The UK government is under increasing pressure to scrap the two-child benefit cap, a policy that critics argue has significantly contributed to rising child poverty. Implemented in 2017 by the Conservative government, this cap limits the number of children per family eligible for welfare benefits. According to the Institute for Fiscal Studies, reversing this policy could alleviate three-quarters of the increase in child poverty observed during the previous administration, but it would also cost British taxpayers £2.5 billion ($3.3 billion) annually.
Despite the Labour government's landslide victory in July, it has refrained from overturning the cap, citing budgetary constraints. This decision has led to internal dissent, resulting in the suspension of seven lawmakers who voted against the government’s stance on the issue.
The implications of maintaining the cap are profound, as rising child poverty could have long-term effects on the UK’s social fabric and economic stability. The government's reluctance to act may spark further public outcry and political challenges in the coming months.