The UK government is facing increasing pressure to scrap the two-child benefit limit, with some Labour MPs also opposing the policy on the grounds that it exacerbates child poverty. However, Prime Minister Keir Starmer has maintained that the policy’s abolition is not currently affordable. The limit, introduced by the previous Conservative government, prevents universal or child tax credit households from receiving payments for third or subsequent children born after April 2017. According to data from the Department for Work and Pensions, the number of children affected by the limit rose to 1.6 million in the year to April while 440,000 households had their benefits cut, an increase of almost 8%.
The Resolution Foundation think tank has estimated that scrapping the policy would cost the current Labour government £2.5 billion this year. Despite opposition from some Labour MPs, the size of the party’s Commons majority means that it could survive any significant rebellion from its own members and from opposition MPs. However, Starmer is likely to wish to avoid a showdown over an issue on which many of his MPs feel strongly.
The Liberal Democrats have not ruled out tabling an amendment in Parliament next week to force the issue, whilst the Scottish National Party is supportive of abolition but has yet to determine a strategy. Some Labour politicians are hoping for a change of heart from the government during next week’s King’s Speech in which planned legislation for the year ahead is unveiled. There is clear evidence of financial losses facing affected families and of increasing levels of poverty for larger families.
Child benefit payments, which were set to be cut by £20 a week in April due to the end of a Covid-related emergency provision, have been temporarily retained for a further six months
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