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Two-child benefit cap to be scrapped from next year

Two-child benefit cap to be scrapped from next year

Summary

The U.K. government will remove the two-child benefit cap starting next April. The cap, which began in 2017, limited welfare benefits to a family's first two children. The change aims to reduce child poverty and is expected to mean 450,000 fewer children in poverty by 2029-2030.

Key Facts

  • The two-child benefit cap will be removed in April.
  • This cap was introduced under the Conservative government in 2017.
  • The cap limited welfare benefits to only the first two children in a family.
  • Chancellor Rachel Reeves announced the change, which will cost £3 billion annually by 2029-2030.
  • The change is expected to reduce the number of children in poverty by 450,000 by 2029-2030.
  • Critics say the policy increase did not significantly change family sizes but did push more children into poverty.
  • The policy change has been praised by Labour MPs and child poverty groups.
  • About 1.6 million children were affected by the cap, with many in working families.
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