Child poverty ‘will rise unless two-child benefit cap is scrapped’

Child poverty will continue to increase unless the government scraps the two-child benefit cap, a thinktank has warned.

According to the Resolution Foundation, government measures to boost employment and reduce housing costs could lift 130,000 children out of poverty.

However, it said this alone would not be enough to reduce child poverty rates during the current parliament.

Instead, the thinktank believes ending the two-child benefit cap would have a “far bigger impact”, and potentially lift 500,000 children out of poverty by the time of the next election.

Under the current system, parents can only claim child tax credit or universal credit for a maximum of two children per household.

Government ‘must be ambitious’

Adam Corlett, principal economist at the Resolution Foundation, said the government is right to take steps to tackle child poverty.

But he stated that a “credible new strategy will need more than warm words”.

“A government that is serious about reducing child poverty will need to undo some of the policies announced by previous governments, such as scrapping the two-child limit,” he commented.

The Resolution Foundation has also suggested:

•    extending free school meals to all families getting universal credit
•    restoring and boosting the family element of universal credit
•    linking local housing allowance to local rents

Mr Corlett argued that a more “ambitious strategy” could help around 900,000 children out of poverty by the end of the decade.

“While the cost of this action may seem daunting, the cost of inaction is far greater and could leave the government with an embarrassing record of rising child poverty,” he said.

Do you need money help?

If you’re struggling to make ends meet because of the two-child benefit cap, it might be time to ask for support.

We can help you get back on track by:

•    creating a realistic budget
•    checking you’re getting all the benefits you’re entitled to
•    talking you through some debt solutions that might be suitable for you

We give confidential, impartial advice online or you can give us a ring.

There’s lots of useful information on our website too.