Labour Plans Partial Two-Child Benefit Cap Lift Amid Child Poverty Warnings

The Labour government plans to increase benefit spending and partially lift the two-child benefit cap, but faces pressure from think tanks and party members to scrap the cap entirely to effectively reduce child poverty. The Resolution Foundation has warned that half measures, such as a tapered cap or raising the limit to three children, will not prevent child poverty rates from rising to historic highs, potentially affecting 4.8 million children by 2029-30. The think tank estimates that fully abolishing the cap could lift 330,000 children out of poverty immediately and prevent a further 150,000 from falling into poverty by 2029-30. Despite concerns about the £3.5 billion cost and budget constraints, advocates including former Prime Minister Gordon Brown and newly elected Labour deputy leader Lucy Powell support full repeal. The government has abandoned planned cuts to Personal Independence Payment (PIP) and is conducting a review aimed at ensuring the system's sustainability. Overall, the call for decisive action on the two-child benefit cap is framed as essential to fulfilling Labour's child poverty reduction commitments and avoiding worsening social hardship.