Education Secretary Bridget Phillipson has confirmed the government is considering scrapping the controversial two-child benefit cap but warned the move would come at a “significant cost.” The policy, introduced in 2017, restricts means-tested benefits for third or subsequent children, pushing many families into poverty. Phillipson acknowledged the financial challenges of reversing the policy but stressed the “cost of inaction” on child poverty is equally high. A decision is expected in autumn alongside the government’s child poverty strategy, delayed from its original spring release.
Labour faces mounting pressure from its own MPs and campaigners to abolish the cap, particularly after disappointing local election results. While Phillipson stated Labour would not have implemented the policy, she emphasized the need for careful financial planning. Reform UK leader Nigel Farage pledged to remove the cap if elected, calling it a necessary support for low-income families. Meanwhile, Conservative shadow chancellor Mel Stride defended the policy, arguing it encourages financial responsibility.
The Liberal Democrats and Greens have already committed to scrapping the cap in their manifestos. With 1.6 million children affected, experts estimate abolition would cost £3.5bn but lift 470,000 children out of poverty. Phillipson assured that “nothing is off the table,” signaling potential changes ahead.
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