1.6 Million Children Affected: Pressure Mounts on Starmer to Repeal Two-Child Benefit Cap Amid Poverty Concerns

1.6 million kids impacted by the two-child welfare limit, with Starmer under scrutiny to eliminate it

Advocates and legislators caution that without governmental intervention, many big families risk slipping into poverty.

Political correspondent @alixculbertson

Thursday, July 11, 2024, 12:

Currently, 1.6 million children are impacted by the government's two-child limit on benefits, prompting calls for the Labour administration to abolish the policy.

The Tory administration has implemented a policy limiting claims for child tax credit and Universal Credit to a maximum of two children, affecting those born subsequent to April 2017.

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The Resolution Foundation has stated that families are unable to claim approximately £3,200 annually for each additional child.

Lalitha Try, an economist at the organization, indicated that there was minimal proof of the policy's success in increasing job opportunities, while there was "clear evidence" showing financial detriment to families.

"She added that if the policy remains, most children from big families will be impoverished by the parliament's end. She emphasized that any forthcoming strategy to tackle child poverty must allocate resources to eliminate this issue."

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Recent official data indicates that in April, approximately 1.6 million children were impacted by the imposed limit.

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Out of the 1.6 million total, 1.3 million belonged to families receiving Universal Credit, typically indicating a low or no income situation, while 270,000 were recipients of child tax credit, a benefit accessible to all.

As of April this year, the count of impacted households has surged to 450,000, up from 71,000 in April 2017.

Sir Keir Starmer initially advocated for eliminating the cap, but reversed his stance last year, stating that he would maintain it if Labour came to power, citing the financial conditions they would inherit.

He has faced calls from within his own party, including from ex-Labour Prime Minister Gordon Brown, to eliminate the cap, which Brown described as a policy that "dooms children to poverty."

Ex-Tory home secretary Suella Braverman unexpectedly joined the ranks of those opposing the policy.

Labour MP Kim Johnson is advocating for Sir Keir to prioritize the removal of the cap in the upcoming King's Speech scheduled for next week.

Ms. Johnson informed Sky News, "Liverpool Riverside, the area I represent, ranks as the most impoverished in the nation. Currently, almost 50% of the children in my district are living in poverty."

"The clients I advocate for are at their limit of patience. Labour faces a monumental challenge in repairing 14 years of Conservative deterioration, and tough choices will be necessary regarding which issues to address first."

"I believe that removing the two-child limit on benefits should be a top priority for the incoming administration, as it is the quickest and most efficient method to reduce child poverty in areas like mine nationwide."

"This policy enjoys widespread backing from various political parties, and I believe there is no more pressing issue at hand."

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The Liberal Democrats, Scottish National Party, and Plaid Cymru have all demanded the removal of the cap.

Work and Pensions Secretary Liz Kendall stated, "It’s unacceptable that so many children are being raised in poverty, which is a blight on our community."

"We are committed to ensuring that every child receives an excellent beginning by fulfilling our pledge outlined in the manifesto to adopt a comprehensive plan aimed at decreasing child poverty."

"Next week, I am scheduled to convene important discussions with both charity representatives and specialists to initiate this pressing project."

Families receive a weekly sum of £25.60 for their first or sole child, and £16.95 for their second child, with no additional payments for any subsequent children.

The child tax credit is accessible to everyone, but parents earning over £60,000 annually are subject to a fee. For those making £80,000 or more, this fee equals the child benefit amount, leading many to opt out of claiming it.

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