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The education secretary has highlighted the challenges posed by the government’s recent reversal on welfare changes, declining to commit to scrapping the two-child benefit cap. Bridget Phillipson emphasized that ministers were exploring all options to alleviate child poverty but cautioned that removing the cap would have financial implications. She asserted that the administration was actively supporting families in various ways to tackle the cost of living.
A rebellion from Labour MPs compelled the government to dilute a set of welfare reforms that aimed to save £5bn annually by 2030, casting doubt on the savings and putting pressure on Chancellor Rachel Reeves ahead of the autumn Budget. Among the revisited reforms was the potential lifting of the two-child benefit cap, a policy restricting means-tested benefits to a maximum of two children per family born after April 2017. Approximately 1.6 million children reside in households affected by this restriction.
Despite the setback, Phillipson and Work and Pensions Secretary Liz Kendall are leading a child poverty taskforce, evaluating the case for eliminating the cap alongside other policy options. The taskforce is slated to unveil a strategy for reducing child poverty later in the year, following the government’s launch of the initiative last year amidst calls from opposing parties and Labour MPs to abolish the two-child benefit cap.
During a recent interview, Chancellor Rachel Reeves expressed openness to considering various policies to combat child poverty, signaling a departure from a rigid stance. Amidst calls for lifting the benefit cap, Phillipson stressed the necessity of maintaining a strong economic foundation while supporting families through resources like family hubs, free school meals, and childcare. Additionally, the Conservative shadow chancellor highlighted the importance of addressing the growing benefits bill, proposing amendments to the welfare reform bill as it progresses through Parliament
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