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27m ago

Labour Pressed to Scrap Two‑Child Cap as IFS Underscores Poverty Gains and MPs Urge Gambling Levy

Fresh IFS findings separate poverty reduction from school‑readiness goals, raising pressure to identify funding before the November Budget.

Keir Starmer alongside school children on the day he announced the expansion of free school meals. Image: No 10 Downing Street/ Simon Dawson
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Overview

  • More than 100 Labour MPs urged Chancellor Rachel Reeves to fund abolition of the cap with a targeted levy on online gambling, citing IPPR analysis that such reforms could raise about £3.2bn.
  • The child poverty taskforce set up by Keir Starmer is reported to recommend lifting the cap as its top measure, with conclusions expected ahead of the 26 November Budget after repeated delays.
  • Work and Pensions Secretary Pat McFadden said any change must be fully budgeted and paid for, stressing the government’s commitment to financial stability.
  • The IFS found no statistically significant impact of the cap on five‑year‑old school readiness but said scrapping it would be one of the most effective ways to reduce child poverty at an estimated cost of around £3bn a year.
  • Campaigners argue repeal would immediately lift hundreds of thousands of children out of poverty, while senior Labour figures including Bridget Phillipson and Dame Meg Hillier have publicly pressed for action before party conference.