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UK Taskforce Poised to Urge Lifting Two-Child Benefit Limit Before Budget

Estimated annual cost is about £3bn, with the 2017 rule widely blamed for worsening child poverty.

Overview

  • The Times reported that ministers and officials on the government’s child-poverty taskforce plan to recommend scrapping the limit on Universal Credit and Child Tax Credit support beyond two children.
  • Their advice is expected before the 26 November Autumn Budget, and the Department for Work and Pensions said work is ongoing with no final decisions made.
  • Chancellor Rachel Reeves said she is determined to reduce child poverty and will respond to the taskforce’s report in the Budget.
  • Cost estimates of roughly £3bn a year underpin opposition from figures such as former chancellor Kwasi Kwarteng, while supporters argue repeal is the fastest way to cut child poverty.
  • Personal finance broadcaster Martin Lewis clarified that the two-child limit is separate from universal Child Benefit and from the overall benefits cap, addressing frequent public confusion.