DWP households set for £14,000 bonus in funds bonanza as one sort of family qualifies
Families on Department for Work and Pensions (DWP) benefits are set to see a massive increase in payments with larger households in line for a £14,000 payment bump
The budget will see larger families on Department for Work and Pensions (DWP) benefits being paid tens of thousands of pounds more each year.
Rachel Reeves’ flagship plan to scrap the two-child benefit cap will see 18,000 low-income families with six or more children be paid an additional £14,000 per year.
The two-child benefit cap limits welfare payments such as universal credit and child tax credit payments to a family’s first two children. DWP figures show 470,000 families are currently affected by the policy.
Scrapping the policy is expected to cost £3.5billion per year. It comes as chaos reigned when Reeves’ budget was leaked just before she was set to deliver it.
The Chancellor was seen being handed a phone moments after the ‘leak’ as she was about to make her speech.
The Office for Budget Responsibility (OBR) has seemingly released its economic and fiscal document before Reeves’s announcement at 12:30pm.
This included the two-child benefit cap being removed at an estimated cost of £3 billion by 2029-30, according to the Office for Budget Responsibility.
The OBR has now apologised and launched an investigation after its economic and fiscal outlook document was published early in a “technical error”.
They said in a statement: “A link to our economic and fiscal outlook document went live on our website too early this morning. It has been removed.
“We apologise for this technical error and have initiated an investigation into how this happened.
“We will be reporting to our oversight board, the Treasury, and the Commons Treasury Committee on how this happened, and we will make sure this does not happen again.
“Our economic and fiscal outlook and supporting documents will be released when the Chancellor has finished her speech.”
The OBR documents also showed it has increased its forecast for economic growth this year from 1% to 1.5% but downgraded its forecasts for the following four years.
Reeves’ Budget will see the existing freezes to personal tax thresholds extended for another three years until 2030-31.
The Chancellor is also expected to retain the 5p cut in fuel duty until September 2026, when it will be reversed through a staggered approach, according to documents.
Kemi Badenoch has said leaks and briefings out of Downing Street are “having real-world consequences” as she accused Labour insiders of “fighting like rats”.
The Conservative leader told the Commons: “He talks about the decisions she’s already taken. If they were that great, we wouldn’t have all those farmers outside protesting.
“He doesn’t want to talk about leaks but we can see that the chaos in No 10 is having real-world consequences. Instead of focusing on the economy, they’ve been fighting like rats.
“Several journalists reported that No 10 sources had briefed against the Health Secretary (Wes Streeting) and other senior Cabinet ministers. The Prime Minister then told us that these briefings did not come from No 10. Will he repeat on the floor of the House the claim that none of his advisers has briefed against members of the Cabinet?”
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