Two-child profit restrict ‘set to be scrapped’ at Budget – combating poverty in ‘Labour’s DNA’
Chancellor Rachel Reeves will unveil the Budget on Wednesday, with Labour MPs expecting the government to abolish the Tory-era two-child benefit limit in full
A Cabinet minister has insisted tackling child poverty is in Labour’s DNA with the government expected to axe the two-child benefit limit at the Budget.
Heidi Alexander said there are a “lifetime of consequences” for kids growing up in poverty – and promised numbers will come down by 2029. It comes as Chancellor Rachel Reeves prepares to unveil the Budget on Wednesday, with Labour MPs expecting the two-child benefit limit to be abolished in full.
The austerity-era policy – introduced by the Tories in 2017 – restricts child tax credits and universal credit to the first two children in a family. Experts have blamed it on trapping kids in poverty.
Ms Alexander told the BBC’s Sunday with Laura Kuenssberg: “I think tackling child poverty is in the DNA of the Labour Party. Nobody wants to see kids going without. We know that children who are growing up in poverty have a lifetime of consequences associated – less likely to do well at school, more likely as a young adult not to be in employment or training.”
The Transport Secretary said would not be drawn on reports over scrapping the policy ahead of Wednesday’s Budget but gave another clear hint the two-child benefit limit will be lifted. She said: “One of the defining elements of this government for me is about what we can do to ensure that children’s chances in life aren’t determined by the size of their parent’s bank balance”.
Earlier this month the Chancellor also gave a strong signal the policy will be scrapped – at the cost of around £3billion. She said it was not right that a “child is penalised because they are in a bigger family, through no fault of their own”.
Papers on child poverty prepared for ministers and seen by The Mirror also make clear the consequences for kids who grow up in poverty. It says they are more likely to be lower skilled and not in employment, education or training. It adds children born into the third poorest families earn around 50% less at the age of 40 than those born into the richest third. And it warns they are five times more likely to be poor as adults if they have lower educational levels.
Green Party leader Zack Polanski said yesterday on the two-child benefit limit: “It’s absolutely outrageous it has taken the Labour government so long to do it, but if they do do it, that’ll be a victory and I’ll celebrate it.”
A government spokesman said: “Every child, no matter their background, deserves the best start in life. With almost three-quarters of children in poverty from working households, we know families are trying their best but need support.”
“That’s why our Child Poverty Taskforce will publish an ambitious strategy to tackle the structural and root causes of child poverty – failure to do so is bad for them and ultimately for the wider economy. We are investing £500million in children’s development through the rollout of Best Start Family Hubs, extending free school meals and ensuring the poorest don’t go hungry in the holidays through a new £1billion crisis support package.”
