DWP Under Pressure: Keir Starmer Told to End Two-Child Benefit Limit

UK Prime Minister Keir Starmer has been warned that his government risks an “embarrassing record” of rising child poverty by 2029 if it does not scrap the two-child benefit limit. The Resolution Foundation, a leading think tank, has projected that without urgent action, the number of children living below the poverty line will hit a record high of 4.6 million by the end of the decade.

With ministers set to publish a child poverty strategy in the spring, the debate over abolishing the two-child benefit limit is intensifying. Critics argue that this policy, introduced in 2017 by then-Chancellor George Osborne, unfairly restricts financial support for larger families and traps children in poverty.

The Impact of the Two-Child Benefit Limit

The two-child limit prevents families from receiving Child Tax Credit and Universal Credit for more than two children, significantly reducing financial support for larger households. The Resolution Foundation has highlighted that:

• Scrapping the two-child limit and the benefit cap would cost £4.5 billion but could lift 500,000 children out of poverty by 2029.
• The bare minimum action required should include removing these restrictions and expanding free school meals to all families receiving Universal Credit at a cost of £1.2 billion.
• A more ambitious strategy could lift 900,000 children out of poverty by the end of the decade.

Government’s Response and Future Strategy

Education Secretary Bridget Phillipson, who is leading the child poverty task force alongside Work and Pensions Secretary Liz Kendall, has confirmed that the strategy will review “all social security measures and all aspects of Universal Credit.” However, she did not clarify whether the two-child limit would be removed.

The government has defended its efforts, with a spokesperson stating:

“No child should be in poverty – that’s why our Ministerial Taskforce is exploring all available levers to give every child the best start in life as part of our Plan for Change.”

They also pointed to recent policy changes, including:

• Increasing the National Living Wage
• Uprating benefits
• Introducing a Fair Repayment Rate for Universal Credit deductions, which is expected to support 700,000 of the poorest families

Experts Call for Urgent Action

Adam Corlett, Principal Economist at the Resolution Foundation, emphasized the need for decisive action:

“With a record 4.6 million children set to fall below the poverty line by the end of this Parliament, the Government is right to be formulating a new strategy to combat this scourge of modern Britain. However, a credible new strategy will need more than warm words.”

He stressed that unless policies like the two-child limit are reversed, the government’s child poverty strategy will lack credibility.

The UK government faces mounting pressure to take bold steps in tackling child poverty. While a child poverty strategy is set to be published soon, experts insist that without scrapping the two-child benefit limit, the plan will fall short of its goals. The cost of action may be significant, but as experts warn, the cost of inaction will be even greater—potentially leaving the government with a legacy of rising child poverty.

Source: Link

FAQ’s