Ministers have been cautioned that completely abolishing the two-child limit is crucial in the effort to decrease alarming child poverty rates before the upcoming election.
A report by the Resolution Foundation predicts that child poverty rates could soar to a record 34%, affecting approximately 4.8 million children by the end of the decade if immediate action is not taken.
This development coincides with discussions by Keir Starmer and Chancellor Rachel Reeves on potentially scrapping or modifying the existing two-child limit policy, which restricts benefits like Child Tax Credits and Universal Credit to the first two children in a family. Critics argue that this policy has led to increased child poverty rates.
However, the Resolution Foundation cautions that partial measures, such as shifting to a three-child limit or reducing benefits for third and subsequent children, would still result in elevated levels of child poverty in the coming years.
The foundation’s report emphasizes the necessity of fully repealing the limit to effectively combat child poverty. It suggests that there is no practical reason for delaying the policy’s removal immediately following the next month’s Budget announcement.
According to Alex Clegg of the Resolution Foundation, failure to take action in this parliamentary term could lead to a significant rise in child poverty rates, with over a third of children potentially living in poverty by 2029-30. Clegg asserts that eliminating the two-child limit on benefits is the most effective solution to lift children out of poverty.
A government spokesperson stated that every child, regardless of background, deserves a promising start in life. The government’s child poverty taskforce is set to unveil a robust strategy aimed at addressing the fundamental causes of child poverty.
The government is investing £500 million in children’s development through initiatives like the Best Start Family Hubs program, expanding free school meals, and implementing a new £1 billion crisis support package to ensure that the most vulnerable children do not go hungry during school holidays.
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