Child poverty strongly linked to two-child benefit cap

A report conducted by Loughborough University for the End Child Poverty Coalition ahead of the general election revealed that two-thirds (66%) of constituencies have at least a quarter of children living in poverty.

The North East has the highest levels, with 88.9% of constituencies having a child poverty rate of over 25%. With Middlesborough and Thornaby East being most affected. London and the North West also recorded high rates.

Across the UK over 30% of children live in poverty – this equates to nine children in every classroom, which highlights just how big the problem is.

The data also shows that there is a strong link between areas with a high child poverty rate and the number of families with more than two children.

The End Child Poverty Coalition is therefore urging all political parties to commit to removing the two-child limit to benefit payments and the benefit cap in their election manifestos.

Coalition chair Joseph Howes said: 'The data is undeniable – too many children are trapped in a cycle of deprivation that affects their health, education, and future prospects. It's time to dismantle these barriers, and the elections will provide a critical platform for committing to systemic changes to support families and give every child the chance to thrive.'

The two-child benefit cap explained

The two-child benefit cap is a policy that prevents parents from claiming child tax credit or universal credit for any third or subsequent child born after April 2017. This was introduced by the former chancellor George Osborne as part of his austerity drive to encourage parents of larger families to find a job or work more hours.

The impact of the cap

• The policy has affected an estimated 1.5 million children.
• Research has shown that the policy has impoverished families rather than increasing employment.
• A recent study found that as many as one in four children in some of England and Wales's poorest constituencies are in families left at least £3,000 poorer by the policy.
• In the most ethnically diverse communities, 14% of children were hit by the cap.

The cost of scrapping the cap

Abolishing the cap would cost £1.3bn a year, but it would lift 250,000 children out of poverty, and a further 850,000 would be in less deep poverty, according to campaigners. The End Child Poverty Coalition says removing the cap would be the most cost-effective way of reducing the number of children living in poverty.

Political parties' stance on the cap

Both the Conservatives and Labour have said they will keep the two-child cap in place, despite more than 50 organisations calling for it to be abolished.