How many children, and households, will benefit, region by region, by removal of two-child benefit cap
Labour has put out these figures, from the Department for Work and Pensions, showing how many children, and how many households, will benefit from the lifting of the two-child benefit cap region by region. The figures are from April 2025.
Starmer says Reform UK and Tories are in ‘cruel alliance’ to raise child poverty, as bill to get rid of two-child benefit cap unveiled
Good morning. Today is an important day for anti-poverty policy because the government is publishing its universal credit (removal of two-child limit) bill, the legislation that will implement the budget pledge to get rid of the Tory law that removed child-related UC benefit payments for third and subsequent children. The government says this will lift almost 500,000 children out of poverty – making this the biggest single anti child poverty measure implemented by a government in modern times.
Keir Starmer is on a visit this morning publicising the legislation. What is interesting about this is that, before the 2024 general election, Starmer was not just not committing to get rid of the cap; he was presenting that as evidence to voters that Labour would be tough on spending. In July 2023 he told Laura Kuenssberg he was “not changing that policy”. And, when challenged about this two days later at a conference with a leftwing audience, he said:
We keep saying collectively as a party that we have to make tough decisions. And in the abstract, everyone says: ‘That’s right Keir.’ But then we get into the tough decision – we’ve been in one of those for the last few days – and they say: ‘We don’t like that, can we just not make that one, I’m sure there is another tough decision somewhere else we can make.’ But we have to take the tough decisions.
Two and a half years later, the line is very different. Today Starmer will talk proudly about getting rid of the two-child benefit cap and use child poverty as an issue to attack Reform UK and the Tories. According to extracts released in advance, he will say:
Nigel Farage seems intent on linking arms with the Conservatives in a cruel alliance to push kids who need help back into poverty. This child poverty pact is something that should worry us all. These aren’t numbers on a spreadsheet – these are children’s life chances at stake.
Labour chooses the other road – lifting almost half a million kids out of child poverty – and that’s what we’re doing this year. It’s the right thing to do for them, their families and our economy. It’s astonishing that Reform and the Tories would undo that change and leave a lost generation of kids in every corner of Britain.
The Conservatives would bring back the two-child benefit cap in full, and Reform UK would bring it back for all families, apart from those with two parents working full-time. Labour analysis says this means just 3,700 of the 470,000 families affected by the cap would benefit from the Nigel Farage exemption.
At a press conference yesterday Farage offered a new argument (which has not been set out as formal Reform UK policy), suggesting benefits like this should only go to British-born people. As Jessica Elgot reports, Rachel Reeves, the chancellor, responded by suggesting this was immoral.
Getting rid of the two-child benefit cap will cost about £3bn. The Tories and Reform UK are both saying that, by gettting rid of benefit spending like this, they would free up money for tax cuts. But, in an interview this morning, Pat McFadden, the work and pensions secretary, argued that this £3bn was “an investment in children’s future”. He told Sky News:
We came into office with a manifesto commitment to reduce child poverty. We did it the last time we were in power. Child poverty has risen by about 900,000 since 2010.
I don’t see this just as a cash transfer in terms of that £3 billion, I see it as an investment in children’s future, because we know that children from the poorest families will end up doing less well at school, less than a quarter of them get five good GCSEs, we know they’re four times more likely to have mental health problems later in life.
Here is the agenda for the day.
9.35am: Emma Reynolds, the environment secretary, speaks at the Oxford Farming Conference. As Helena Horton reports, she will say smaller farms will be prioritised for nature funding.
10am: Tim Davie, the outgoing director general of the BBC, and interim chief executive Jonathan Munro give evidence to the Commons public accounts committee about the BBC World Service.
Morning: Keir Starmer and Bridget Philliipson, the education secretary, are on a visit in Bedfordshire linked to the publication of the bill getting rid of the two-child benefit cap.
11.30am: Downing Street holds a lobby briefing.
11.30am: Lilian Greenwood, the transport minister, gives a statement to MPs on the road safety strategy announced yesterday.
Late afternoon: Peers debate a motion tabled by Charlie Falconer saying they should agreed to speed up the debate on the assisted dying bill so that it can return to the Commons in “reasonable time”.
Also, at some point this afternoon (UK time), David Lammy, the deputy PM, is meeting JD Vance, the US vice president. But a press conference has not been scheduled, and it is not clear yet how much either of them will want to say about their conversation.
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