Rachel Reeves has pledged to vigorously oppose any attempt to reinstate the two-child benefit limit, ensuring it remains permanently abolished and safeguarded from potential revival by Reform UK or the Conservative Party.
The Chancellor emphasized her commitment to preventing any political party from proposing the reintroduction of the controversial policy, citing its unpopularity among voters. Following the recent elimination of the two-child benefit limit, an estimated 450,000 children are expected to be lifted out of poverty.
Initially introduced during the era of austerity by former Chancellor George Osborne, the policy restricted Universal Credit to the first two children in a family, leading to criticism for exacerbating child poverty. Despite promises from both Nigel Farage’s Reform UK and Kemi Badenoch’s Tories to reinstate the measure entirely, Reeves remains resolute in her opposition.
Speaking at a reception held at No11 Downing Street to celebrate the policy’s removal, Reeves stressed the importance of ensuring its permanence under a Labour government. She highlighted the ongoing need to defend progressive policies and secure broader public support to prevent any future attempts to reverse the positive impact achieved.
Acknowledging the efforts of campaigners who advocated for the abolition of the policy, Reeves expressed confidence in the significant impact it would have on lifting children out of poverty. She warned against the potential repercussions of reinstating the two-child benefit limit, emphasizing the detrimental effects it would have on vulnerable families.
The contentious issue of the two-child benefit limit had previously caused divisions within the Labour Party, leading to the suspension of seven MPs for rebelling against the policy. When questioned about the timing of the decision to scrap the policy, Reeves reiterated the party’s longstanding commitment to reducing child poverty and emphasized the strategic financial planning that enabled its abolition.
Reeves underscored the government’s proactive approach in identifying alternative revenue sources, such as taxing gambling companies, to fund the removal of the two-child limit in Universal Credit. This strategic financial planning ensured that the policy change could be implemented effectively without compromising other essential services or welfare programs.
