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Two-Child Benefit Cap May Be Scrapped, Says Education Secretary

Jul 22, 2024

1 min read

The two-child benefit cap, which restricts child tax credits and universal credit to the first two children in a family, is facing potential abolition. Education secretary Bridget Phillipson stated, "The two-child limit is unfair and has led to increasing child poverty. It is time to reassess policies that penalise families for having more children."


Children in poor estate
Children in poor estate - credit BBC

The policy has been controversial due to its impact on larger families, who argue that it leads to increased child poverty and financial hardship.


The Labour Party has indicated that it may scrap the cap if it comes to power, as part of a broader review of welfare policies aimed at reducing inequality and supporting families in need. Critics of the cap argue that it unfairly penalises children born into larger families and disproportionately affects those from lower-income households.


According to official figures, over one million children are currently affected by the two-child limit. Research by the Child Poverty Action Group and the Institute for Fiscal Studies has shown that the cap pushes families further into poverty and increases the likelihood of children growing up in destitution.


The Conservative government, however, has defended the policy, arguing that it encourages families to consider their financial situation before having more children and helps to control public spending on welfare.


As discussions around the future of the two-child benefit cap continue, many are watching closely to see whether Labour's potential policy change will come to fruition and how it could impact families across the UK.

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