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Labour Poised to Scrap Two-Child Benefit Cap at Budget

Ministers have signalled a reversal to tackle child poverty with a reported £3 billion price tag.

Overview

  • Transport Secretary Heidi Alexander hinted on BBC that lifting the cap is under consideration as part of efforts to reduce child poverty.
  • Reports ahead of Wednesday’s Budget say the 2017 limit on support for more than two children in Universal Credit and child tax credits will be abolished.
  • Chancellor Rachel Reeves previously indicated the policy was unfair, with the expected change estimated to cost about £3 billion.
  • Charities say the cap drives hardship, affecting roughly 1.7 million households and one in nine children across the UK.
  • A government spokesman highlighted a wider package from the Child Poverty Taskforce, including £500 million for family hubs and a £1 billion crisis support fund.