The Resolution Foundation estimates without urgent action the number of kids falling below the poverty line will hit a record high of 4.6million by the end of the decade
Keir Starmer is warned today he will be left with an “embarrassing record” of rising child poverty by 2029 if he fails to scrap the two-child benefit limit.
The Resolution Foundation estimates without urgent action the number of kids falling below the poverty line will hit a record high of 4.6million by the end of the decade. The grim forecast comes as ministers prepare to publish a child poverty strategy in the spring and tackle a “scourge of modern Britain”.
But the think-tank says it won’t be credible if there is no commitment to axe the two-child benefit limit – a Tory-era policy blamed for trapping kids in poverty. It was first announced by austerity Chancellor George Osborne in 2017 and restricts Child Tax Credit and Universal Credit to the first two children in households.
The Resolution Foundation adds scrapping the measure alongside the benefit cap would cost £4.5billion and lift 500,000 kids out of poverty by the end of the decade.
But the report warns it should be the “bare minimum” required from the child poverty strategy. Ministers should also extend free school meals to all families receiving Universal Credit – at a cost of £1.2 billion, it adds.
Education Secretary Bridget Phillipson told The Mirror last week the strategy will look at “all social security measures and all aspects of Universal Credit”. Ms Phillipson, who is leading the child poverty task force alongside Work and Pensions Secretary Liz Kendall, refused to be drawn on the future of the two-child benefit limit.
But she said: “Like so many Labour MPs I came into politics because I want all children to have the best possible start in life and poverty holds back too many of our children. ”
Adam Corlett, Principal Economist at the Resolution Foundation, said: “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. A Government that is serious about reducing child poverty will need to undo some of the policies announced by previous governments, such as scrapping the two-child limit.”
He added: “The upcoming spending review should also look to extend free school meals to more families. An ambitious strategy could support around 900,000 children out of poverty by the end of the decade. And while the cost of this action may seem daunting, the cost of inaction is far greater and could leave the Government with an embarrassing record of rising child poverty.”
A Government spokesman said: “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. As we fix the foundations of the economy, we are increasing the Living Wage, uprating benefits and supporting 700,000 of the poorest families by introducing a Fair Repayment Rate on Universal Credit deductions to help low-income households and make everyone better off.”