Politics
Two-child cap scrapped, but child poverty still lingers
Thousands of families missing out
A Department of Work and Pensions (DWP) impact assessment has revealed that roughly 50,000 families who are currently affected by the two-child limit won’t actually be any better off once the cap is removed in April. This is due to the separate, overall benefit cap, which limits the total amount a single household can receive.
Likewise, another 20,000 families won’t receive the full benefit of the two-child cap’s removal, as it would take them above the overall limit.
The overall cap is currently frozen, and hasn’t increase with inflation since 2023. As things stand, the upper limit on benefits is currently £22,020 for a couple with children.
Worse still, it will remain in place for the coming fiscal year 2026/2027. MPs are only under a statutory obligation to review this limit every 5 years.
‘It’s not enough’
The DWP’s assessment underscores a warning issued last week by independent social change organisation the Joseph Rowntree Foundation. It stated that, even in spite of the removal of the two-child benefit cap, 4.2 million kids will still grow up in poverty by 2029.
Iain Porter, a senior policy adviser at the JRF, said:
It’s good news that the government has begun the process of reducing child poverty and the removal of the 2-child-limit for Universal Credit is a undoubtedly a step in the right direction.
But on its own it’s not enough.
Our analysis shows child poverty will fall sharply in April, but then stall. By the end of the parliament there will still be around 4m children in poverty – unless the government takes additional steps. An immediate and obvious step is to address the damage done by the benefit cap, which leaves families in hardship.”
The foundation urged the government to adopt a ‘protected minimum floor’ for Universal Credit. This would set a limit on payment reductions such as the overall benefit cap or debt deductions. Likewise, the JRF also called for an ‘essentials guarantee’, ensuring that benefit payments meet a minimum standard of living costs.
The second reading of the Universal Credit Bill brings us that bit closer to seeing the ruinous two-child cap scrapped, as it should have been all along.
However, as the Joseph Rowntree Foundation warned, Labour has much more work to do if they’re serious about their plans to tackle child poverty across the UK.
Featured image via Unsplash/the Canary