The Government is weighing up exempting parents of under-fives from the two-child benefit cap, but not scrapping it completely, according to reports – amid growing demands to tear the cruel policy up
Parents of under-fives could be exempted from the two-child benefit cap, it has been reported.
The move is said to be among a range of options ministers are considering as they try to bring down child poverty numbers without spending £3.6 billion to scrap the limit completely.
Pressure is mounting on the Government to abolish the austerity-era measure, which could affect a massive 4.29million children by the end of the decade. According to The Guardian, ministers are weighing up limiting the policy to those with children aged five or over.
A move to a three-child limit has also been suggested, but is not believed to be likely. The policy, introduced in 2017, restricts Child Tax Credit and Universal Credit to the first two children in households.
Keir Starmer faced a rebellion in his first weeks of becoming Prime Minister as Labour backbenchers demanded the cap was scrapped altogether. A source told The Guardian: “Officials are keen to mitigate the impact of the cap, if not lift it entirely.
“They have been discussing a range of options to do so, but at the moment, helping parents of under-fives seems to be one of the most likely.”
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”.
Education Secretary Bridget Phillipson told The Mirror last week the Government’s child poverty 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.”
