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44m ago

Reeves Poised to Lift Two-Child Benefit Cap in November Budget

With costs estimated at roughly £3bn a year, officials are drafting tapered or targeted versions as they work up a paid-for plan.

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Prime Minister Keir Starmer visits Downs Primary School earlier this year (Photo: Isabel Infantes - WPA Pool/Getty Images)
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Overview

  • Multiple outlets report that the Chancellor intends to act in the Budget, with government sources saying any move must lift the cap rather than offer vague intent.
  • Education Secretary Bridget Phillipson said lifting the limit is "definitely on the table" and pledged progress on reducing child poverty.
  • Designs under consideration include a taper that reduces payments for each additional child, expanding support only up to three or four children, or applying changes to working parents on universal credit.
  • The Child Poverty Taskforce is expected to recommend lifting the limit as one of the most effective measures to cut poverty, though ministers have not announced a final decision.
  • Estimates put full abolition at £3.0–£3.5bn a year with 1.6–1.7 million children affected; Rachel Reeves and Keir Starmer say funding details will come at the Budget as Conservatives question affordability and some MPs tout a gambling levy.