Budget: Two-child cap removal 'a major victory'

The move to scrap the two-child benefit cap represents “one of the most significant social policy decisions in years”, business leaders have said.

Chancellor Rachel Reeves has committed to axing the policy in a bid to drag 450,000 youngsters out of poverty by 2030.

And commercial sector officials have welcomed the move, saying it marks a “major victory in the fight to end child poverty”.

Matthew Allen, lecturer in economics at the University of Salford, said: “The lifting of the two-child benefit cap is one of the most significant social policy decisions in years.

“It reverses a controversial measure long connected to rising child poverty.

“While it increases public spending, it will provide essential support to low-income families and could boost local economies.”

North East mayor Kim McGuinness, whose manifesto includes a commitment to drive down the numbers of underprivileged children in the region, said: “This is a major victory in our fight to end child poverty.

“We fought for the end of the cruel two-child benefit cap that stifled opportunity.

“This will change the lives of nearly 50,000 North East children.”

Zoë Billingham, director of think tank IPPR North, said: “The Chancellor has shown who she stands for by focusing on the cost of living and lifting almost half a million children out of poverty.

“By asking those with the broadest shoulders to contribute, she has protected working people from the worst of a difficult economic environment.”

Lee Bloomfield, chief executive of Bradford-based Manningham Housing Association, added: “The removal of the two-child benefit cap will help lift a sizeable number of children out of poverty.

“That said, I am concerned many more people on the lowest incomes will be dragged into paying income tax by the Chancellor choosing to extend the £12,570 personal allowance threshold until 2031.”

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