Reeves set to lift two-child benefit cap in budget?

Written by David Fletcher 03 Oct 2025
Reeves set to lift two-child benefit cap in budget?

Rachel Reeves is expected to announce changes to the two-child benefit cap in November’s Budget, amid growing pressure to scrap the policy introduced by George Osborne under Conservative austerity measures. The cap currently limits child benefit payments to the first two children in a family, affecting 1.6 million children. Campaigners argue its removal would be the single most effective step in reducing child poverty. She has convened a government taskforce on child poverty and signalled she will act on its recommendations, though she stresses financial constraints must be considered. Options include abolishing the cap outright or introducing a tapered system, potentially limiting payments for larger families or linking them to working parents on universal credit. Keir Starmer has already pledged extended free school meals as part of efforts to end child poverty, saying 'a Britain where no child is hungry' is central to Labour’s vision. Critics warn of significant cost implications, while supporters say families cannot wait for relief.

Additional Info