Sir Keir Starmer has confirmed a Department for Work and Pensions (DWP) rule change that is expected to lift 450,000 children out of poverty, just weeks before he steps down as Prime Minister. The Labour leader will leave Number 10 Downing Street in mid-July after a two-year premiership marked by a disastrous plunge in the polls.
Removal of the Two-Child Benefit Limit
Among the most noteworthy policies Starmer pushed through was the historic removal of the two-child benefit limit back in April. From April, Labour confirmed it would remove the two-child limit so that families can receive the child element of Universal Credit for all children regardless of family size.
It is estimated that there will be 450,000 fewer children in relative low income after housing costs in the final year of parliament as a result of removing the two-child limit, compared to baseline projections. Additionally, two million children will live in households that see an increase in income as a result of the removal of the two-child limit within Universal Credit in the final year of parliament.
Starmer's Statement on the Policy
At the time of the shake-up, Starmer said: "Next week the two-child limit will be scrapped, lifting 450,000 children out of poverty - the vast majority from working households. And next week, the biggest strengthening of workers’ rights in a generation will become law - a huge boost to the economic security of working people."
He added: "Now, some people may say, this isn’t new, this was already planned. To which I say - yes. That is my point. Everything I’ve done in politics, certainly since the Ukraine War in 2022 is a response to this new and dangerous world. We campaigned for a windfall tax on oil and gas companies which we extended. We focused on the cost of living, and we acted at the Budget."
Impact and Legacy
The policy change is expected to significantly reduce child poverty, with 450,000 children lifted out of relative low income. The removal of the two-child limit affects families receiving Universal Credit, allowing them to claim child element for all children regardless of family size. This move is part of Starmer's broader efforts to address the cost of living crisis, which he described as a response to the new and dangerous world following the Ukraine War.
Starmer's premiership, however, has been overshadowed by a disastrous plunge in the polls, leading to his decision to quit as Prime Minister. His policies and skillset are now being re-examined as he prepares to leave office.
