The government faces challenges in welfare spending decisions due to its recent U-turn on welfare reforms. Education Secretary Bridget Phillipson highlighted that the two-child benefit cap remains under review, emphasizing the cost implications of removing it. Labour MPs have prompted significant changes to a welfare package initially expected to save £5 billion annually by 2030. This shift has created pressure on the Chancellor ahead of the upcoming autumn Budget. The government aims to address child poverty by exploring various support mechanisms while managing the implications of recent decisions.
"The decisions that have been taken in the last week do make decisions, future decisions harder."
"Removing the cap would come at a cost and insisted the government was supporting families with the cost of living in other ways."
"Ministers were looking at every lever to lift children out of poverty."
"The rebellion of Labour MPs forced the government to significantly water down a package of welfare reforms that would have saved 5bn a year by 2030."
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