Tens of thousands of families with multiple children could receive thousands of pounds more in annual payments if ministers scrap the two-child benefit cap, according to official figures.
More than 70,000 households would be entitled to over £18,000 a year in child benefits if the policy is lifted, with the largest families gaining more than £20,000 compared with the current system.
The cap, introduced under Conservative welfare reforms, blocks parents from claiming the child element of universal credit worth £292.81 a month for a third or subsequent child born after April 2017.
Figures released in response to a parliamentary question show 71,580 families with five or more children would benefit from its removal. That includes nearly 15,000 families with six children, almost 5,000 with seven, and more than 400 with 10 or more, who could be eligible for the child payments.
Labour MPs are pressing Sir Keir Starmer to deliver on his pledge of fairness by abolishing the cap, which they argue is punishing children growing up in poverty. The Institute for Fiscal Studies has previously estimated that ending the policy would lift around half a million children out of hardship.
But Conservatives insist the cap is a matter of fairness for taxpayers, arguing that it prevents families on benefits from receiving packages worth more than the minimum wage. Nigel Farage has also called for it to be scrapped, leaving the Conservatives increasingly isolated in defending the measure.
The prime minister must find around £3.5bn to fund the move. Chancellor Rachel Reeves is weighing proposals, including a push from Gordon Brown to raise gambling levies.
Helen Whately, the shadow work and pensions secretary, said: “Without a cap, Labour will end up giving households thousands of pounds in extra benefits – a top-up worth more than a year’s full-time pay on the minimum wage. Not only is this unaffordable, it’s also unfair. If you’re in work you don’t get extra pay for another child, so it doesn’t make sense for parents on benefits to get more.”
She added: “Working people shouldn’t see their taxes go up to fund uncapped payouts to others who’ve opted out of work but opted in to multiple children.”
