Leicester councillors call for end to two-child benefit cap

The government has been urged by Labour councillors in Leicester to scrap the two-child benefit cap.

Labour-controlled Leicester City Council passed a motion stating that the child poverty rate in the area is above the national average.

Councillor Sue Waddington, who put forward the motion, believes removing the two-child benefit cap would help to address this problem, as “the most significant poverty increase had been in families with three or more children”.

The council will now write to the prime minister and chancellor to express its view.

What is the two-child benefit cap?

The two-child cap stops parents from claiming child tax credit or universal credit for more than two children, and currently affects around 1.5m children across the UK.

According to the End Child Poverty Coalition, ending the two-child cap would immediately lift 250,000 young people out of poverty.

The New Economics Foundation, meanwhile, believes scrapping the policy could save the UK £3.2bn a year by the end of the current parliament, which it said would help both families and the wider economy.

Council split over motion

Although a majority on Leicester City Council backed the motion, some opposed it as they thought sending a letter would be futile.

Mick Gregg of the Green Party, for instance, questioned why Labour members of the council were proposing the motion when they knew “the party won’t do this”.

Patrick Kitterick, another Green Party councillor, added that since the Labour group had just agreed to reduce council tax support for impoverished households in Leicester, he couldn’t understand why they were making this call.

Government rules out two-child benefit cap u-turn

Despite pressure from various groups and campaigners, the government has so far said it won’t remove the two-child benefit cap.

Instead, it has put forward other policies which it hopes will address the issue of child poverty, including: 

• creating free breakfast clubs in every primary school
• cutting school uniform costs
• reforming the rental system

Do you need help?

If the two-child benefit cap is putting your household under pressure, then help is available.

We offer free and impartial money advice and can help with budgeting, benefits or debt solutions (some debt solutions are free, while others have a fee).