The Labour Party has vowed to scrap the contentious two-child benefit cap, a policy critics say has plunged thousands of families into poverty. Shadow Work and Pensions Secretary Liz Kendall confirmed the move, calling the current system "cruel and unfair."
Introduced in 2017, the policy restricts child tax credits and Universal Credit to the first two children in most households. Research shows this has affected over 1.5 million children, with 250,000 pushed into poverty as a result.
The Human Cost
Charities have long argued the cap disproportionately impacts larger families and single-parent households. "We've seen parents skipping meals to feed their children," said a spokesperson for Child Poverty Action Group. "This policy was always morally bankrupt."
Economic Implications
While the Treasury claims the cap saves £1 billion annually, economists argue the long-term costs of child poverty - including health and education impacts - far outweigh these savings. Labour's proposal would form part of a broader anti-poverty strategy expected to be unveiled ahead of the next election.
Political Reactions
The Conservative Party defends the policy as "fair to taxpayers," while Liberal Democrats and SNP MPs have welcomed Labour's pledge. With poverty rates rising, the debate over welfare reform looks set to dominate political discourse in coming months.
