The government’s child poverty strategy is now a major focus. Education Secretary Bridget Phillipson has made a significant suggestion. She indicated the two-child benefit cap could be lifted. This policy change is firmly “on the table” she confirmed. Her comments are the clearest signal yet from a minister.
The two-child limit restricts benefits for larger families. It prevents payments for a third child. Critics have long called it a “spiteful” measure. They argue it pushes children into unnecessary hardship.
Phillipson passionately discussed the issue. She stated fighting poverty brought her into politics. Also, she vowed to fight on this issue daily. She made these remarks during her deputy leadership campaign. The contest has put benefits policy in the spotlight.
Her rival, Lucy Powell, also supports scrapping the cap. Powell called it the single biggest anti-poverty move. She urged the government to clarify its plans. She also criticized recent welfare policy “unforced errors”.
Scrapping the cap carries a significant cost. The Resolution Foundation think tank provided analysis. It estimates the move would cost around £3.5 billion annually. However, it would also have a profound impact. Nearly half a million children would escape poverty.
Prime Minister Keir Starmer has previously supported abolition. He said he would scrap it when finances allow. He has not yet specified a precise timeline. The upcoming autumn Budget is now a key date. Many will watch for an announcement then.
Furthermore, this potential shift is a core part of the child poverty strategy. The government is finalizing its delayed plan. Removing the cap would be its most expensive element.
Therefore, the debate highlights a major government challenge. Ministers must balance compassion with economic credibility. The opposition Conservatives call scrapping the cap financially irresponsible. Reform UK, however, has also pledged to abolish it.
Ultimately, the child poverty strategy demands difficult choices. Phillipson’s comments intensify the pressure for action. The government’s commitment to reducing hardship is now being tested. All eyes are on the Chancellor’s November Budget statement.
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