UPDATE: In a groundbreaking move, UK Chancellor Rachel Reeves has announced the immediate removal of the controversial two-child limit on benefits during her autumn budget presentation today. This pivotal decision is set to lift approximately 350,000 children out of poverty, a critical step as the nation grapples with a deepening cost of living crisis.
The two-child limit, introduced by the previous Conservative government eight years ago, has significantly impacted over 1.6 million children across the UK, denying families additional universal credit for any third child born after April 2017. Families affected have lost out on around £3,500 annually for each child beyond the second.
In her statement, Reeves emphasized that the policy has failed its intended purpose of reducing costs and behavior modification, stating, “There is one policy that pushes kids into poverty more than any other. It was introduced by the party opposite.” She added, “What it has done is push hundreds of thousands of children into poverty.”
According to the Child Poverty Action Group (CPAG), scrapping this limit will not only alleviate immediate financial strain but could also help 700,000 children escape deeper poverty. The resolution is expected to cost an estimated £3.5 billion annually by the end of the decade, but experts argue that the long-term costs of child poverty could reach £40 billion by 2027 due to increased unemployment and higher public service expenditures.
Helen Barnard, director of policy at Trussell, stated, “The cruel two-child limit has driven countless families into hardship.” She called today’s announcement a crucial step toward ensuring that all children have the best possible start in life.
The Big Issue, an organization advocating for poverty alleviation, expressed strong support for the decision. 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.”
However, the fight against child poverty is far from over. Charities, including Barnardo’s, are urging the government to go further by lifting the benefit cap that also severely impacts larger families. Barnardo’s chief executive Lynn Perry labeled the end of the two-child limit a “landmark moment,” but stressed the ongoing necessity for more robust actions.
With the government’s child poverty strategy expected to be published soon, advocates are calling for clear, measurable targets to track progress and ensure accountability. Lord Bird emphasized, “We must see a truly bold child poverty strategy… The government must not dodge this vital layer of scrutiny.”
As this urgent development unfolds, families across the UK are poised to feel the immediate effects. The future looks brighter for many children who will no longer bear the burden of a policy that has long been criticized as detrimental to the most vulnerable in society.
Stay tuned for more updates on this developing story and its impact across the country.
