Campaigners warned the ‘clock is ticking’ with more and more children suffering as the new Labour government fails to reverse the Tories’ two-child benefit limit
Some 10,000 children have been dragged into poverty due to the two-child benefit limit since Labour was elected to power, research shows.
It means 109 children have fallen into poverty each day since July 5, the day after the election, according to analysis from Child Poverty Action Group (CPAG). Keir Starmer is under mounting pressure to axe the Tories’ two-child benefit limit, which prevents people from claiming Child Tax Credits or Universal Credit for more than two children.
Around 1.6million kids are impacted by the policy, which was introduced in 2017, according to official stats. Campaigners warned the “clock is ticking” with more and more children suffering as the new Labour government fails to take action.
The Government has repeatedly stated that it cannot scrap the controversial welfare policy due to the state of the public finances but has continued to face pressure to do so from campaigners as well as some of its own MPs. In July the PM suspended seven rebel Labour MPs for voting against the government on the issue.
One family told CPAG they have been forced to “starve” themselves if any extra costs crop up since the dad of the house lost his job. They said their youngest child has never been to soft-play nor can they afford to do anything as a family.
“It makes you feel like you’re failing your children,” the parents said. “We have always worked. We’ve always tried as hard as we can but now it [our income] just doesn’t go far enough.”
Other parents said their kids have to wear shoes with holes in before they can afford to replace them, or that younger siblings aren’t able to enjoy things like swimming, baby groups or trips to a farm like their older brothers and sisters.
Research by the Institute for Fiscal Studies last week (OCT 3) found that reversing the two-child benefit limit would pull 540,000 kids out of absolute poverty – and cost £2.5billion a year. The think-tank said the rise in child poverty has been “entirely driven” by higher rates of poverty among families with three or more children.
Chief Executive of Child Poverty Action Group Alison Garnham said: “The clock is ticking while child poverty rises – and the two-child limit is the key driver of the increase. Scrapping it is the most cost-effective way to stop more kids being pulled into poverty on the Government’s watch. We welcome the government’s child poverty taskforce but the damage grows every day – the policy must be abolished in the upcoming Budget.”
The Joseph Rowntree Foundation (JRF), a social change organisation, said the CPAG figures “are a reminder that hardship isn’t on hold” and called for the Government to set out a plan this autumn. Katie Schmuecker, JRF principal policy adviser, said: “Not only is this morally the right thing to do, it will also begin to build greater economic security for households, taking some pressure off public services and strengthening our economy.”
A Government spokesman said: “No child should be in poverty – that’s why our new cross-government taskforce is developing an ambitious strategy to reduce child poverty and give children the best start in life. Alongside this, we have extended the Household Support Fund to support the most vulnerable with essentials this winter and have committed to reviewing Universal Credit while we deliver on our plan to tackle inequality and make work pay.”
