The UK government is considering an exemption for families with under-fives from the two-child benefit cap, a move aimed at reducing child poverty numbers.
Ministers are exploring options to alleviate the impact of the two-child limit for universal credit or child tax credit, which was imposed by the Conservatives in 2017. The aim is to bring down child poverty numbers without removing the rule entirely.
Among the options being considered is applying the limit only to those with children who are five and over. Additionally, parents of disabled children may be exempted from the limit, as well as parents who are in work. Increasing child benefit payments for parents of young children is also being discussed.
Another proposal under consideration is moving to a three-child limit, but this option is not being taken seriously. Ministers hope that these plans will address criticism that Labour is not doing enough to tackle child poverty.
Ministers and officials are in regular talks with thinktanks and child poverty experts as they put the finishing touches to their strategy. They have asked several organisations to work up models for how many children could be lifted out of poverty under various scenarios.
The argument for lifting the cap for parents of very young children has been bolstered by an analysis from the Fabian Society, which shows that 1.2 million children aged up to four are living in a household with less than 60% of the median income, after housing costs have been accounted for.
A separate analysis published on Wednesday by the Resolution Foundation shows that pushing ahead with existing plans to reduce the welfare bill by £3bn would contribute to a rise in overall child poverty from 31% to 33% by 2030. That would raise the number of children living below the poverty line to an all-time high of 4.6 million.
The thinktank added, however, that scrapping the child benefit cap and the overall welfare cap would lift 500,000 children out of poverty, albeit at a cost of £4.5bn. Adam Corlett, a principal economist at the Resolution Foundation, said: ‘A government that is serious about reducing child poverty will need to undo some of the policies announced by previous governments, such as scrapping the two-child limit.‘
Adam Corlett is a British economist and policy analyst.
He serves as the Economic Adviser to the High Pay Centre, a UK-based think tank focused on issues related to income inequality and executive pay.
Corlett has also worked at the Resolution Foundation, a leading UK economic think tank.
His work primarily focuses on labor market policies, taxation, and wealth inequality.
- theguardian.com | Parents of under fives may be exempted from UK’s two child benefit limit
