Rachel Reeves is determined to ensure that the removal of the two-child benefit limit remains permanent and cannot be reinstated by Reform UK or the Conservative Party. The Chancellor emphasized her commitment to preventing any political party from proposing the reintroduction of this unpopular policy, which was recently abolished and is expected to lift 450,000 children out of poverty.
Initially implemented during the austerity period by former Chancellor George Osborne, the policy restricted Universal Credit to the first two children in a family and was criticized for exacerbating child poverty. Both Nigel Farage’s Reform UK and Kemi Badenoch’s Conservatives have indicated their intention to reinstate the two-child benefit limit in full.
During a reception at No11 Downing Street celebrating the policy’s removal, Rachel Reeves highlighted the importance of ensuring its longevity. She emphasized the need to continue advocating for policies that have a positive impact and enjoy widespread public support to prevent future reversals.
In an interview with the Mirror before the reception, Reeves commended the efforts of campaigners who pushed for the abolition of the two-child benefit limit. She underscored the significant impact the policy change will have, estimating that it will lift 450,000 children out of poverty in this parliamentary term.
Addressing the proposed plans of Reform UK and the Tories, Reeves criticized the potential consequences of reinstating the policy, warning that it would push hundreds of thousands of children back into poverty. She emphasized the importance of safeguarding the progress made and preventing any regression in efforts to combat child poverty.
The contentious issue of the two-child benefit limit had previously caused divisions within the Labour Party, leading to the suspension of seven Labour MPs for opposing the policy. Reeves defended the timing of the policy’s abolition, stating that the government had always been committed to reducing child poverty and had implemented various measures to achieve this goal.
Furthermore, Reeves explained that careful consideration was given to funding sources when announcing policy changes. She highlighted the introduction of new taxes on online betting and gaming as a means to offset the costs of eliminating the two-child limit in Universal Credit. This financial strategy aimed to ensure a sustainable approach to policy reforms.
