Overview

• Liz Kendall, Work and Pensions Secretary, confirmed that the Labour Government will not abolish the two-child benefit cap, despite acknowledging its link to increasing child poverty.
• Research shows the cap has affected over 1.6 million children, with an additional 30,000 pushed into poverty since Labour assumed power in 2024.
• The Labour Government plans to release a child poverty strategy later in 2025, but details on its funding and scope remain unclear.
• Advocacy groups, including the Child Poverty Action Group, argue that scrapping the cap is the most cost-effective way to reduce child poverty, potentially lifting 540,000 children out of absolute poverty at an annual cost of £2.5 billion.
• Labour's recent welfare reforms, including cuts to disability benefits, are projected to push another 50,000 children into poverty, further exacerbating the crisis.