More than one hundred organisations have called on Labour to scrap the two-child benefit cap in full, as ministers reportedly consider ways to tweak – rather than fully remove – the controversial policy.
Writing to Sir Keir Starmer and Rachel Reeves, groups including the Child Poverty Action Group (CPAG), Citizens Advice and the British Medical Association (BMA), say it is “not the time for half-measures” in response to the reports.
“Now is the moment for the prime minister and chancellor to hear the voices of the UK’s children and take this vital opportunity to do the right thing,” they said in a joint letter.
“Abolishing the two-child limit in full will set millions of children’s lives on a path to a brighter future, and help to rebuild a stronger, fairer country and economy”.
The two-child benefit cap prevents parents from claiming universal credit or tax credit for their third child. It was introduced by the Conservatives and came into place in April 2017. It only applies to children who were born after 6 April 2017.
Ahead of the Budget on 26 November, Labour is reportedly considering scrapping the two-child benefit cap following pressure from backbenchers, campaign groups and political opponents.
Latest official figures show that 1.6 million children are living in families affected by the policy. Campaigners have said that 109 children across the UK are pulled into poverty by the policy every day, and that scrapping it would lift over 600,000 out of this level.
The number of children living in poor households has been steadily increasing over the past decade, with 4.5 million children – around one in three – now living in poverty.
On Tuesday, Ms Reeves gave the strongest hint yet that the government could abolish the controversial policy, saying she does not think it is right that children are “penalised” for being part of large families.
Speaking on BBC 5Live, the chancellor said it was important not to let the “costs to our economy in allowing child poverty to go unchecked”. She added: “In the end, a child should not be penalised because their parents don’t have very much money.”
Her comments were later echoed by Sir Keir, who said the government would be taking “a number of measures” to “drive child poverty down”.
It is understood that the Treasury is currently considering ways to mitigate the impact of the policy through tweaks, rather than fully lifting the cap. This could be done by increasing the limit to three or four children, for instance, or by introducing a taper rate that would see parents receive higher entitlement for their first child and less for subsequent children.
An announcement on the measure is expected either at the upcoming Budget, or as part of Labour’s delayed child poverty strategy, due to be published before the end of the year.
But the signatories, also including Save the Children UK, Barnardo’s and the TUC, warn that every day the limit remains “in any form”, it will keep pushing children into poverty. Their intervention reflects comment made last week by former prime minister Gordon Brown, who called for the “total abolition” of the policy.
Alison Garnham, chief executive of CPAG said: “Government wants to reduce child poverty but until the two-child limit is abolished in full its efforts will be hamstrung. This is a one-time chance to make the big difference needed for children. The policy must be scrapped in the Budget before more children have their life chances stunted.”
A Government spokesperson said: “Every child, no matter their background, deserves the best start in life.
“That’s why our Child Poverty Taskforce will publish an ambitious strategy to tackle the structural and root causes of child poverty.
“We are investing £500million in children’s development through the rollout of Best Start Family Hubs, extending free school meals and ensuring the poorest don’t go hungry in the holidays through a new £1billion crisis support package.”
