Scotland has vowed to axe the ‘pernicious’ two-child benefit limit in a move that will pile massive pressure on Prime Minister Keir Starmer to cut the Tory benefit rule
Scotland has vowed to axe the “pernicious” two-child benefit limit in a move that piles massive pressure on Keir Starmer.
The Scottish government announced at the Budget on Wednesday the controversial policy – blamed for trapping kids in poverty – “will be scrapped”. Finance Secretary Shona Robison said eradicating child poverty was a “top priority”.
She said the two-child benefit limit, which impacts around 15,000 children in Scotland, will be mitigated with funding provided to affected families by 2026.
She added: “We’ve waited but Labour haven’t delivered – this SNP government will. We will work as hard as possible in 2025 so we can start paying families as early as we can in 2026. Be in no doubt the cap will be scrapped. My challenge to Labour is to work with us.”
But Mr Starmer has resisted calls to call time on the austerity-era policy despite research showing it could lift 540,000 children out of poverty across the UK. The Institute for Fiscal Studies said in October removing the policy – first introduced by George Osborne – would cost around £2.5billion-a-year.
The policy, which prevents people from claiming Child Tax Credits or Universal Credit for more than two children, was introduced by the Tories in 2017. Government figures earlier this year showed around 1.6 million kids are impacted.
The PM has argued he will not make unfunded promises and in the summer suspended seven rebel Labour MPs for voting against the government on the issue. The UK government has instead launched a child poverty task force that is not due to report back until spring 2025.
Chief executive of the Child Poverty Action Alison Garnham said: “The Scottish government has made the right decision but Westminster must now step up and scrap the two-child limit UK-wide.
“There can be no justification now for Westminster dragging its feet and continuing to roll out poverty to more and more children through this policy from the austerity era.
“If the PM wants families to feel improvements in their living standards, the policy must be scrapped when the government’s child poverty task force reports in spring.”
The Joseph Rowntree Foundation’s Katie Schmuecker adder: “The Scottish Government’s commitment to eradicate the two child limit in Scotland is a positive recognition that this is a policy that increases poverty, leaving families cold and parents skipping meals to try to make budgets stretch.
“Tough choices come down to priorities and UK Government ministers should pay close attention.”
