Two-child benefit cap comes to an end with aim of lifting 450,000 out of poverty

The two-child cap on benefits officially ends on Monday, a move Sir Keir Starmer said showed his Government was “on the side of the British people”.

An estimated 450,000 children will be lifted out of poverty as a result of the two-child benefit cap being scrapped by the Government.

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.

The Prime Minister said it 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 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.”

Human rights organisations Amnesty International led calls for the Government to go further in its ambitions to tackle poverty in the UK.

Jen Clark, Amnesty International UK’s economic, cultural and social rights lead, said: “However welcome the lifting of the two-child limit is, it fails to go far enough to help the vast majority of children living in poverty in the UK.

“The Government urgently needs to make changes to the social security system to make it fairer, particularly given the growing cost-of-living crisis.

“This includes removing the benefit cap and scrapping the devastating system of sanctions.

“For decades, these policies have kept those most in need in poverty, forcing parents to choose between putting food on the table and turning the heating on.”

Conservative leader Kemi Badenoch said the decision to scrap the cap meant the Government was favouring benefits claimants over working people.

Mrs Badenoch said: “While working people struggle with rising fuel costs and food prices, Keir Starmer is giving another handout to those on benefits.

“The Conservatives believe in fairness and that those on welfare should have to make the same choices about their family as those who aren’t. That’s why we would reinstate the two-child cap and use the savings to bolster our armed forces.

“In an increasingly dangerous world, we have to prioritise, and my plans will ensure a stronger economy and a stronger country.”

As the two-child cap ends, a series of other Government policies aimed at helping people with rising living costs are also coming into force.

This includes day one rights to paternity leave, and reforms to statutory sick pay as part of the Employment Rights Act.

The state pension is also going up, something the Government says will be worth up to £575 a year for a new claimant.

Housing benefit and personal independence payments are among the benefits which are also being uprated.

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.”