Chancellor Rachel Reeves is said to be looking at several options to replace the Tory-era austerity policy blamed for trapping hundreds of thousands of kids in poverty
Labour is considering scrapping the controversial two-child benefit limit and replacing it with a new tapered system.
Chancellor Rachel Reeves is said to be looking at several options to replace the Tory-era austerity policy blamed for trapping kids in poverty.
Government officials stressed that no decision has been taken with the child poverty taskforce – set up by Keir Starmer – completing its work .One government source told The Mirror: “No decisions have been made. Work on the child poverty strategy is ongoing.”
Reports suggested the two-child benefit limit, which restricts Child Tax Credits and Universal Credit to the first two children in a family, could be replaced. Options include a new tapered rate with parents receiving the most money for the first child and less for their other children.
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The Treasury was also said to be examining whether the two-child benefit limit could be made less severe by giving the additional benefits to families with three or four children.
Child poverty charities have repeatedly demanded the cruel policy ushered in by welfare slasher George Osborne be axed completely to lift hundreds of thousands of kids out of poverty.
Earlier on Tuesday Ms Reeves refused to confirm whether she was planning to scrap the two-child benefit cap when grilled at a fringe event at the Labour party conference.
Asked about reports she would do so at the Budget, she said: “Keir said in his speech today that we will reduce child poverty in this Parliament, but we will set out the policies in the Budget.
I think we’ve been pretty clear this week that we can’t commit to policies without us explaining where the money is coming from.”
Lord John Bird, Big Issue founder and crossbench peer, welcomed the reports and said the policy had punished millions of children.
But he warned: “Now we must build on this bold first step to smash the systems that entrench children in poverty and rob them of their potential – which means scrapping the cap in full. Tapered versions of the cap will not be enough to deliver Labour’s ambitious promise to reduce child poverty.
“We need proper, measurable targets to keep up this promising momentum and propel further action that can truly shift this malignant poverty crisis.”
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