Starmer calls two-child benefit cap a ‘failed social experiment’ that had to go
Starmer calls two-child benefit cap an ‘economic disaster’
- Labour leader Keir Starmer has condemned the two-child benefit cap as a "failed social experiment" and an “economic disaster,” confirming the party's intention to abolish it.
- The Prime Minister stated that scrapping the cap, announced by Rachel Reeves in her Budget, aims to lift hundreds of thousands of children out of poverty.
- The Office for Budget Responsibility estimates that abolishing the cap will cost approximately £3 billion by the end of this Parliament.
- From April 2026, the change will allow families to receive the child element of Universal Credit for all children, with 560,000 families expected to see an average annual increase of £5,310.
- The move has been welcomed by anti-poverty campaigners as "game-changing," though Conservative critics argue it is "totally unfair" and prioritises welfare over work.