Scrapping the two-child benefit cap would lift 300,000 children out of poverty
With the King’s Speech set to take place tomorrow, the government is coming under growing pressure by anti-poverty charities and campaigners to scrap the two-child benefit cap which is pushing thousands of children from low-income families into poverty.
The two-child benefit cap prevents parents from claiming child tax credit or universal credit for any third or subsequent child born after April 2017. It was introduced by the former chancellor George Osborne in his austerity drive with the aim of encouraging parents of larger families to find a job or work more hours.
Over time, an increasing number of families have been affected by the policy. What have been its effects and how much of a devastating impact has it had? Here are some of the facts and figures below:
1.The two-child benefit cap now affects 1.6 million children
According to the latest figures released by the Department for Work and Pensions, a record 1.6 million children are living in families affected by the controversial policy.
Campaigners, charities and MPs across the political spectrum described the figures as shameful and renewed calls for the benefit limit to be scrapped.
2. Scrapping the two-child benefit cap would lift 300,000 children out of poverty
According to the Child Poverty Action Group, scrapping the two-child benefit cap would lift 300,000 children out of poverty. No other single measure the government could take would be as cost-effective in reducing the number of children living below the breadline.
3. The two-child benefit cap can cost low-income households up to £3,455 a year
The two-child limit denies child allowances in universal credit (UC) and tax credits worth up to £3,455 per year to third or subsequent children born after April 2017. That’s a massive hit to families on low incomes who are struggling amid a cost of living crisis.
4. The cap now affects nearly half a million families
The Resolution Foundation thinktank says the number of families affected by the policy has increased from 70,000 to 450,000 in the past six years and that a third of its impact is yet to come.
Basit Mahmood is editor of Left Foot Forward
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