Rachel Reeves is determined to ensure the permanent abolition of the two-child benefit limit, vowing to resist any attempts by Reform UK or the Conservative Party to reinstate it. The Chancellor emphasized the importance of preventing any political party from reintroducing this unpopular measure, which was recently removed, estimated to lift 450,000 children out of poverty.
Initially implemented during the austerity era by George Osborne, the policy limited Universal Credit to the first two children in a family, contributing to child poverty. Both Nigel Farage’s Reform UK and Kemi Badenoch’s Tories have expressed intentions to fully reinstate the two-child benefit limit.
During a reception at No. 11 Downing Street celebrating the policy’s removal, Rachel Reeves stressed the need to ensure its permanence under a Labour government. She urged continuous advocacy to safeguard the policy and prevent any future government from campaigning to reverse it.
Reeves commended the campaigners who pushed for the policy’s abolition, emphasizing the significant impact on lifting children out of poverty. She criticized Reform UK and the Tories for their plans to potentially plunge 450,000 children back into poverty by reinstating the abolished policy.
The issue of the two-child benefit limit had sparked divisions within Labour, leading to the suspension of seven Labour MPs for rebelling against the government over the policy in the summer of 2024. When questioned about the timing of the policy’s removal, Reeves reiterated the party’s commitment to reducing child poverty and highlighted the financial measures taken to support the policy change.
By implementing new taxes on online gambling and gaming, the government aimed to offset the costs associated with abolishing the two-child limit in Universal Credit. Reeves emphasized the importance of responsible financial planning in policy decisions to ensure sustainable outcomes.