Reeves Scraps The Two-Child Benefit Cap And Delights Campaigners: 'We Won!'

Rachel Reeves chose to scrap the two-child benefit cap in her Budget.Rachel Reeves declared today that she was scrapping the divisive two-child benefit cap in a major win for Labour backbenchers and campaigners.As HuffPost UK revealed in September, the chancellor has confirmed in her Budget that the government is dropping the restrictions which stopped families from claiming more of universal credit on any children after their second.Though it will cost the Treasury £3 billion a year, the government intend to fund it by increasing taxes paid by the gambling industry.Reeves told the Commons today: “There are many reasons why people choose to have children and then find themselves in difficult times: The death of a partner, ill health, a lost job. I don’t believe children should bear the brunt of that.”It was a moment of light-relief in the government’s otherwise gloomy Budget.It comes a year after Labour controversially chose to keep the Tory policy when they were elected in 2024, even withdrawing the party whip from seven MPs who voted against the government’s decision.Chancellor Rachel Reeves is met with cheers and boos in the Commons as she announces the removal of the two-child benefit cap from April next year.Follow live 🔗 https://t.co/zDXlFZC4X8📺 Sky 501, Virgin 602, Freeview 233 and YouTube pic.twitter.com/m3xQNrrHl2— Sky News (@SkyNews) November 26, 2025The news was quickly welcomed by campaign groups like the anti-poverty charity Trussell.It posted on X: “WE WON, The two-child benefit limit is GONE! This will pull 470,000 children out of severe hardship by 2027. This is a massive victory for families, campaigners, and every one of you that played your part urging the Chancellor to act.”Joseph Howes, chief executive of Buttle UK, said: “We are relieved to see an end to the cruel two-child cap. Poverty impacts children in devastating ways, it has been a life sentence for thousands of children, sentenced to an upbringing that has severely impacted their ability to engage in education in the UK.“The consequences of this will be lasting. Too many children are growing up hungry, sleeping on floors and with mould on the walls of their house, we look forward with optimism that these families will start to see some relief.”Child Poverty Action Group wrote on social media that this is a “transformational” for children. “This is a much-needed fresh start in our country’s efforts to eradicate child poverty and while there is more to do it gives us strong foundations to build on,” the campaigners said.Save the Children UK said: “This announcement sends a clear signal that all our children’s lives are valued regardless of the circumstances of their birth and that the UK Government is committed to giving every child the best start in life. This is a moment of hope for hard up families.”Politicians also welcomed the move. The chairs of the cross-party committees for Education and Work and Pensions celebrated the announcement.Labour MPs Helen Hayes and Debbie Abrahams said this move would “almost immediately lift hundreds of thousands of children out of poverty and stop even more being drawn into it.”Green MP Sian Berry wrote on X: “The two-child benefit cap is finally in the bin.“Govt was made to do the right thing by Greens and campaigners, but too many families have been harmed by Labour foot-dragging. The unjust overall benefit cap must end too for every child in poverty to be helped.”The Children’s Commissioner Dame Rachel de Souza said it was a “vital first step” which could “transform” the lives of children currently in poverty.She said: “I have long called for its removal because it is the right thing to do when there are children growing up without basics like food, clothing, or warm, safe, homes – so I am delighted the government has listened to children around the country who have spoken about the impact of growing up feeling ashamed of having to go without.”Former deputy PM Angela Rayner was also quick to praise the move, saying: “Ending the two-child benefit cap will help hundreds of thousands of children out of poverty. Labour’s record on fighting child poverty changed my life. Now we’re doing it again for the next generation.”Related...As Child Poverty Soars, UK Baby Banks Brace For The Toughest Winter YetExclusive: Ministers Slammed Over 'Tone Deaf' Social Media Post Amid Soaring Child PovertyWill Starmer Act? Pressure Builds On PM To Scrap 2-Child Benefit Cap As Thousands More Kids Affected

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