Pressure is mounting to eliminate the controversial Tory policy of the two-child benefit limit, as highlighted by Bridget Phillipson. The Education Secretary, co-chairing a panel focused on addressing child poverty, emphasized the necessity of this mission for the Labour Party. Over 100 MPs have urged Chancellor Rachel Reeves to abolish the cap, preventing parents from claiming child tax credit or universal credit for more than two children.
Phillipson emphasized the need to reconsider the two-child limit, citing its evident impact. A forthcoming strategy from the Government will detail plans to reduce child poverty. A group of 101 Labour MPs has proposed increasing taxes on gambling firms to fund the removal of the cap, a proposal supported by former Prime Minister Gordon Brown.
Research conducted by the Resolution Foundation estimated that eliminating the cap would require £3.5 billion but could lift 470,000 children out of poverty. Phillipson advocated fiercely for initiatives like free school meals and breakfast clubs, deeming them crucial for children’s well-being and future prospects.
Keir Starmer faced early challenges regarding the cap, originally implemented under the Tories. Labour MPs have called for action against the backdrop of soaring profits in the gambling industry, stressing the need to address poverty and ensure fair taxation. They highlighted the strain gambling-related issues place on public services, costing the Exchequer over £1 billion annually.
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