Chancellor Scraps Two-Child Benefit Limit, Lifting Hundreds of Thousands

URGENT UPDATE: The UK government has just announced the scrapping of the controversial two-child limit on benefits, a significant policy shift that will lift hundreds of thousands of children out of poverty. In a groundbreaking address during the autumn budget, Chancellor Rachel Reeves revealed that this change aims to combat the severe financial strain faced by families across the nation.

The Chancellor stated, “There is one policy that pushes kids into poverty more than any other. It was introduced by the party opposite,” referring to the previous Conservative government. Reeves highlighted that the two-child limit, implemented eight years ago, has adversely affected over 1.6 million children in the UK, denying families additional support for children born after April 2017. Families impacted by this policy have missed out on around £3,500 annually for each child beyond the second.

According to the Child Poverty Action Group (CPAG), it is estimated that 350,000 children will be immediately lifted out of poverty due to this policy reversal, with another 700,000 experiencing reduced poverty levels. This reform is expected to cost the government approximately £3.5 billion annually by the end of the decade, but experts argue that the long-term costs of child poverty could exceed £40 billion by 2027.

Helen Barnard, director of policy at Trussell, emphasized the urgency of this decision: “The cruel two-child limit has driven countless families into hardship, forced to turn to food banks to survive. Today’s announcement will help ensure all our children have the best possible start in life.”

This decision has garnered widespread support from numerous charities and organizations, including Big Issue, which has campaigned against the two-child limit. Founder Lord John Bird stated, “The abolition of the two-child benefit limit will offer relief to thousands of children who have had no choice in inheriting the poverty of their parents.”

Despite this positive step, advocates are calling for further reforms, including the elimination of the benefit cap, which limits support for larger families. Lynn Perry, chief executive of Barnardo’s, described the end of the two-child limit as a “landmark moment” but stressed that “with one in three children growing up in poverty, there is still much more to do.”

The government’s child poverty strategy, initially scheduled for release in spring, is now expected to be published alongside the autumn budget. This strategy will provide crucial insights into future plans to combat child poverty in the UK.

As this situation develops, all eyes will be on the government’s next steps and the impact of this momentous policy change on families across the UK. The urgent question remains: how will this new direction shape the lives of those affected by poverty moving forward?

Stay tuned for more updates on this critical issue that affects families nationwide.