The government has been cautioned that completely removing the two-child limit is vital in the effort to decrease high child poverty rates before the upcoming election. A report by the Resolution Foundation predicts that without immediate action, child poverty rates could soar to 34%, affecting approximately 4.8 million children by the end of the decade.
Opposition leader Keir Starmer and Chancellor Rachel Reeves are contemplating either abolishing or weakening the longstanding Tory policy that restricts Child Tax Credits and Universal Credit to the first two children in a family. Charities have criticized this policy for contributing to the entrapment of children in poverty.
The Resolution Foundation emphasized that only a complete repeal of the two-child limit would be effective in reducing child poverty. They argue that implementing partial measures, such as transitioning to a three-child limit or reducing benefits for third and subsequent children, would still result in elevated child poverty rates in the coming years.
Alex Clegg from the Resolution Foundation warned that failing to take action in this parliamentary term could lead to a significant rise in child poverty, with over one-third of children living in poverty by 2029-30. The most impactful solution, according to Clegg, is to eliminate the two-child limit on benefits entirely.
In response, a government spokesperson stated that every child deserves an equal chance in life and announced plans for a comprehensive strategy to address the structural causes of child poverty. The government is investing in children’s development through initiatives like the Best Start Family Hubs program, expansion of free school meals, and a £1 billion crisis support package to prevent hunger among the most vulnerable children during school holidays.