Labour to Scrap Two-Child Benefit Cap in Major DWP Overhaul
Labour to scrap two-child benefit limit

In a significant shift for the UK's welfare system, Chancellor Rachel Reeves has announced plans to remove the controversial two-child limit on benefits, a policy long criticised for pushing children into poverty.

Ending the 'Penalty' for Larger Families

Speaking to Matt Chorley on BBC Radio 5 Live, Rachel Reeves stated it was unacceptable that children in bigger families were being penalised through no fault of their own. The Chancellor confirmed that the Labour government would take decisive action to tackle child poverty, drawing a direct parallel with the record of the previous Labour administration.

The two-child limit, introduced by the Conservative government in 2017, restricts child tax credit and Universal Credit support to the first two children in a family. This means parents cannot claim standard benefits for any third or subsequent child born after April 2017.

Widespread Support for Abolishing the Policy

The move has been welcomed by poverty campaigners. Alison Garnham, chief executive of the Child Poverty Action Group, labelled the policy the biggest driver of rising child poverty in the UK. She argued that abolishing this 'cruel' limit is the right thing to do, asserting that all children deserve a good childhood and that its removal would give millions a better start in life.

The commitment appears to be a core personal priority for the Prime Minister. A source from Whitehall suggested that Sir Keir Starmer is adamant about reducing child poverty and intends for his government's achievements in this area to surpass those of the Blair era. The source indicated that driving down child poverty is a long-standing personal mission for the Prime Minister.

A New Direction for Family Support

This proposed change signals a major philosophical shift in the government's approach to social security. By scrapping the two-child limit, the Labour government aims to dismantle a key pillar of the previous welfare reform agenda, which it argues unfairly punished children for the size of their family.

The announcement represents one of the government's first concrete steps towards fulfilling its manifesto commitment to tackle child poverty head-on, marking a clear departure from the policies of the last eight years.