Pressure is growing to eliminate the two-child benefit limit, which Labour Party members argue is causing visible harm. Bridget Phillipson, co-chair of a panel addressing child poverty, emphasized the necessity of this mission. Over 100 MPs have urged Chancellor Rachel Reeves to scrap the policy, which restricts child tax credit for families with more than two children.
Phillipson stressed the need for further action, advocating for reconsideration of the two-child limit due to its evident negative impact. A forthcoming government strategy aims to reduce child poverty, with 101 Labour MPs proposing increased taxes on gambling companies to fund the removal of the cap, a proposal endorsed by former PM Gordon Brown.
Research from the Resolution Foundation estimates that eliminating the cap would cost £3.5 billion but would benefit 470,000 children by lifting them out of poverty. Phillipson highlighted her efforts to secure free school meals and breakfast clubs, emphasizing their importance for children’s well-being and prospects.
Keir Starmer faced early challenges within his government regarding the two-child limit, which was introduced under the Conservative Party. Labour MPs have called for action to address child poverty alongside the regulation of gambling profits, which they argue contribute to societal harm and financial burdens on public services.