Ministers have been accused of turning their backs on Britain’s poorest families after ruling out scrapping the two-child benefit cap — despite chilling warnings that child poverty could reach a new high. In private briefings, senior figures have made clear that the cap will stay in place, even as charities warn that keeping it will plunge hundreds of thousands more children into poverty.
One government source told the Guardian: “The cap is popular with key voters, who see it as a matter of fairness.” But child poverty campaigners, Labour MPs and frontline charities say the decision is a betrayal — and risks condemning a generation of children to a life of hardship. In a powerful letter to Labour leader Keir Starmer, leading organisations including Barnardo’s, Save the Children and Citizens Advice said removing the two-child limit is the most effective and affordable way to tackle child poverty.
The Child Poverty Action Group says 4.5 million children are already living in poverty. Without urgent action, that will rise to 4.8 million by 2029. Labour MPs have welcomed plans to expand breakfast clubs and free childcare — but warn these efforts won’t come close to reversing the damage done by the benefit cap.
The two-child limit, introduced by the Tories in 2017, means parents cannot claim child tax credit or universal credit for a third or subsequent child born after April that year — unless under exceptional circumstances. Many families have described the policy as cruel and punishing, especially during a cost-of-living crisis where foodbanks are being used in record numbers and parents are skipping meals to feed their kids.
Labour insiders say options are being explored to ease the impact — such as exemptions for working families or those with disabled children — but ministers are shying away from the full £3.6bn price tag of scrapping the policy entirely. Some have floated a “three-child limit” as a compromise — but campaigners say that still leaves too many families behind.
Meanwhile, ministers are pressing ahead with plans to launch 750 new breakfast clubs in England this week, offering free childcare for half an hour before school. They say this could save families £450 a year, with the expansion of free childcare from September potentially saving up to £7,500.
The clubs are being billed as a way to help struggling families, improve education, and tackle hunger — with 67,000 of the 180,000 children expected to benefit coming from the most deprived parts of the country. But for many families, these small savings won’t make up for the deep financial hole caused by the two-child cap.
In their letter to Sir Keir, campaigners wrote: “Scrapping the two-child limit is by far the most cost-effective way to reduce child poverty. It would lift 350,000 children out of poverty overnight and result in 700,000 children living in less deep poverty. If it is not scrapped, the stark reality is that child poverty will be significantly higher at the end of this parliament than when the government took office, making this the first time a Labour government would leave such a legacy.”
At Reach and across our entities we and our partners use information collected through cookies and other identifiers from your device to improve experience on our site, analyse how it is used and to show personalised advertising. You can opt out of the sale or sharing of your data, at any time clicking the “Do Not Sell or Share my Data” button at the bottom of the webpage. Please note that your preferences are browser specific. Use of our website and any of our services represents your acceptance of the use of cookies and consent to the practices described in our Privacy Notice and Cookie Notice.