Research shows abolishing the two-child limit on benefits would primarily support working families, contradicting recent newspaper claims that the policy represents a ‘budget for benefit street’.
On Wednesday, chancellor Rachel Reeves delivered her second autumn budget, unveiling plans to scrap the two-child limit on benefits. The announcement has since led to claims that the fiscal statement disproportionately favours those do not work.
To give context, some of the headlines published this week include: ‘The Benefits Street Budget‘, ‘A Budget for Benefit Street paid by working people‘, and ‘Badenoch: Reeves delivers Budget for Benefit Street‘.
However, research from the Institute for Public Policy Research (IPPR) indicates ending the two-child limit would mainly assist families already in employment.
According to the findings, 70% of the additional funds generated by removing the limit would go to working households. The think tank argues the policy is aimed at supporting low-income families grappling with rising living costs, rather than fostering dependency.
The IPPR describes the measure as good value for money – for less than a 1% increase in welfare spending, the policy could lift 450,000 children out of poverty. A growing body of evidence also suggests reducing child poverty has long-term benefits, including better health, improved educational outcomes and higher earnings in adulthood.
What’s more, the think tank highlights the impact of the two-child limit on larger families, who have faced the biggest challenges since the policy’s introduction in 2017. Almost one in three larger families experiences food insecurity, compared with 17% of smaller households.
Meanwhile, 44% of large families live in relative poverty, underscoring the policy’s role in deepening inequality.
‘This is not a budget for ‘benefits street’ – it is a budget for working parents who are doing their best in increasingly tough circumstances,’ Professor Ashwin Jumar of IPPR, said. ‘Abolishing the two-child limit is targeted, sensible and fair. It supports families who need it most, reduces child poverty, and saves the public money in the long run.’
Since the budget was announced, dozens of charities and organisations have expressed their opinion on scrapping the two child limit and their reactions can be read below.
Gillie O’Rourke, president of Soroptimist International Great Britain & Ireland
‘For women, the removal of the two-child benefit cap – and the associated rape clause – this week is a significant step forward. It not only supports their children’s wellbeing by ensuring they have the resources they need to thrive, but it also protects their dignity and provides greater long-term financial stability, helping to reduce the pressure that can lead to reliance on food banks or affect mental and emotional health.
‘We hope this move will empower women, giving them increased stability, dignity, and the means to provide for their families, while also creating opportunities to plan for the future with confidence and security. As one of the country’s leading women’s organisations, we are delighted to see the government finally taking this step as we see first-hand the real-life impacts these decisions have on women and girls.’
Hugh Alderwick, director of policy and research at the Health Foundation
‘The government is right to scrap the two-child benefit limit. The UK’s poor performance on several measures of children’s health is linked to our high levels of child poverty and deep inequalities. Removing the two-child limit is a cost-effective way to tackle child poverty quickly, but now needs to be backed up by a broader range of measures to tackle the root causes of poverty in the government’s long-awaited child poverty strategy – including measures to ease the cost of essentials and long-term investment in early years provision.’
Alison Garnham, chief executive of Child Poverty Action Group
‘Scrapping the two-child limit will be transformational for children. This is a much-needed fresh start in our country’s efforts to eradicate child poverty and while there is more to do it gives us strong foundations to build on. Every child deserves the best start in life and with [the recent] decision government has done the right thing.’
Lucy Schonegevel, director of influencing at Action for Children
‘Nearly half (49%) of children living in poverty are in families with more than two children. Scrapping the two-child limit will mean fewer children growing up in cold homes without enough food to eat, warm clothes to wear or a bed to sleep in.’
‘Action for Children sees every day the devastating impact of poverty on children’s lives through our frontline services. Families are being forced to make impossible choices, and we step in to plug the gaps.
‘We look forward to the government’s Child Poverty Strategy, which we hope will go even further to deliver for all children in the coming years.’
Image: Kelly Sikkema/UnSplash
In related news:
£70,000 Better Youth Spaces grant for Blackburn children’s centre
Leave a Reply