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Labour Ministers Face Calls to End Two-Child Benefit Cap Ahead of October Budget

Any removal of the cap will be decided by Chancellor Rachel Reeves in her October Budget, despite senior Labour figures urging its repeal to alleviate child poverty.

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Overview

  • Stephen Kinnock said that, as things stand, lifting the two-child cap is not government policy and that details will be left to the Chancellor.
  • Lord Neil Kinnock argued that repealing the cap could reduce child poverty by about 600,000 and suggested funding it through a wealth tax on the richest.
  • Official parliamentary figures show 71,580 families with five or more children on Universal Credit would each gain at least £18,122.88 annually if the cap were removed.
  • Think-tank and Treasury analyses estimate abolishing the cap would cost roughly £3.5 billion a year and lift around half a million children out of poverty.
  • Ministers say the final decision will be made by Chancellor Rachel Reeves in her October Budget, with various funding proposals still under review.