MPs to Vote on Ending Two-Child Benefit Cap Following Reeves’ Budget Pledge

MPs to Vote on Ending Two-Child Benefit Cap Following Reeves’ Budget Pledge

Members of Parliament (MPs) are set to vote on legislation that aims to lift the controversial two-child benefit cap. This change in policy follows a commitment made by Chancellor Rachel Reeves during the autumn budget last year.

Key Details of the Legislation

  • Initial Vote: MPs will cast their first votes on the bill aimed at removing the two-child benefit cap.
  • Chancellor’s Commitment: Rachel Reeves unveiled this policy in the 2022 autumn budget.
  • Impact on Child Poverty: The Joseph Rowntree Foundation (JRF) estimates that around 400,000 fewer children will live in poverty starting this April.

Despite this positive outlook, the JRF warns that without additional measures, the progress against child poverty may stall. They noted, “Without further changes, relative poverty levels remain stuck at a high level after April 2026.”

Opposition from Conservatives and Call to Action

The Conservative Party plans to oppose the Universal Credit (Removal of Two Child Limit) Bill during its second reading on Tuesday. In contrast, a coalition of children’s doctors, teachers, and anti-poverty groups is urging MPs to support the legislation.

Support from Various Organizations

A joint statement from 63 organizations, including the Child Poverty Action Group and Citizens Advice, condemned the two-child cap. They described it as “an awful experiment that hurt children,” emphasizing its role in increasing child poverty.

Emotional Impact of Poverty

The statement highlighted the devastating consequences of poverty on children’s lives, which include lack of essential resources, poor living conditions, and educational challenges. “Today marks the moment when we start to turn things around for the next generation,” the group stated, commending the government for choosing to remove the cap.

Political Reactions and Financial Implications

Labour backbenchers, some of whom were suspended for opposing party lines, have called for the removal of this cap. Meanwhile, shadow work and pensions secretary Helen Whately criticized Labour’s proposed spending, claiming it disproportionately benefits jobless households.

“The move will cost £3 billion a year by 2029/30,” according to the Office for Budget Responsibility (OBR). Work and Pensions Secretary Pat McFadden contends that lifting the cap is a necessary investment in the country’s future, as the policy was originally introduced by the Conservative government in 2017.

Next Steps

The first debate on this bill is scheduled for Tuesday in the House of Commons. Following this discussion, it will undergo further scrutiny by MPs and peers before potentially becoming law.