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The UK government has refused to scrap the two-child benefit cap, despite mounting pressure from Labour and concerns about child poverty. Will this contentious policy be modified or left unchanged?
The two-child benefit cap has been a contentious policy in the UK, with many families struggling to make ends meet due to its restrictive nature. The cap prevents most families from claiming means-tested benefits for any third or additional children born after April 2017.
The two-child benefit cap is a UK government policy introduced in 2017, limiting child-related benefits for families with three or more children.
The cap applies to Working Tax Credit and Child Tax Credit claimants, capping the total amount of support at £1,200 per year for each additional child beyond the second child.
This means that families with three or more children may receive less government assistance for childcare costs.
As of 2022, over 160,000 families are affected by this policy.
Challenges Facing the Government
Deputy Prime Minister Angela Rayner has refused to confirm whether the government is planning to scrap the two-child benefit cap, citing the need for careful consideration of other measures aimed at tackling child poverty. The establishment of a Child Poverty Taskforce, which had been considering the cap’s removal among other options, suggests that the government is taking a comprehensive approach to addressing this issue.
Angela Rayner is a British politician serving as the Deputy Leader of the Labour Party since 2020.
Born on March 28, 1987, in Stockport, England, she rose to prominence for her advocacy on education and workers' rights.
Rayner has been a Member of Parliament (MP) for Ashton-under-Lyne since 2015 and has held various shadow cabinet positions, including Shadow Education Secretary and Shadow Chancellor of the Duchy of Lancaster.
Recent Developments
The delay in publishing the government’s child poverty strategy has sparked concerns about the policy’s future. A leaked memo from Rayner’s department appears to urge the chancellor to ‘claw back’ child benefit payments from wealthier families, alongside other suggestions. However, Rayner denied being behind the leak and emphasized her commitment to tackling child poverty.
Leadership and Cabinet Dynamics
Questions surrounding the two-child benefit cap have also raised speculations about leadership within the Labour Party. While Sir Keir Starmer has reportedly backed abolishing the cap, the issue remains contentious. Nigel Farage‘s comments on reinstating winter fuel payments and scrapping the two-child benefit cap have added to the debate.
Keir Starmer is a British politician who serves as the Leader of the Opposition and the leader of the Labour Party.
He was born on September 2, 1962, in Southwark, London.
A former human rights lawyer, Starmer became an MP in 2015 and held various positions within the party before becoming its leader in 2020.
He has been a vocal critic of Brexit and has called for 'a second referendum.'
Conclusion
The future of the two-child benefit cap remains uncertain, with the government refusing to confirm its plans. The establishment of a Child Poverty Taskforce suggests that tackling child poverty is a priority for the government. As the country waits for the publication of the child poverty strategy in the autumn, it remains to be seen whether the two-child benefit cap will be scrapped or modified.
