Ministers have been cautioned that fully eliminating the two-child limit is crucial in the effort to reduce alarming child poverty rates before the upcoming election. The Resolution Foundation has issued a warning, stating that without immediate action, child poverty rates are projected to reach a record high of 34%, affecting approximately 4.8 million children by the end of the decade.
The potential removal or adjustment of the Tory-era policy, which restricts benefits like Child Tax Credits and Universal Credit to the first two children in a family, is being considered by Keir Starmer and Chancellor Rachel Reeves as part of an impending child poverty review. Charities have criticized this policy for contributing to the entrapment of children in poverty.
The Resolution Foundation has emphasized that only a complete repeal of the two-child limit will effectively reduce child poverty. The Foundation’s report notes that partial measures such as transitioning to a three-child limit or reducing benefits for third and subsequent children would still result in higher child poverty rates by the end of the decade.
Alex Clegg from the Resolution Foundation highlighted the urgency, stating that if no action is taken in this Parliamentary term, child poverty is expected to hit a new peak, affecting over one-third of children by 2029-30. Clegg stressed that fully scrapping the two-child limit on benefits is the most effective way to lift children out of poverty, dismissing any partial repeal options as insufficient to prevent an increase in child poverty.
In response, a government spokesperson emphasized the commitment to providing every child with equal opportunities, mentioning the forthcoming publication of a comprehensive strategy by the child poverty taskforce to address the underlying causes of child poverty. The government has allocated £500 million towards children’s development through initiatives like the Best Start Family Hubs, extending free school meals, and ensuring support for the most vulnerable during holiday periods with a new £1 billion crisis package.