Ministers have been cautioned that completely abolishing the two-child limit is crucial to curbing alarming child poverty rates before the upcoming election. The Resolution Foundation has projected that without immediate action, child poverty rates could soar to a record high of 34%, affecting approximately 4.8 million children by the end of the decade.
Currently, Keir Starmer and Chancellor Rachel Reeves are contemplating either scrapping or amending the Tory-era policy as part of an impending review on child poverty. This policy currently restricts Child Tax Credits and Universal Credit to only the first two children in a family, a measure criticized by charities for perpetuating child poverty.
The Resolution Foundation has emphasized that implementing partial solutions, like transitioning to a three-child limit or reducing benefits for third and subsequent children, would still result in elevated child poverty rates by the decade’s end. The foundation insists that only a complete repeal of the limit would effectively reduce child poverty.
Alex Clegg of the Resolution Foundation stated that if the Government fails to take action during this parliamentary term, child poverty could hit an unprecedented level, with over a third of children living in poverty by 2029-30. He stressed that the most impactful way to alleviate child poverty is to eliminate the two-child limit on benefits entirely.
Responding to the concerns, a government spokesperson highlighted the commitment to providing every child, regardless of background, with a strong foundation. The government’s child poverty taskforce is set to release a comprehensive strategy targeting the underlying causes of child poverty. Initiatives include a £500 million investment in children’s development through the introduction of Best Start Family Hubs, expansion of free school meals, and ensuring disadvantaged children have access to support during holiday periods through a £1 billion crisis relief program.