Major Benefit Change Set to Lift Thousands of Children Out of Poverty
In a significant shift for family support, Chancellor Rachel Reeves is expected to announce the removal of the controversial two-child benefit cap in her Budget on Wednesday, November 26.
This policy change will directly impact families receiving Universal Credit and child tax credit, who have been limited to claiming support for only their first two children if subsequent children were born after 6 April 2017.
Financial Impact and Political Debate
The removal of the cap means that for a third or subsequent child, families will now be able to claim an additional £292.81 per month in Universal Credit. This substantial increase is poised to have a major effect on household budgets across the country.
The policy has been a subject of intense political debate. Conservative MP Sir Mel Stride, who confirmed the Chancellor's intention to scrap the cap, defended the previous policy, stating: "You should be taking the same tough choices that taxpayers take when it comes to whether you can afford to have a larger family or not."
He further emphasised his belief that "the best way of getting people and families out of poverty is through work and employment", expressing concern about creating a culture where "too many people are on benefits."
Public Reaction and Expert Analysis
Public opinion on the change appears divided. Caroline, a 42-year-old mother of a four-year-old named Henry, voiced concerns that the policy reversal might discourage work, saying: "It makes you wonder why people bother working." She added that "nowadays there is a culture in Britain where some have come to expect handouts" and argued that "the two child cap should stay in place."
However, anti-poverty campaigners have welcomed the anticipated change. Alison Garnham, chief executive of the Child Poverty Action Group, described scrapping the cap as "the right thing to do" and highlighted its significant impact.
According to her analysis, this single policy reversal would instantly lift 350,000 children out of poverty and reduce hardship for an additional 700,000 children.
"Removing this invidious policy would mean millions more children get the fair start in life they deserve," Garnham stated.
The human impact was echoed by one mother who told the Guardian that an end to the policy would mean "my children would be able to have more of the things they need," highlighting the real-world difference this financial support can make to family life.
