Ministers have received a warning that completely removing the two-child limit is crucial to decreasing child poverty rates significantly before the upcoming election. According to the Resolution Foundation, urgent action is needed to prevent child poverty rates from reaching a record high of 34%, affecting approximately 4.8 million children by the end of the decade.
There is ongoing consideration by Keir Starmer and Chancellor Rachel Reeves to either eliminate or soften the Tory-era policy that restricts Child Tax Credits and Universal Credit to the first two children in a family. Charities have criticized this policy for contributing to the entrapment of children in poverty.
The Resolution Foundation emphasized that only a complete repeal of the limit would be effective in reducing child poverty, stating that even transitioning to a three-child limit or reducing benefits for third and subsequent children would not suffice. They urged for immediate action following the Chancellor’s upcoming Budget to scrap the policy.
Alex Clegg from the Resolution Foundation stated that failing to act during this parliamentary term would lead to a surge in child poverty, with over one in three children at risk of growing up in poverty by 2029-2030. The most impactful solution to lift children out of poverty, he argued, is the full removal of the two-child limit on benefits.
Responding to the concerns, a government spokesperson highlighted the commitment to providing every child with a fair start in life. They mentioned the forthcoming publication of an ambitious strategy by the child poverty taskforce to address the underlying causes of child poverty. Additionally, the government is investing in children’s development through initiatives like Best Start Family Hubs, extending free school meals, and ensuring support for the most vulnerable during holidays with a new crisis support package of £1 billion.
