UPDATE: |UK government makes decision on two-child benefit cap News

Ministers have been accused of turning their backs on Britain’s poorest families

Ministers have come under fire for turning their backs on the UK’s poorest families after they decided against scrapping the two-child benefit cap, despite stark warnings that child poverty could hit record levels. Behind closed doors, top officials have insisted that the cap will remain, even as charities caution that its continuation could push hundreds of thousands more children below the poverty line.

A government insider told The Guardian: “The cap is popular with key voters, who see it as a matter of fairness.”

However, campaigners against child poverty and frontline charities have labelled the move as a betrayal, potentially dooming a generation to severe deprivation. In a compelling letter to Labour leader Keir Starmer, prominent groups such as Barnardo’s, Save the Children, and Citizens Advice have argued that lifting the two-child limit is the most effective and feasible strategy to combat child poverty.

According to the Child Poverty Action Group, there are already 4.5 million children living in poverty, a figure that is projected to increase to 4.8 million by 2029 without immediate intervention. While Labour MPs have praised initiatives to broaden breakfast clubs and free childcare, they caution that these measures fall short of mitigating the harm inflicted by the benefit cap.

Introduced by the Tories in 2017, the two-child limit means that parents cannot claim child tax credit or universal credit for a third or subsequent child born after April of that year, unless there are exceptional circumstances. The policy has been slammed as cruel and punitive by numerous families, who find themselves in dire straits amidst a cost-of-living crisis—foodbanks are operating at record levels, and parents are often foregoing their own meals to ensure their children are fed.

Labour insiders are reportedly considering ways to mitigate the impact of the policy, including possible exemptions for working families or those with disabled children, although there is hesitation over the substantial cost of £3.6bn that would come with completely abolishing the policy. One mooted middle ground is a “three-child limit”, but critics argue it still fails to address the needs of many.

In a contrasting move, the government is pushing forward with the launch of 750 new breakfast clubs across England this week. These clubs are designed to offer free childcare for the half-hour before school starts and could result in savings of around £450 annually for families.

With the upcoming expansion of free childcare starting from September, there’s a potential for further savings up to £7,500.

Pitched as a support mechanism for hard-pressed families, an aid to education, and as a means to combat hunger, the breakfast clubs will particularly benefit children from the poorest areas, with 67,000 out of an expected 180,000 beneficiaries coming from the most deprived regions. However, for countless households, the modest financial relief afforded by such initiatives can hardly fill the significant economic gap brought about by the two-child cap.

Campaigners have penned a letter to Sir Keir Starmer, urging: “Scrapping the two-child limit is by far the most cost-effective way to reduce child poverty. It would lift 350,000 children out of poverty overnight and result in 700,000 children living in less deep poverty. If it is not scrapped, the stark reality is that child poverty will be significantly higher at the end of this parliament than when the government took office, making this the first time a Labour government would leave such a legacy.”