Ministers have been cautioned that completely eliminating the two-child limit is crucial in the fight against rising child poverty rates, with projections showing a potential peak of 34% – equivalent to approximately 4.8 million children – by the end of the decade if immediate action is not taken, according to the Resolution Foundation.
The current policy, which restricts Child Tax Credits and Universal Credit to the first two children in a family, has been heavily criticized by charities for exacerbating child poverty. Opposition figures like Keir Starmer and Chancellor Rachel Reeves are contemplating either scrapping or modifying the Tory-era measure as part of an upcoming review on child poverty.
While there have been discussions about potentially shifting to a three-child limit or reducing benefits for third and subsequent children, the Resolution Foundation argues that only a complete repeal of the limit would be effective in curbing child poverty. Any partial measures are predicted to result in persistently high rates of child poverty over the coming years.
The foundation’s report emphasizes the necessity of immediate action, suggesting that waiting would lead to a significant spike in child poverty levels. Alex Clegg of the Resolution Foundation highlighted the urgency, stating that overturning the two-child limit on benefits is the most effective way to prevent more children from falling into poverty.
Responding to the concerns raised, a government spokesperson emphasized the commitment to addressing child poverty through targeted strategies and investments. Initiatives such as the Best Start Family Hubs program, free school meal extensions, and a crisis support package worth £1 billion are part of the government’s efforts to provide better opportunities for children from all backgrounds.