Ministers have been cautioned that completely eliminating the two-child limit is crucial in the efforts to decrease alarming child poverty rates before the upcoming election. The Resolution Foundation has projected that without immediate action, child poverty rates could soar to a record 34%, affecting approximately 4.8 million children by the end of the decade.

Amid discussions between Keir Starmer and Chancellor Rachel Reeves, there is contemplation of either scrapping or diluting the longstanding Tory policy as part of an upcoming review on child poverty. The controversial policy, which restricts Child Tax Credits and Universal Credit to the first two children in a family, has been criticized by charities for perpetuating child poverty.

The Resolution Foundation has cautioned that only a complete repeal of the two-child limit would be effective in reducing child poverty. They argue that even transitioning to a three-child limit or reducing benefits for third and subsequent children would still result in higher child poverty rates by the end of the decade.

Alex Clegg from the Resolution Foundation emphasized the urgency, stating that failure to act during this Parliamentary term could lead to a concerning rise in child poverty levels. The most impactful solution, according to Clegg, is to entirely remove the two-child limit on benefits, as any partial measures would not suffice in preventing an increase in child poverty.

In response, a government spokesperson highlighted the commitment to providing every child with a quality start in life. They mentioned the forthcoming publication of an ambitious strategy by the child poverty taskforce to address the underlying causes of child poverty. The government also outlined investments totaling £500 million in children’s development initiatives, including the expansion of Best Start Family Hubs, free school meal extensions, and a new £1 billion crisis support package to alleviate hunger among the most vulnerable children during school holidays.