Overview
- Rachel Reeves declined to confirm a decision at Labour conference, saying policies will be set out in the 26 November Budget and must be fully funded.
- Designs under review include tapering payments for additional children, extending support only to three or four children, or lifting the cap solely for working Universal Credit claimants.
- The policy currently affects about 1.665 million children in roughly 469,780 Universal Credit households, with DWP figures indicating most affected households are in work.
- Independent estimates put the cost of full repeal at around £3–£3.5bn a year, while support for the first three children is estimated at £2.4bn in 2029/30 and could lift 280,000 children out of poverty.
- Officials have flagged large windfalls for very big families under full abolition, with disclosed figures showing some six‑plus‑child households gaining many thousands, as charities press for complete removal to cut child poverty.