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Reeves Signals Move on Two-Child Benefit Cap Ahead of Budget

Her BBC remarks raised expectations of a November 26 announcement.

Overview

  • Speaking on BBC Radio 5 Live, the chancellor said a child should not be penalised for being in a bigger family and pledged action on child poverty.
  • The policy limits Universal Credit and child tax credit to support for the first two children born after April 2017 and does not apply to Child Benefit.
  • Reports indicate a change could be unveiled in the Budget on November 26, though no formal decision has been published.
  • The Resolution Foundation estimates extending support to three children would cost about £2.4 billion in 2029/30 and lift 280,000 children out of poverty, with full abolition put at roughly £3–3.5 billion by 2029/30.
  • Charities welcome scrapping the limit, while Conservative leaders criticise the idea and say they would reinstate the policy if it is removed.