Chancellor Rachel Reeves is poised to deliver a landmark Budget this Wednesday, with Labour MPs anticipating the full abolition of the controversial two-child benefit limit introduced during the Tory austerity era.
A Policy Set for Removal
Cabinet Minister Heidi Alexander has strongly indicated the policy's demise, stating that tackling child poverty is in the Labour Party's DNA. She emphasised the severe, lifelong consequences for children growing up in poverty, including poorer educational outcomes and reduced employment prospects later in life.
The two-child limit, established by the Conservative government in 2017, restricts child tax credits and Universal Credit to the first two children in a family. Experts have consistently argued that this policy has been instrumental in trapping children in poverty.
The Human and Economic Cost
While Ms Alexander refrained from confirming the policy's scrapping ahead of the official Budget announcement, she gave a clear hint, stating the government's focus is on ensuring that children's chances in life aren't determined by the size of their parent's bank balance.
This follows a strong signal from Chancellor Rachel Reeves herself, who previously stated it was not right that a child is penalised because they are in a bigger family, through no fault of their own. The move is expected to cost the Treasury around £3 billion.
Internal documents on child poverty, prepared for ministers and seen by The Mirror, lay bare the stark reality. They reveal that children born into the third poorest families earn roughly 50% less at the age of 40 than those from the richest third. The papers also warn that children with lower educational levels are five times more likely to be poor as adults.
Broader Government Strategy
The Green Party leader, Zack Polanski, welcomed the expected move, though he expressed frustration at the time taken, calling it absolutely outrageous but stating he would celebrate the victory.
A government spokesman reiterated their commitment, saying: Every child, no matter their background, deserves the best start in life. They pointed to the government's wider anti-poverty measures, which include:
- The rollout of Best Start Family Hubs with a £500 million investment.
- An extension of free school meals.
- A new £1 billion crisis support package to prevent the poorest from going hungry during school holidays.
The official Child Poverty Taskforce is also set to publish an ambitious strategy to tackle the root causes of child poverty, recognising that failure to do so is damaging for both the individuals affected and the wider UK economy.
