Over 100 groups call for Labour to fully scrap two child benefit cap: ‘Do the right thing’
More than a hundred organizations have called on Labor to scrap the two-child allowance limit altogether, with ministers reportedly considering tweaking the controversial policy rather than scrapping it entirely.
In a letter to Sir Keir Starmer and Rachel Reeves, groups including the Child Poverty Action Group (CPAG), Citizens Advice and the British Medical Association (BMA) say “this is not the time for half-measures” in response to the reports.
“Now is the time for the prime minister and chancellor to hear the voices of the UK’s children and use this vital opportunity to do the right thing,” they said in a joint letter.
“Full removal of the two-child limit will move the lives of millions of children to a brighter future and help rebuild a stronger, fairer country and economy.”
The two-child benefit cap prevents parents from claiming universal credit or tax credit for their third child. It was introduced by the Conservatives and came into force in April 2017. Only valid for children born after April 6, 2017.
Ahead of the Budget on November 26, Labor is reportedly considering scrapping the two-child benefit limit after pressure from backbenchers, campaign groups and political opponents.
Latest official figures show 1.6 million children live in families affected by the policy. Campaigners said 109 children across the UK were pushed into poverty every day by the policy, and scrapping it would lift more than 600,000 children out of that level.
The number of children living in poor households has been increasing steadily over the past decade; 4.5 million children (about one-third) currently live in poverty.
On Tuesday, Ms Reeves gave her strongest hint yet that the government could scrap the controversial policy, saying it was not right for children to be “punished” for being part of extended families.
Speaking on BBC 5Live, the chancellor said it was important not to allow “the cost to our economy of allowing child poverty to go unchecked”. He added: “After all, a child shouldn’t be punished just because their parents don’t have a lot of money.”
His comments were later echoed by Sir Keir, who said the government would take “a range of measures” to “reduce child poverty”.
The Treasury is understood to be currently considering ways to tweak the impact of the policy rather than removing the cap entirely. This could be done, for example, by increasing the limit to three or four children, or by introducing a reduction rate so that parents receive higher rights for their first child and fewer rights for subsequent children.
An announcement on the measure is expected to be published in the next budget or before the end of the year as part of Labour’s deferred child poverty strategy.
But signatories, including Save the Children UK, Barnardo’s and the TUC, warn that every day the cap remains in “any form” it will continue to push children into poverty. Their intervention echoes comments last week by former prime minister Gordon Brown, who called for the policy to be “abolished altogether”.
CPAG chief executive Alison Garnham said: “The Government wants to reduce child poverty but its efforts will be stalled until the two-child limit is removed completely. This is a one-off chance to make the huge difference needed for children. This policy needs to be removed from the Budget before more children’s life chances are restricted.”
A Government spokesman said: “Every child deserves the best start in life, whatever their background.
“That is why our Child Poverty Working Group will publish an ambitious strategy to tackle the structural and root causes of child poverty.
“We’re investing £500 million in children’s development with the launch of Best Start Family Centres, expanding free school meals and ensuring the poorest don’t go hungry over the holidays through a new £1 billion crisis support package.”
