Summary
- The New Economics Foundation (NEF) highlights the wider benefits of scrapping the two-child limit, including savings to public services and increased future earnings potential for young people.
- Retaining the two-child limit and benefit cap could result in nearly half of families with three or more children living in poverty by 2025.
- Scrapping both policies could cost the government £2.5 billion per year initially, but would be offset by significant economic gains over time.
- The NEF urges consideration of long-term forecasted benefits and a broader approach to reducing child poverty for overall economic improvement.