Charities Urge Government to Scrap Two-Child Benefit Cap to Combat Rising Child Poverty

Charities have written to the prime minister, arguing that abolishing the two-child benefit cap is the most effective way to reduce child poverty. They warn that failing to remove the cap could lead to the highest levels of child poverty since records began by the end of the current parliamentary term.

The two-child benefit cap, introduced by a previous chancellor, prevents parents from claiming benefits for any third or subsequent child born after April 2017. Additionally, a separate limit on overall household benefits, implemented in 2013, restricts the total amount a household can receive.

These charities are increasing pressure on the government to eliminate the two-child restriction as part of its upcoming child poverty plan. The plan is expected to be published this spring, although some believe it may be delayed until June.

The letter urges the prime minister to prioritize reducing child poverty. It emphasizes that scrapping the two-child limit is the most cost-effective solution, potentially lifting 350,000 children out of poverty immediately and improving the situation for an additional 700,000 children. The letter warns that if the cap remains, child poverty will be significantly higher at the end of this parliament than when the government took office, reaching its highest level since records began.

The Child Poverty Action Group, a signatory of the letter, estimates that the number of children in poverty could rise from 4.5 million to 4.8 million by 2029 without immediate action. A Labour MP has urged the government to heed the warnings from charities and prioritize keeping children out of poverty.

While the two-child benefit cap applies across the UK, the Scottish government has committed to mitigating its effects for residents, although payments are not expected to begin until 2026. The prime minister has previously expressed a desire to scrap the cap but has cited financial constraints, emphasizing the importance of economic growth.

Recent reports indicate that Labour MPs are opposing the government's planned benefit cuts, despite efforts to offer spending on child poverty as a compromise. Ministers are planning to publish Labour's child poverty strategy shortly before a crucial vote in an attempt to minimize the scale of the rebellion. The strategy is expected to include additional financial support for low-income parents of young children.

The renewed calls to scrap the two-child benefit cap follow a recent report suggesting that increasing the limit to three children could significantly reduce child poverty. A government spokesperson stated that the government is exploring all available options to support children and families, including job creation, wage increases, benefit adjustments, and support for low-income households.