Keir Starmer has hinted that the two-child benefit limit may be removed during the upcoming Budget announcement. The Prime Minister expressed his personal commitment to reducing child poverty, currently affecting 4.5 million children, and assured that various measures would be introduced to address this issue when the Chancellor presents the Budget on November 26.
This indication follows Rachel Reeves’ statement on Monday suggesting the potential removal of the two-child benefit limit under Universal Credit. During an interview on ITV’s Lorraine program, Mr. Starmer emphasized his determination to decrease child poverty, reflecting on the achievements of the previous Labour government in combating this issue.
While existing initiatives like free school meals and childcare support are in place, Mr. Starmer stressed the need for additional actions to alleviate child poverty. Regarding the two-child benefit limit, he assured that significant measures would be implemented to achieve this goal.
The government led by Mr. Starmer is reviewing the policy introduced by the Conservatives in 2017 as part of a child poverty assessment expected to coincide with the Budget release. Reports suggest possible adjustments to the policy, including a shift towards a three-child benefit limit.
Furthermore, Rachel Reeves advocated for the complete abolition of the two-child benefit limit, aligning with the stance of former Labour Prime Minister Gordon Brown. She emphasized the unfairness of penalizing children based on family size and pledged to reduce the number of children living in poverty.
The Chancellor highlighted the economic repercussions of unchecked child poverty on BBC Radio 5 Live, emphasizing that children should not suffer due to their parents’ financial circumstances. She underscored the diverse reasons for family dynamics changing over time and reiterated the commitment to addressing child poverty.
A Treasury source interpreted these statements as a clear indication of the Chancellor’s intentions, signaling potential changes in the upcoming Budget announcement.