Labour Scraps Two-Child Benefit Cap: A First Step in Tackling Child Poverty
Labour abolishes two-child limit on benefits

The new Labour government has taken a decisive and widely welcomed step by abolishing the controversial two-child limit on benefits, a policy long criticised for pushing families into deeper poverty. This move, announced in the King's Speech, marks a significant shift in social security policy and delivers on a key manifesto pledge.

The End of a Controversial Policy

Introduced by the Conservative government in 2017, the two-child limit restricted child tax credit and universal credit to the first two children in a family, with few exceptions. The policy was explicitly designed to encourage "behavioural change" and cut welfare spending. However, its impact was severe and immediate.

According to analysis, the policy was directly responsible for pushing over 250,000 children into poverty. It disproportionately affected larger families, with campaigners and charities arguing it punished children for their birth order and created a "first-class and second-class" distinction among siblings. The Labour Party, now in power, has long opposed the measure, labelling it both cruel and ineffective.

A Foundation for Further Action

While the abolition of the limit is a major victory for anti-poverty campaigners, experts are clear that this single action is not enough to meet the government's own ambitious targets. The Labour manifesto committed to developing a strategy to reduce child poverty, with the ultimate goal of eradicating it entirely.

Scrapping the two-child limit is seen as the essential first brick in that foundation. It removes a structural barrier that was actively increasing hardship. However, with over four million children still living in poverty across the UK, sustained and comprehensive measures are required. Think tanks and advocacy groups are now urging ministers to turn their attention to other parts of the social security system that require reform to provide adequate support for all families.

The Road Ahead: From Removal to Reconstruction

The challenge now facing the government is to build upon this initial success. Simply removing a punitive policy does not automatically lift families out of financial difficulty. Attention must shift to the adequacy of overall benefit levels, the cost of living crisis, and support for housing and childcare.

The editorial view of the source material argues that while this move is morally right and politically significant, it must be the start of a broader programme. The government's promised child poverty strategy needs to be bold, well-funded, and treat the issue with the urgency it demands. The abolition of the two-child limit has corrected a historic wrong, but the larger mission of ending child poverty in the UK has only just begun.

Public and political focus will now be on the Chancellor's upcoming budget and future policy announcements to see what further tools the government will deploy in this critical fight.