Cross-party call to end UK two-child benefit limit

Cross-party call to end UK two-child benefit limit
Credit: Gareth Fuller/PA

UK (Parliament Politics Magazine) – The Poverty Strategy Commission urged the UK to abolish the two-child benefit limit, saying it would lift millions out of poverty and ease hardship.

As reported by The Guardian, former welfare ministers on a cross-party commission are urging the government to abolish the two-child benefit cap to tackle UK poverty.

Poverty Strategy Commission’s stance on the UK poverty crisis

According to the Poverty Strategy Commission, reversing record poverty will require major investment and an increase in universal credit rates. It warned that urgent action is needed to tackle rising hardship and address long-standing failures in the welfare system.

The commission’s report sets out a major challenge for the government ahead of its child poverty strategy launch. There are concerns that Treasury limits could weaken measures requiring higher benefit spending.

The cross-party group estimated its reforms could lift 4.2 million people out of poverty. This includes 2.2 million in “deep poverty,” defined as income at least 50% below the official poverty line.

The independent commission was launched three years ago to build cross-party agreement on tackling hardship. Its findings set out a credible policy plan to address what it calls the “societal failure” of poverty.

Poverty Commission’s views on the two-child benefit cap

The Poverty Commission said scrapping the two-child benefit cap, which withholds £3,500 a year from larger families on universal credit, is essential to reducing poverty. It added that ending the policy would improve the prospects of the UK’s poorest children.

The government has resisted ending the two-child cap, citing its £3bn yearly cost. Campaigners said the policy harms 1.7 million children, while Labour MPs’ calls to scrap it remain ignored.

According to the commission, abolishing the two-child benefit limit should be built into a revamped “basic minimum” welfare system, which could require an additional £12.5bn a year. 

It outlined a “social contract” promising protection from poverty for benefit claimants who agree to conditions such as securing work, taking longer hours, or moving into higher-paid roles.

In its final report, set for release on Thursday, the commission condemned the government’s failed attempt to cut £5bn from disability benefits. The report said the scrapped plans would have left 250,000 disabled people in poverty. It warned that the move exposed the policy’s inability to tackle hardship.

The commission estimated that nearly 36% of children are living in poverty. It said its planned investment in housing and childcare would bring a historic fall in deprivation.

The cross-party commission gave no fresh costings for its proposals, though an interim report set the annual price at £36bn. It argued that poverty reduction should not be delayed by fiscal caution, stressing that investment would drive long-term growth.

Who were the Labour figures behind the Poverty Commission?

  • Sir Stephen Timms – Welfare Minister
  • Miatta Fahnbulleh – Energy Minister
  • Graeme Cooke – Policy Adviser
  • Lord Timpson – Prisons Minister and Commission Adviser

Which political figures from the right sit on the commission?

  • Philippa Stroud – Tory peer, former adviser to Iain Duncan Smith
  • Stephen Crabb – Former Tory Welfare Secretary
  • David Laws – Former Liberal Democrat Schools Minister (2010–2015 coalition government)

Philippa Stroud’s stance on disability benefit cuts

Philippa Stroud said the government’s disability benefit reforms failed because ministers lacked a clear explanation of their plans. She argued the absence of a strong narrative doomed the policy.

Ms Stroud added,

“If you have not got a narrative on poverty, then you run into the kinds of problems they [ministers] did on disability benefit cuts.”

Helen Barnard’s views on poverty and food banks

Helen Barnard, a commission member and director of policy at the food bank charity Trussell, stated,

“We are seeing more people trapped in severe and sustained poverty, turning to food banks because they have nowhere else to go. This hardship damages individuals, families, communities and the UK’s economy and public services.”

What did the Government say about tackling child poverty?

A government spokesperson stated,

“This government is determined to drive down poverty and ensure that every child gets the best start in life. We are overhauling jobcentres and reforming the broken welfare system to support people into good, secure jobs, while always protecting those who need it most.”

They added,

“In addition to extending free school meals and ensuring the poorest children don’t go hungry in the holidays through a new £1bn crisis support package, our child poverty taskforce will publish an ambitious strategy to tackle the structural and root causes of child poverty across the country.”

Alison Garnham’s views on child poverty action

Alison Garnham, the chief executive of CPAG, said,

“Almost a year after the election, the government’s manifesto commitment to tackle child poverty remains hugely popular.”

He added,

“A child poverty strategy that increases living standards and improves life chances will make the crucial difference to children, their families and the country alike. The public stands in support of the 4.5 million children in the UK living in poverty, and now it’s time for the government to act – starting by scrapping the two-child limit.”

What did Ed Dorrell say about child poverty and politics?

Ed Dorrell, a partner at Public First, stated,

“Potential switchers from Labour to Reform, the Greens and the Lib Dems are united in wanting to end child poverty, in thinking the government has a role to play in this and in thinking that reversing benefit cuts would help.”

He added,

“If Labour wants to win their lost voters back, making progress on child poverty is something to prioritise, not play down.”

Key facts about the two-child benefit cap in the UK

The two-child limit cuts £3,455 per extra child, reducing family income and driving poverty. It currently affects 1.7 million children, set to rise to 2.8 million. 

Larger families, single parents, and minority households are the hardest hit. Critics say it deepens poverty and urge abolition as a cost-effective fix.