Overview

• The two-child benefit cap, introduced in 2017, limits tax credit and Universal Credit claims for third and subsequent children, impacting 1.6 million families and contributing to record child poverty levels.
• Labour is reportedly exploring a three-child cap or tapered payments as compromise measures, though no final decision has been made, delaying the overdue child poverty strategy.
• Charities, including Save the Children and the Child Poverty Action Group, have intensified calls for the cap's removal, citing public support and its effectiveness in reducing poverty.
• Polling indicates that 73% of voters believe all children deserve government support, with strong backing for prioritizing child poverty reduction even among swing voters considering other parties.
• Keir Starmer faces significant internal rebellion, with over 100 Labour MPs opposing welfare Bill cuts and urging the government to fully scrap the controversial cap.