In a landmark announcement during her first Budget, Chancellor Rachel Reeves has confirmed the abolition of the controversial two-child benefit limit, a policy long criticised for trapping children in poverty.
Budget Cheers for Poverty-Lifting Move
The moment was met with loud cheers from Labour MPs as the Chancellor declared the policy, introduced by former Conservative Chancellor George Osborne in 2017, would be scrapped. The two-child limit restricts child tax credits and universal credit to the first two children in a family.
Ms Reeves stated that this significant change would also see the end of what she termed the "vile" rape clause. This was an exemption to the limit that allowed women to claim benefits for a third child under specific, often traumatic, circumstances.
Massive Impact on Child Poverty Figures
The financial and social implications of this decision are profound. According to the Institute for Fiscal Studies (IFS), scrapping the policy is projected to lift approximately 630,000 children out of poverty in the long term.
The move represents a major victory for campaigners within and outside the Labour Party. Former Prime Minister Gordon Brown, who has previously described child poverty as a "scar on the soul of our nation", was among the long-standing advocates for this change.
The issue had caused significant internal divisions for Labour in the run-up to the general election, even leading to seven Labour MPs having the whip removed last summer over their stance on the policy and other matters.
What Comes Next?
The government has also committed to publishing a long-promised child poverty strategy in the coming days, signalling a continued focus on tackling this key issue.
This decisive action marks a clear shift in welfare policy from the previous government and is set to have a direct and positive impact on the lives of hundreds of thousands of families across the United Kingdom.
