What is the two-child benefit cap? The controversial policy explained as Labour U-turn expected
What you need to know about the two-child benefit cap
- Labour is reportedly set to announce the abolition of the two-child benefit cap in the upcoming Budget, following significant pressure.
- Government insiders have indicated the move aims to address discontent among MPs and improve the party's standing in polls.
- Shadow Chancellor Rachel Reeves previously hinted at the change, arguing that children should not be "penalised" for family size.
- The Treasury is also considering alternative adjustments, such as increasing the limit to three or four children, rather than a complete removal.
- The policy, introduced in 2017, currently affects 1.6 million children and campaigners estimate its removal could lift 350,000 children out of poverty.