The two-child benefit cap was lifted on Monday, April 6
Need to know
The two-child benefit cap was lifted on Monday, April 6
Prime Minister Keir Starmer during a recent visit to Milton Keynes(Image: Peter Nicholls/Getty Images)
What you need to know about changes to two-child benefit cap:
- Keir Starmer said the Government is “on the side of the British people” as the two-child cap on benefits officially ended on Monday (April 6). The change will see an estimated 450,000 children lifted out of poverty. First introduced by the Conservatives in 2017, the policy restricted child tax credit and universal credit (UC) to the first two children in most households.
- Chancellor Rachel Reeves announced the cap would be lifted on April 6 when she delivered the budget in November, after months of pressure from Labour backbenchers. The Prime Minister said it was one of a number of steps the Government has taken amid an increased focus on cost-of-living pressures caused by the war in Iran.
- Sir Keir said: “No matter the global uncertainty, my Government will always be on the side of the British people in bearing down on the cost of living. I will never lose sight of how restless people are for change, and I am proud that today we are lifting nearly half a million children out of poverty, boosting support for pensioners, and delivering the biggest upgrade to workers’ rights in a generation.”
- He added: “I know families across the country are concerned about the conflict in Iran and what it means for the cost of living. We are working closely with international partners to push for a de-escalation in the Middle East and the re-opening of the Strait of Hormuz. This is the most effective way to ease the pressure on the cost of living. I am clear that our response to the current global situation will define us for a generation, which is why we are taking the right long-term decisions now to ensure we emerge from this as a stronger, more secure nation.”
- As the two-child cap ends, a series of other Government policies aimed at helping people with rising living costs are also coming into force. This includes day one rights to paternity leave, and reforms to statutory sick pay as part of the Employment Rights Act.
- The state pension is also going up, something the Government says will be worth up to £575 a year for a new claimant. Housing benefit and personal independence payments are among the benefits which are also being uprated.
- Writing in the Guardian newspaper, the Prime Minister described the raft of measures as “one of the proudest moments of this Labour Government”. Sir Keir added: “Because it will lift nearly half a million children out of poverty. It means fuller cupboards, less anxiety at the end of the month, and a fairer start in life for children who had no say in the circumstances they were born into. And it tells you something fundamental about this Government – when faced with a choice, we act.”
Read the full story: Keir Starmer shares statement as two-child benefit cap ends today
