In a bid to tackle rising child poverty, UK ministers are exploring options to exempt parents of children under five from the two-child benefit limit. This move aims to alleviate the impact of the policy without removing it entirely, which would cost £3.6 billion. The decision comes as Labour faces criticism for not doing enough to address child poverty.
Quick Summary
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UK ministers consider exempting parents of under-fives from the two-child benefit limit to reduce child poverty.
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The policy was introduced in 2017. New proposals are expected this spring.
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“As the government prepares its child poverty strategy, they must focus relentlessly on lifting babies and toddlers out of poverty,” said Ben Cooper, Fabian Society.
Background
The two-child benefit limit was introduced by the Conservatives in 2017 as part of universal credit and child tax credit policies. This limit has been criticized for exacerbating child poverty, particularly affecting large families.
Impact
The policy has significant implications for families with multiple children, leading to increased financial strain. An analysis by the Fabian Society reveals that over a third of children under five in England and Wales live in poverty, with more than a million at risk of having their life chances harmed.
Expert Opinions
Ben Cooper from the Fabian Society emphasized the need to support young children, stating, “The government must show voters they can deliver change and turn the tide on child poverty in the early years.” Adam Corlett from the Resolution Foundation suggested that scrapping the two-child limit could lift 500,000 children out of poverty, though at a cost of £4.5 billion.
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The Fabian Society and Resolution Foundation have provided critical analyses on child poverty.
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According to the Resolution Foundation, removing the cap could significantly reduce child poverty, but the Treasury must approve any changes.
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“Everything is on the table. The important thing is to have child poverty falling by the end of the parliament,” said a source briefed on the discussions.
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The Resolution Foundation warns that current welfare plans could increase child poverty to 33% by 2030.
FAQs
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Q: What is the two-child benefit limit?
A: It restricts child benefits to the first two children in a family. -
Q: Why is the government considering exemptions?
A: To reduce child poverty without fully removing the limit.
Conclusion
As the UK government prepares to unveil its latest strategies to combat child poverty this spring, the potential exemption of parents with children under five from the two-child benefit limit is gaining attention.
This move is part of a broader effort to mitigate the policy’s impact without abolishing it entirely, a decision that would require significant financial investment. The Treasury’s approval will be crucial for any changes, as officials balance the need to reduce poverty with fiscal constraints.
Meanwhile, critics argue that more comprehensive reforms are needed to effectively tackle child poverty. The upcoming announcements will be closely watched, as they could mark a pivotal moment in the government’s approach to supporting vulnerable families.
