Ministers have been cautioned that completely removing the two-child limit is crucial in the effort to decrease high child poverty rates before the next election, according to the Resolution Foundation.
The foundation has projected that child poverty rates could surge to 34%, affecting approximately 4.8 million children, by the end of the decade unless immediate measures are taken.
The potential review on child poverty by Keir Starmer and Chancellor Rachel Reeves is contemplating the removal or modification of the existing policy that limits benefits to the first two children in a family, a policy introduced during the Conservative government. This policy, criticized by charities for ensnaring children in poverty, affects Child Tax Credits and Universal Credit.
Despite discussions about potentially transitioning to a three-child limit or reducing benefits for third and subsequent children, the Resolution Foundation argues that such partial measures would still result in elevated child poverty rates by the decade’s end.
The report’s authors emphasize that only a complete repeal of the limit can effectively reduce child poverty and urge for immediate action post the upcoming Budget announcement by the Chancellor.
Alex Clegg from the Resolution Foundation stated, “Failing to act in this parliamentary term will lead to a record high in child poverty by 2029-30, with over a third of children living in poverty. Removing the two-child limit on benefits is the most impactful solution to uplift children out of poverty.”
The government has expressed its commitment to addressing child poverty through the forthcoming strategy by the child poverty taskforce, highlighting investments in children’s development, expansion of free school meals, and the provision of crisis support to prevent hunger among the most vulnerable children.
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