Two-Child Benefit Cap to Remain Despite Budget Pressure
Anti-poverty campaigners and Labour supporters are set for disappointment as the UK government is not expected to fully abolish the controversial two-child benefit cap in the upcoming Budget. Chancellor Jeremy Hunt will deliver his fiscal statement on [insert date], but insiders suggest a complete removal of the policy is off the table.
What Is the Two-Child Benefit Cap?
Introduced in 2017 under Theresa May’s government, the two-child limit restricts Child Tax Credit and Universal Credit to the first two children in a family, with some exceptions (e.g., multiple births or non-consensual conception). Advocates argue it promotes fairness, but critics say it pushes low-income families deeper into poverty.
Growing Calls for Abolition
Pressure to scrap the cap has intensified, with Labour leader Keir Starmer previously indicating openness to reform. Charities like the Child Poverty Action Group (CPAG) say the policy affects 1.5 million children, and studies suggest abolition could lift 250,000 out of poverty.
Despite these calls, Treasury sources say a full reversal is unlikely due to the estimated £1.3 billion annual cost—a tough sell amid tight public finances.
Alternative Measures Expected
Instead of full abolition, the Budget may include:
– Expanded exemptions (e.g., for kinship carers or domestic violence survivors).
– Increased one-off cost-of-living payments.
– Adjustments to Universal Credit thresholds or taper rates.
Labour remains divided, with some MPs pushing for abolition while Shadow Chancellor Rachel Reeves stresses fiscal responsibility.
Political and Ethical Debate
Supporters argue the cap encourages responsible family planning, while opponents say it unfairly punishes children for circumstances beyond their control. With an election approaching, the issue could become a key battleground.
What the Budget May Deliver
While major reform seems unlikely, possible concessions include:
– Hardship fund expansions for struggling families.
– Inflation-linked adjustments to benefits.
– Narrower exemptions for vulnerable groups.
For campaigners, these steps may not be enough. The two-child cap remains a contentious symbol of austerity, with no clear resolution in sight.
Conclusion
The Budget is unlikely to bring the sweeping changes anti-poverty advocates want, leaving the two-child benefit cap in place. While minor tweaks may ease some pressure, the broader debate over welfare fairness continues.
Stay updated with NextMinuteNews for live Budget coverage.
