The two child benefit cap, implemented under Conservative reforms, restricts payments to families with more than two children. Official figures indicate that scrapping this cap could significantly increase annual payments for over 71,000 families, especially larger households. Families with five or more children would gain substantial financial support, with potential earnings exceeding £20,000 annually. Labour MPs are advocating for the cap's removal as a means to promote fairness for children. Chancellor Rachel Reeves faces the financial challenge of finding £3.5 billion to enact this change.
Tens of thousands of families with multiple children could receive thousands of pounds more in annual payments if ministers scrap the two child benefit cap, according to official figures.
Figures released in response to a parliamentary question show 71,580 families with five or more children would benefit from its removal.
Chancellor Rachel Reeves will need to find 3.5bn to fund the move, as Labour MPs are pressing Sir Keir Starmer to deliver on his pledge of fairness by abolishing the cap.
The cap, introduced under Conservative welfare reforms, blocks parents from claiming the child element of Universal Credit worth 292.81 a month for a third or subsequent child born after April 2017.
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