Keir Starmer has strongly indicated that the two-child benefit limit may be removed in the upcoming Budget announcement.
The Prime Minister expressed his personal commitment to reducing child poverty rates, currently affecting around 4.5 million children. He assured that a set of strategies will be revealed to address this critical issue during the long-awaited Budget presentation on November 26.
This development follows Rachel Reeves signaling the possible elimination of the two-child benefit limit, a policy that restricts Universal Credit to the first two children in a family. Starmer emphasized his determination to decrease child poverty levels, drawing on the success of the previous Labour government in tackling this issue.
The government, under Starmer’s leadership, has been evaluating the policy introduced by the Conservatives in 2017 as part of a comprehensive child poverty review. Reports suggest that there might be adjustments to the policy, possibly moving towards a three-child benefit limit to lessen its impact.
Reeves indicated her support for the complete abolition of the two-child benefit limit, aligning with former Labour Prime Minister Gordon Brown’s stance. She argued against penalizing children in larger families and pledged to reduce the number of children living in poverty.
The Chancellor highlighted the economic costs of unchecked child poverty, emphasizing the importance of supporting families in challenging circumstances. She emphasized that children should not suffer due to their parents’ financial struggles, regardless of the reasons behind family size changes.
Overall, there is a growing consensus within the government to take significant action to address child poverty, with the Treasury signaling a strong commitment to this cause.