Reeves to Lift Two-Child Benefit Cap, Options Weighed

Chancellor Rachel Reeves plans to lift the two‑child benefit cap in the Nov. 26 Budget, though Treasury officials are exploring replacement options — raising the limit to three or four children, tapering payments for additional children, or extending extra payments only to working parents on Universal Credit — changes that would affect nearly 470,000 households and about 1.7 million children. Fully scrapping the cap could cost roughly £3–3.5bn a year and risk large bills for very large families, prompting consideration of partial or tapered approaches. The move follows pressure from Labour MPs, the child poverty taskforce and campaigners and was signalled by Prime Minister Keir Starmer and other ministers. Reeves says any change will be set out with funding plans and has resisted announcing policies without fiscal detail. Advocates including Gordon Brown and the IPPR have proposed funding via higher gambling taxes, a route Reeves said she is open to. Failure to fully remove the cap could prompt backlash from left‑wing Labour MPs and campaigners.