Overview
- Keir Starmer and Rachel Reeves have signalled the cap will be removed in the 26 November statement, with reports saying ministers now favour full abolition over a taper.
- Government estimates put the policy’s cost at roughly £3–£3.5 billion per year.
- Introduced in 2017, the cap restricts child tax credit and universal credit to the first two children and currently affects more than 1.5 million children.
- Child Poverty Action Group estimates repeal would lift around 350,000 children out of poverty and reduce deeper poverty for a further 700,000.
- Public pressure from charities and celebrities has intensified, and a profiled family of seven could be about £10,000 a year better off if the cap ends.