Category Archives: Child benefits

Rachel Reeves targets UK’s wealthiest in £26bn tax-raising budget

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Chancellor axes two-child benefit cap and cuts energy bills paid for by mansion tax and freezing tax thresholds

Rachel Reeves targeted Britain’s wealthiest households with a £26bn tax-raising budget to fund scrapping the two-child benefit policy and cutting energy bills.

On a chaotic day that involved key details of her budget accidentally being released early by the Office for Budget Responsibility (OBR), the chancellor defended the measures, saying she was “asking everyone to make a contribution to repair the public finances”, but that she wanted the wealthiest to pay the most.

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Lucy Powell: Labour should raise gambling taxes to axe two-child benefit cap

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Deputy leadership candidate says party needs to be ‘clear that our objective is to lift children out of poverty’

Labour should consider raising taxes on gambling firms to cover the cost of lifting the two-child benefit cap, the party’s deputy leadership candidate Lucy Powell has suggested.

The Manchester Central MP, who is battling with the education secretary, Bridget Phillipson, to succeed Angela Rayner as Labour’s deputy leader, also acknowledged the public was “exasperated” because of “some mistakes” Labour had made in office.

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Scrap two-child benefit cap to help lift 4m people out of poverty, government urged

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Exclusive: Cross-party Poverty Strategy Commission says abolishing limit would be part of its ‘once in a generation’ plan

A cross-party commission including former welfare ministers is urging the government to scrap the two-child benefit limit as part of an ambitious “once in a generation” plan to lift millions of people out of poverty.

The Poverty Strategy Commission said billions of pounds of investment – including a boost to the rate of universal credit – was needed to reverse record levels of poverty in the UK, and tackle longstanding failures over rising hardship and destitution.

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Charities step up pressure on Keir Starmer to scrap two-child benefit cap

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Exclusive: Survey commissioned by children’s charities shows UK voters want to see families prioritised

Charities and a Labour-aligned pressure group are ramping up calls on Keir Starmer to scrap the two-child limit on benefits, as polling shows support for action on youth poverty remains high, and is equally solid among Labour voters tempted by Reform.

As discussions continue in government ahead of the forthcoming child poverty strategy, a survey commissioned by a coalition of charities suggests voters want to see families prioritised.

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Ditching two-child benefit cap would cut deaths and A&E admissions, study says

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England research shows huge benefits with resulting savings for NHS and councils

Curbing child poverty by scrapping the two-child benefit cap would save hundreds of lives a year and avoid thousands of admissions to hospital, the largest study of its kind suggests.

Keir Starmer has faced repeated demands from within Labour ranks and opposition leaders to abolish the policy, which was announced in 2015 by George Osborne, then chancellor. Almost half of all children in some towns and cities now live below the breadline.

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Benefit cap traps families in crowded, rat-infested homes, report finds

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Limit on welfare support, introduced in 2013, leaves some with just £4 a day for each family member

Low-income families affected by the benefit cap are living on as little as £4 for each person a day, often in overcrowded, rat-infested and damp homes with little prospect of escape, according to a new study.

The cap puts a ceiling on the amount a working-age family can receive in welfare support if no one in the household is working or they are on very low wages. Families affected by it in many parts of the country are, in effect, trapped in poor quality, private rented properties they cannot afford, even though these are often already the cheapest homes available in their local area, the London School of Economics study said.

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Labour MP calls two-child benefit cap ‘heinous’ in latest call to scrap policy

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Keir Starmer under pressure to scrap limit as more than dozen MPs thought to support king’s speech amendment

Keir Starmer has come under further pressure to scrap the two-child benefit limit after another of his backbench MPs described the policy as “heinous”.

Writing in The Sunday Times, Canterbury MP Rosie Duffield said the cap, which came into effect under then-chancellor George Osborne in 2017, was “sinister and overtly sexist” and had been the main reason driving her to stand for parliament.

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