Overview

• Government sources say the Chancellor plans Budget action on the cap affecting roughly 1.7 million children, with a tapered replacement under active discussion and details not yet finalised.
• Education Secretary Bridget Phillipson said lifting the restriction is “definitely on the table,” framing it as part of a push to cut child poverty.
• The Child Poverty Taskforce is preparing to recommend removing the limit after judging it one of the most effective levers to reduce hardship.
• Alternatives under review include tapering payments by child, extending support only up to a third or fourth child, or limiting changes to working universal credit claimants.
• Independent estimates put full repeal at about £3–£3.5bn annually, and some MPs have proposed funding it with a targeted levy on harmful online gambling backed by IPPR and Gordon Brown.