UK Government ‘not going to rule anything out’ amid benefit cap pressure

Ministers are “not going to rule anything out when it comes to tackling child poverty”, Downing Street has said, after the UK Education Secretary suggested that scrapping the two-child benefit cap is “not off the table”.

Sir Keir Starmer and Rachel Reeves have been under pressure to axe the system which restricts child tax credit and universal credit to the first two children in most households.

The UK Government’s child poverty strategy, which was due to be published in the spring, is now set to come in the autumn so it can be aligned with the Chancellor’s budget.

Costs

Asked if she would scrap the cap, Education Secretary Bridget Phillipson – who is leading the UK Government’s child poverty task force alongside the Work and Pensions Secretary – told BBC Breakfast: “We’re certainly looking at it as part of the task force.

“As I say, nothing’s off the table but this is not straightforward, the costs are high.”

The Prime Minister’s official spokesman said on Tuesday that the Government is “absolutely committed to tackling child poverty”.

He later added: “We’ve been very clear that we’re not going to rule anything out when it comes to tacking child poverty, and the ministerial task force is considering all available levers to give every child the best start in life as part of our strategy.”

Plans

The spokesman said that he would not speculate on the measures that could be included in their plans.

Ms Phillipson also told BBC Radio 4’s Today programme that she has had conversations with charities and others who are campaigning for change on the issues and added: “What I’ve said to them is that we hear them.

“We want to make this change happen, and it will be the moral mission of this Labour Government to ensure that fewer children grow up in poverty, and that where you’re from does not determine everything that you can go on to achieve in life.”

Asked if the Prime Minster endorsed her words, his spokesman told reporters: “Of course, the Secretary of State is speaking for the Government.”

The two-child cap or limit was first announced in 2015 by the Conservatives and came into effect in 2017. It restricts child tax credit and universal credit to the first two children in most households.

Poverty

Plaid Cymru Westminster Leader Liz Saville Roberts reiterated calls for the cap to be abolished.

She said: “This Labour Government had the chance to scrap the two-child benefit cap 10 months ago but chose to uphold this shameful Tory policy instead.

“In Wales, child poverty is projected to rise from 32.3% in January 2025 to 34.4% by 2029 – with this cruel policy a major driver, pushing more and more children into poverty during the most crucial years of their development.

“Plaid Cymru have consistently called for the cap to be abolished. If this Government is serious about tackling the widespread poverty in our communities, it should step up, listen and act to deliver the meaningful change that it once promised.”

Organisations working in the sector have argued that 109 children across the UK are pulled into poverty by the policy every day.

Katie Schmuecker, the principal policy adviser at the Joseph Rowntree Foundation said on Tuesday: “To make sure child poverty falls during this Parliament, the Government must remove the two-child limit.

“With concern about hardship and the cost of living being so high, this would show ministers are serious about making a difference to the lives of low-income families.

“It is the most cost-effective way to lower child poverty.”