UPDATE: In a groundbreaking move, UK Chancellor Rachel Reeves has just announced the scrapping of the controversial two-child limit on benefits in her autumn budget, a decision set to lift 350,000 children out of poverty immediately. This significant policy shift aims to address the urgent issue of child poverty, which affects millions across the nation.
The two-child limit, introduced by the Conservative government eight years ago, has restricted families from receiving additional universal credit for any third child or subsequent children born after April 2017. This policy has impacted over 1.6 million children in the UK, forcing many families into financial hardship and reliance on food banks.
Reeves stated, “There is one policy that pushes kids into poverty more than any other. It was introduced by the party opposite… Even on its own terms, it failed.” She emphasized that this change will provide immediate relief to families struggling under the weight of the cost of living crisis.
According to the Child Poverty Action Group (CPAG), the removal of the two-child cap will not only lift hundreds of thousands of children out of poverty but will also alleviate the severity of poverty for an additional 700,000 children. Families previously affected by the cap have been missing out on around £3,500 per year per child, exacerbating their financial struggles.
The announcement has been met with overwhelming support from various organizations, including the Big Issue, which has been advocating against the two-child limit. Founder Lord John Bird remarked, “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 the positive implications of this policy change, the Chancellor’s decision comes with a financial cost of around £3.5 billion annually by the end of the decade, as estimated by the Resolution Foundation. However, experts argue that the long-term costs of child poverty could far outweigh this expenditure, potentially reaching £40 billion by 2027 due to increased unemployment and public service demands.
Charities are now urging the government to accompany this decision with further reforms, including the removal of the existing benefit cap, which disproportionately affects larger families. Lynn Perry, Chief Executive of Barnardo’s, called the end of the two-child limit a “landmark moment,” but stressed the necessity for broader reforms to truly tackle child poverty.
As the government prepares to unveil its comprehensive child poverty strategy, originally set for spring but delayed to autumn, advocates are calling for measurable targets to ensure accountability in the fight against child poverty. Helen Barnard, Director of Policy at Trussell, stated, “Today’s announcement of its full and swift removal will help ensure all our children have the best possible start in life.”
The urgency surrounding this issue underscores the ongoing struggles faced by families across the UK. As this policy begins to take effect, all eyes will be on the government’s next steps and additional measures to safeguard the future of the nation’s children.
The conversation continues as families and advocates share their experiences with the two-child limit and discuss the broader implications of this urgent reform. The government’s commitment to eradicating child poverty is now more crucial than ever, with the hope that this policy change will pave the way for a brighter future for countless children in the UK.
