tell it how it is, not just tell people what they want to hear so they can get in – Keir Starmer's already tried that one. Using our values and principles to guide us through the complex challenges facing the country - not the kind of client state populism that has drained the vitality from some European economies. In Parliament, we have had our shoulders to the wheel, forcing the Prime Minister to see sense. But Farage isn't interested in that. Last week for example, rather than hold Labour to account during the Brexit surrender summit, the Chagos Islands surrender, the Winter Fuel u-turn, Farage was nowhere to be seen –preferring the sun loungers to the green benches. It says it all. Conservatives have strong values of sound money and a clear vision of supporting people into work. That is the opposite of what Nigel Farage is promising, who is just telling people what he thinks they want to hear with no regard for reality. Voters heard the same thing from Labour last year and have been paying for it ever since with higher taxes, higher inflation and reams of red tape choking private enterprise. We will continue to do the hard yards, and expose these mad plans for what they are.
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.'
Yahoo
24-05-2025
- Business
- Yahoo
PM could lift controversial benefit cap in budget - as Farage makes two big election promises
Sir Keir Starmer could decide to lift the two-child benefit cap in the autumn budget, amid further pressure from Nigel Farage to appeal to traditional Labour voters. The Reform leader will use a speech this week to commit his party to scrapping the two-child cap, as well as reinstating winter fuel payments in full. The prime minister - who took Westminster by surprise at PMQs by revealing his intention to row back on the winter fuel cut - has previously said he would like to lift the two-child cap if the government could afford it. There are now mounting suggestions an easing of the controversial benefit restriction may be unveiled when the chancellor delivers the budget later this year. According to The Observer, Sir Keir told cabinet ministers he wanted to axe the measure - and asked the Treasury to look for ways to fund the move. It comes after the government delayed the release of its child poverty strategy, which is expected to recommend the divisive cap - introduced by former Tory chancellor George Osborne - is scrapped. Ministers have already said any changes to winter fuel payments, triggered by mounting political pressure, would only be made when the government's next fiscal event rolls round. The Financial Times reported it may be done by restoring the benefit to all pensioners, with the cash needed being clawed back from the wealthy through the tax system. The payment was taken from more than 10 million pensioners this winter after it became means-tested, and its unpopularity was a big factor in Labour's battering at recent elections. Before Wednesday's PMQs, the prime minister and chancellor had insisted there would be no U-turn. More from Sky News: Many Labour MPs have called for the government to do more to help the poorest in society, amid mounting concern over the impact of wider benefit reforms. Former prime minister Gordon Brown this week told Sky News the two-child cap was "pretty discriminatory" and could be scrapped by raising money through a tax on the gambling industry. Mr Farage, who believes Reform UK can win the next election, will this week accuse Sir Keir of being "out of touch with working people". In a speech first reported by The Sunday Telegraph, he is expected to say: "It's going to be these very same working people that will vote Reform at the next election and kick Labour out of government."
