Labour Considers Overhauling Two-Child Benefit Rule

Labour is contemplating eliminating the contentious two-child benefit restriction and introducing a new gradual system. Chancellor Rachel Reeves is exploring various options to replace the austerity policy linked to child poverty. Government officials emphasized that no final decision has been made, as the child poverty taskforce led by Keir Starmer is finalizing its recommendations. The current two-child benefit limit, which confines benefits to the first two children in a family under Child Tax Credits and Universal Credit, may be substituted with a new sliding scale approach, offering higher benefits for the first child and reduced amounts for subsequent children. The Treasury is also evaluating the possibility of easing the two-child benefit limit by extending benefits to families with three or four children. Child poverty charities have been urging the removal of this policy implemented by George Osborne to uplift hundreds of thousands of children out of poverty. Prime Minister, in response to questions about the two-child benefit limit, expressed commitment to reducing child poverty through initiatives like free breakfast clubs and expanded eligibility for free school meals. While questioned about scrapping the two-child benefit cap, Rachel Reeves refrained from confirming any specific plans but indicated that policies to tackle child poverty would be outlined in the upcoming Budget. Lord John Bird commended the potential changes but stressed the need for more drastic measures to eradicate child poverty entirely. Amnesty International UK’s Jen Clark criticized the two-child benefit cap as a harsh component of the benefit system, calling for its complete removal to address the poverty crisis effectively.