US EditionRachel Reeves to scrap two-child cap on benefits payments, the Guardian reports
Removing the two-child benefit cap could lift 500,000 children out of poverty but may cost up to £3.5 billion annually, according to the Resolution Foundation.
- On November 26, Rachel Reeves, Britain's Finance Minister, plans to scrap the two-child limit in the upcoming state budget, government sources say action is expected then.
- Pressure from Labour MPs and campaigners intensified as more than 100 Labour MPs urged Reeves and the Child Poverty Taskforce recommended scrapping the two-child limit.
- The cap affects 1.7 million children and removing the two-child cap would cost between �3.4 billion and �3.5 billion, according to the Institute for Fiscal Studies and Resolution Foundation.
- Advocates say lifting the cap would immediately lift 350,000 children out of poverty and 700,000 from deep poverty, and Rachel Reeves with Prime Minister Keir Starmer will set out details at the November Budget.
- With fiscal pressures, ministers flagged tough choices as officials warn the move could force wider welfare reform or tax rises, marking a reversal since the Labour government after July 2024.
24 Articles
24 Articles
Martin Lewis' MSE warns 200,000 families lose out over child benefit mistake
An estimated 200,000 couples have fallen foul of the error (Picture: Getty) Amid speculation Labour Chancellor Rachel Reeves plans to axe the two-child benefit cap in the upcoming November Budget, many UK families could soon get a welcome income boost. But according to Money Saving Expert (MSE) those with three or more kids aren’t the only ones who miss out — and it’s all down to a simple error in your child benefit application. In the latest ed…
Labour to lift two-child benefit cap in November budget
The Labour government is set to lift the two-child benefit cap, which is pushing thousands of children into poverty, in the November budget. It comes amid growing pressure from MPs, party members and child poverty campaigners to lift the cap. Earlier last month, it was reported that the Child Poverty Taskforce, set up after the election to tackle child poverty in the country, had concluded that lifting the two-child benefit cap is the “best way”…
Evening Standard
Chancellor Rachel Reeves looks set to lift two-child benefit limit
Campaigners argue that 109 children across the UK are pulled into poverty by the policy every day.
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