Labour confirms abolition of two-child cap which will reduce child poverty by 450,000

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The removal of the cap will benefit 560,000 families by an average of £5,310 per year and reduce child poverty by 450,000, according to the OBR.

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The Labour government has confirmed that it will be lifting the two-child benefit cap which pushed hundreds of thousands of children into poverty.

During the budget speech, Chancellor Rachel Reeves told the Commons: “I can announce today fully costed and fully funded the removal of the two-child limit in full from April.”

The removal of the cap will benefit 560,000 families by an average of £5,310 per year and reduce child poverty by 450,000, according to the OBR.

The two-child benefit cap was introduced by Osborne as Conservative chancellor. It bars families from claiming the £292.81-a-month child element of universal credit for third and subsequent children born after April 6, 2017.

According to the Child Poverty Action Group, every day it remains in place, 109 more children are pulled into poverty by the policy.

Reeves’ announcement was met with much applause in the Commons and will make a major difference to families up and down the country.

This is the difference a Labour government.

Basit Mahmood is editor of Left Foot Forward

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