Overview
- The Chancellor is expected to confirm the change on 26 November, with briefings indicating the Treasury has shifted from a tapering idea to full abolition.
- Rachel Reeves has said children should not be penalised for family circumstances and warned that unchecked child poverty carries economic costs.
- Multiple outlets estimate the fiscal impact of scrapping the cap at roughly £3–£3.5 billion over the coming years.
- Introduced in 2017, the rule limits Universal Credit and child tax credit to the first two children and is reported to affect more than 1.5 million children.
- Child Poverty Action Group estimates the move would lift about 350,000 children out of poverty and reduce hardship for a further 700,000, with charities, Labour figures and families citing examples such as a Monmouth household potentially £10,000 a year better off.