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Education Secretary Bridget Phillipson has addressed the potential elimination of the two-child benefit cap, acknowledging that it would come with a hefty price tag. In a conversation with the BBC, she highlighted the negative impact of the policy, which restricts most families from receiving means-tested benefits for any third or subsequent children born after April 2017, pushing many into poverty. Despite recognizing the need for change, Phillipson emphasized the financial challenges associated with overhauling the social security system.
The government is set to reveal its decision on the cap in the autumn when it releases its child poverty strategy. Phillipson, alongside Work and Pensions Secretary Liz Kendall, leads the Child Poverty Taskforce responsible for formulating this strategy, initially slated for spring but postponed to the autumn. The establishment of the taskforce last year came amidst calls from the SNP and certain Labour MPs to abolish the cap, fuelled by mounting pressure following Labour’s lackluster performance in recent local elections.
While addressing the issue, Phillipson stressed that the taskforce is exploring all options concerning the cap. She underscored the contrasting priorities of a Labour government, asserting that such policies scar the prospects of children in the country significantly. Reform UK leader Nigel Farage pledged to remove the cap if his party assumes power, citing improved conditions for lower-income families as the rationale. On the other hand, Conservative shadow chancellor Mel Stride defended the existing policy, arguing that financial constraints necessitate the two-child limit for families reliant on benefits.
Calls to scrap the cap have come from various political parties, including the Liberal Democrats, the Green Party, the SNP, and Plaid Cyrmu. They condemn the current system’s punitive nature towards families, echoing sentiments that the government must act swiftly to rectify this situation. Statistics from the Department of Work and Pensions reveal that approximately 1.6 million children live in households affected by the cap, prompting organizations like the Resolution Foundation think tank to advocate for its removal, estimating that this move could cost £3.5bn but might uplift 470,000 children out of poverty
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