Andy Burnham is set to become Prime Minister this month and will inherit new benefit rules that significantly increase Universal Credit payments for larger families. The controversial two-child benefit cap, scrapped under Keir Starmer, now allows parents to claim extra cash for all their children.
Scrapping the Two-Child Cap
The two-child benefit cap was lifted during Keir Starmer's premiership, a decision he describes as one of the most consequential of his tenure. Starmer says he is proud of the choice, stating it will lift half a million children out of poverty. However, Labour has faced criticism from opponents for increasing benefit spending.
Previously, families could only claim Universal Credit for two children. Under the new rules, households with three children receive £304 extra each month, while those with four children get an additional £608. This makes a considerable difference to family finances.
Andy Burnham's Support for the Change
Burnham, the former Greater Manchester Mayor, has long supported ending the cap. He said last year: "I never supported it, its introduction. It can’t be defended, because it’s arbitrary. Why does the third kid just get cut out or get less or why do all three if you’ve got three kids? I’m one of the three kids. My mum got child benefit for all of us … My parents always said to me something that has definitely guided me in my life – you can never visit the sins of the parents on the kids."
Impact on Households
The rule change means millions of households have seen benefit increases in recent weeks. For a family with three children, the extra £304 per month can cover essentials like food, clothing, and housing costs. For those with four children, the £608 boost provides even more significant relief. The policy aims to reduce child poverty, but it remains divisive among political opponents who argue it increases government spending.
