End of two-child benefit cap will see some parents hit second £22k limit

Ministers have come under immediate pressure to reconsider household welfare caps despite the Chancellor’s £3 billion intervention in lifting the two child limit.

Rachel Reeves – who resisted fully scrapping the child benefit limit for months – told delighted Labour MPs she would not “preside over a status quo that punishes children for the circumstances of their birth”.

Ditching the policy, a move Labour backbenchers have long called for alongside campaigners, will lift an estimated 450,000 out of poverty by 2029, at a cost of around £3 billion. New Feature

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The Office for Budget Responsibility said scrapping the policy, which prevented parents on welfare from claiming benefits for a third or subsequent child, will lead to an est