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Welfare U-turn makes spending decisions harder, minister says

Welfare U-turn makes spending decisions harder, minister says

Summary

The Education Secretary explained that the government's recent reversal on welfare changes makes it harder to decide on future spending. Although there is interest in ending the two-child benefit cap, the government must consider the financial impact of such a move.

Key Facts

  • The government reversed a decision on welfare changes after pressure from Labour MPs.
  • The original welfare changes aimed to save £5 billion a year by 2030.
  • The Education Secretary said removing the two-child benefit cap would be costly.
  • The two-child benefit cap limits benefits to help families with no more than two children.
  • This cap affects children born after April 2017.
  • Decisions about lifting the cap are uncertain due to financial concerns.
  • The reversal of the welfare changes delays or possibly cancels the planned savings.
  • The Chancellor faces added pressure ahead of the upcoming autumn Budget.

Source Information