Ministers have been cautioned that completely eliminating the two-child limit is crucial in the effort to decrease alarming child poverty rates before the upcoming election.
According to the Resolution Foundation, child poverty levels are projected to surge to a record 34%, affecting approximately 4.8 million children by the end of the decade unless immediate measures are taken.
This development coincides with discussions by Keir Starmer and Chancellor Rachel Reeves regarding the potential elimination or alteration of the long-standing Tory policy as part of an imminent review on child poverty. The policy currently limits Child Tax Credits and Universal Credit to the first two children in a family, a practice criticized by charities for ensnaring children in poverty.
However, the Resolution Foundation has cautioned that only a complete repeal of the limit will lead to a reduction in child poverty, emphasizing that alternative measures, such as transitioning to a three-child limit or reducing benefits for third and subsequent children, would still result in elevated child poverty rates by the end of the decade.
The report’s authors affirm that “eliminating the limit entirely is the only solution to reduce child poverty” and argue that there are no practical obstacles to abolishing the policy immediately following the Chancellor’s upcoming Budget announcement.
Alex Clegg from the Resolution Foundation stated, “Failure to take action in this parliamentary term will result in a new record high in child poverty, with over one-third of children facing poverty by 2029-30. The most effective approach to alleviate child poverty is to completely remove the two-child benefit limit.”
“Partial repeal options that have been proposed in recent months would not be sufficient to prevent an increase in child poverty during this parliamentary period.”
A government spokesperson emphasized, “Every child, regardless of their background, deserves a strong start in life. To address the fundamental causes of child poverty, our child poverty taskforce will present an ambitious strategy.
“We are committed to investing £500 million in children’s development through the expansion of Best Start Family Hubs, extending free school meals, and ensuring that the most disadvantaged do not go hungry during school holidays through a new £1 billion crisis support initiative.”
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