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Report Says Only Full Repeal of Two-Child Benefit Cap Will Reduce Child Poverty

Reeves weighs costly options before the 26 November Budget under tight fiscal limits.

Overview

  • The Resolution Foundation concludes that only abolishing the 2017 two-child limit in full would lower child poverty, estimating 330,000 children lifted out of poverty now and a further 150,000 prevented from falling into poverty by 2029–30 at a cost of about £3.5bn a year.
  • Without action, the think tank projects child poverty rising to roughly 34%—about 4.8 million children—by the end of the decade despite recent targeted measures.
  • The Treasury is assessing choices including full repeal, raising the limit to three children, new exemptions, or tapered payments, but no decision has been taken ahead of the Budget.
  • Six Labour MPs who were previously suspended over the issue have written to the Chancellor urging full abolition, saying the policy cannot be justified by a Labour government.
  • New Survation polling shows voters more evenly split on scrapping the cap, as the government prepares a child poverty strategy and points to investments such as Best Start Family Hubs and a £1bn crisis support package.