Cross-party commission urges UK government to scrap two-child benefit limit

"A cross-party commission including former welfare ministers is urging the government to scrap the two-child benefit limit as part of an ambitious once in a generation plan to lift millions of people out of poverty. The Poverty Strategy Commission said billions of pounds of investment including a boost to the rate of universal credit was needed to reverse record levels of poverty in the UK, and tackle longstanding failures over rising hardship and destitution."

"The commission said its wide-ranging proposals would lift 4.2 million people out of poverty, including 2.2 million people stranded in deep poverty defined as household income at least 50% below the official poverty line and equivalent to 11,013 a year for a single parent with two children. Labour ministers such as the welfare minister, Sir Stephen Timms, the energy minister, Miatta Fahnbulleh, and policy adviser Graeme Cooke were key members of the commission before joining the government."

"The commission said abolishing the two-child benefit limit, which denies 3,500 a year in welfare payments to third and subsequent children born to families on universal credit since 2017, was central to reducing poverty and increasing the life chances of the poorest youngsters. The government has resisted scrapping the two-child limit on cost grounds estimated at 3bn a year despite widespread opposition from Labour backbenchers, and anti-poverty campaigners."

A cross-party commission calls for scrapping the two-child benefit limit and increasing universal credit funding as part of a long-term plan to reduce poverty. The commission recommends billions of pounds of investment to reverse record poverty levels and address rising hardship and destitution. Its proposals estimate lifting 4.2 million people out of poverty, including 2.2 million in deep poverty defined as income at least 50% below the poverty line. Abolishing the two-child limit is presented as central to reducing childhood poverty and improving life chances, while the government cites an estimated annual cost of £3bn.

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