Rachel Reeves has indicated support for removing the existing limits on benefits associated with family size as part of the upcoming Budget. During an interview with the BBC, she emphasized that it is unfair for children in larger families to face financial disadvantages due to circumstances beyond their control. This statement suggests a potential reconsideration of the two-child limit on working-age benefits introduced by the Conservative government in 2017.
Reeves’ comments reflect a growing sentiment among some Labour MPs, who are advocating for a complete reversal of the two-child policy. Reports have emerged that Treasury officials are exploring alternative approaches, potentially involving a tapering system where parents would receive larger benefits for their first child and reduced amounts for any additional children. Other options reportedly include capping additional benefits for families at three or four children.
In her discussion on BBC Radio 5 Live, Reeves reiterated her stance against limiting benefits based on family size, framing her approach as a commitment to addressing child poverty. She recalled the achievements of the previous Labour government in reducing child poverty and expressed a desire to continue that legacy.
Additionally, Reeves hinted at the government’s intention to deviate from Labour’s previous manifesto pledge concerning tax rates, indicating that stability in the economy may require tough choices. She acknowledged that adhering strictly to past commitments could necessitate deep cuts in capital spending.
The current two-child cap restricts households benefiting from universal or child tax credits, preventing payments for any third or subsequent child born after April 2017. According to the Resolution Foundation, abolishing this cap could cost approximately £3.5 billion but may also alleviate poverty for about 470,000 children. Pressure to eliminate this limitation has increased, particularly during Labour’s recent deputy leadership contest, where both Lucy Powell and Bridget Phillipson expressed support for stronger measures to combat child poverty. Reform UK has also stated its intention to scrap the cap if it gains power, while the Conservatives have described the removal of the limit as economically unfeasible.
Source: https://www.bbc.com/news/articles/c70j7dxjp5wo?at_medium=RSS&at_campaign=rss