Landmark Move to Tackle Child Poverty
In a significant shift in social policy, Chancellor Rachel Reeves has announced the abolition of the controversial two-child benefit cap as a central part of her Autumn Budget. This decision marks a major victory for anti-poverty campaigners and represents one of the most substantial spending commitments unveiled.
The policy, which was originally introduced by the Conservative government in 2017, restricted child tax credit and universal credit payments to the first two children in most households. Its removal is a core pledge that the Labour government has now delivered on.
Financial Impact and Projected Outcomes
According to a leaked report from the Government's independent spending watchdog, the Office for Budget Responsibility (OBR), scrapping the cap will come with a significant price tag. The move is projected to cost approximately £3 billion by the end of the current Parliament in 2029-30.
However, this financial outlay is balanced against a profound social benefit. The OBR also estimates that this single policy change will result in an estimated reduction of 450,000 children living in poverty by the 2029/30 financial year.
Widespread Acclaim from Charities and Campaigners
The announcement has been met with widespread approval from child poverty organisations. Helen Barnard, director of policy at the Trussell Trust foodbank network, hailed the decision as a "bold step which will protect hundreds of thousands of children from growing up facing hunger and hardship".
She added that the Chancellor had "listened to the families and foodbanks across the UK who have been imploring her to act." Unicef UK also welcomed the move, calling it a "major, necessary decision to tackle record levels of child poverty in the UK," and stating that "no child should be punished for the number of siblings they have."
The Chancellor and Prime Minister Sir Keir Starmer had both strongly hinted in the lead-up to the budget that the cap's days were numbered, following intense pressure from within their own party and from advocacy groups. The OBR document confirmed the policy will be officially removed from Universal Credit in April 2026.
