North East welcomes the lift of the two-child benefit cap

John McCabe, chief executive of the North East Chamber of Commerce believes the cap, which was lifted today (April 6), will make a “tangible difference to families”.

An estimated 450,000 children will be lifted out of poverty as a result of the scrap – with data revealing that 28 per cent of children across the North East live in deprivation (DWP).

First introduced by the Conservatives in 2017, the policy restricted child tax credit and universal credit (UC) to the first two children in most households.

Chancellor Rachel Reeves announced the cap would be lifted on April 6 when she delivered the budget in November, after months of pressure from Labour backbenchers.

Mr McCabe added: “The abolition of the two-child benefit cap is welcome and will make a tangible difference to families across the North East.

“Our members have long argued that this is one of the most powerful levers available to tackle the unacceptable rates of child poverty across the region.

“As our Unlocking the North East Economy 2025–2027 policy plan makes clear, tackling poverty is fundamental to improving educational outcomes, widening access to opportunity and supporting people into good quality work.

“Every day, I hear from business leaders who need people with the right skills and stability to drive their organisations forward. Reducing child poverty is how we build that pipeline.

“If we want the North East to compete on the global stage, we must start by ensuring every child can thrive.

“We will continue to work with our members to press for meaningful regional and national action to tackle child poverty and its wide-ranging impacts on North East communities and our economy.”

The Prime Minister said lifting the cap was one of a number of steps the Government has taken amid an increased focus on cost-of-living pressures caused by the war in Iran.

Sir Keir Starmer said: “No matter the global uncertainty, my Government will always be on the side of the British people in bearing down on the cost of living.

“I will never lose sight of how restless people are for change, and I am proud that today we are lifting nearly half a million children out of poverty, boosting support for pensioners, and delivering the biggest upgrade to workers’ rights in a generation.”

He added: “I know families across the country are concerned about the conflict in Iran and what it means for the cost of living.

“We are working closely with international partners to push for a de-escalation in the Middle East and the re-opening of the Strait of Hormuz.

“This is the most effective way to ease the pressure on the cost of living.

“I am clear that our response to the current global situation will define us for a generation, which is why we are taking the right long-term decisions now to ensure we emerge from this as a stronger, more secure nation.”

Writing in the Guardian newspaper, the Prime Minister described the raft of measures as “one of the proudest moments of this Labour Government”.

Sir Keir added: “Because it will lift nearly half a million children out of poverty. It means fuller cupboards, less anxiety at the end of the month, and a fairer start in life for children who had no say in the circumstances they were born into.

“And it tells you something fundamental about this Government – when faced with a choice, we act.”