Pressure is increasing to eliminate the controversial Tory policy that limits benefits for families with more than two children, according to Bridget Phillipson. The Education Secretary, co-chairing a panel on child poverty, emphasized the importance of this mission for the Labour Party. Over 100 MPs have urged Chancellor Rachel Reeves to abolish the cap on child tax credit or universal credit.
Phillipson highlighted the necessity of reconsidering the two-child limit, citing its evident negative impact. A forthcoming government strategy aims to address child poverty, with 101 Labour MPs proposing taxing gambling firms to fund lifting the cap, a suggestion supported by former PM Gordon Brown.
Research by the Resolution Foundation estimates the cost of removing the cap at £3.5 billion but predicts it would raise 470,000 children out of poverty. Phillipson emphasized her dedication to securing free school meals and breakfast clubs, stating they are essential for children’s well-being and future prospects.
Keir Starmer faced internal dissent urging him to lift the cap, which was implemented by the previous administration. Labour MPs have highlighted the disparity between gambling companies’ profits and child poverty, advocating for fair taxation to address poverty and gambling-related harm.