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The Reaction to Lifting Kids Out of Poverty Says a Lot About This Country

The government expects to reduce child poverty by 450,000 nationally and 70,000 in the North East by lifting the two-child benefit cap.

  • Yesterday , Chancellor Rachel Reeves lifted the two‑child benefit cap in the Budget, with the government saying this will reduce child poverty by 450,000 nationally and cost about £3 billion, according to the Office for Budget Responsibility.
  • The two‑child benefit cap, introduced in 2017 by the Conservatives, limited Universal Credit and Child Tax Credit to two children, while MPs, charities, and the North East Child Poverty Commission urged ministers to abolish it.
  • OBR analysis shows the change will increase UC awards for 560,000 families averaging £5,310 per year, and the Child Poverty Action Group says it will lift 350,000 children out of poverty.
  • From April next year, families can claim Universal Credit child payments for all children, and Beth Farhat said ending the limit will boost living standards and ease pressure on services.
  • Although the cap's removal eased pressure inside the party, critics including Andy McDonald and Mr Hussain said the Budget falls short, while Conservative Party figures vowed to reinstate the limit if returned to power.
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15 Articles

Bristol PostBristol Post
+2 Reposted by 2 other sources
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Sir Keir Starmer says it's 'an investment' as thousands get benefits boost

560,000 will see a Universal Credit increase with more getting extra money from HMRC

·Bristol, United Kingdom
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The Northern Echo broke the news in County Durham, United Kingdom on Wednesday, November 26, 2025.
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