by The Institute for Fiscal Studies has warned that the number of children who will be affected by the cap on two-child benefit will increase by one-third in the next five years.
This legislation restricts Child Tax Credit and Universal Credit mainly to the first two children in most households. Currently, the limit affects two million children, with more affected each year as it relates to those born after April 5, 2017.
On full implementation, one in five children will miss out on benefits, rising to 38% of those in the poorest fifth of families, according to the IFS study. An additional 250,000 children are projected to be affected next year, rising to 670,000 by the end of the next parliament if no policy adjustments are made, the think tank says.
An IFS study revealed that 43% of children living in homes where at least one person is of Bangladeshi or Pakistani origin will be beaten. The families affected will lose, on average, £4,300 per year, which is 10% of their income based on the analysis, if nothing changes.
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Neither the Labor party nor the Conservative party have pledged to end the two-child limit in their General Election manifestos. Campaigners have labeled the policy, which was introduced by the Conservatives in 2017 and has historically been blamed for keeping children in poverty, as “cruel”.
The introduction of the cap contributed to an increase in the number of children in large families in relative poverty from 35% in 2014-15 to 46% in 2022-23, the study found. Meanwhile, during this period, poverty decreased for families with one or two children, the IFS said.
The research institute has revealed that scrapping the two-child limit would cost the Government around £3.4 billion a year, which is the same as the costs of freezing fuel duties for the next term .
Eduin Latimer, research economist at IFS, said: “The two-child limit has been one of the most significant welfare cuts since 2010 and, unlike many of these cuts, it becomes more important every year as it is rolled out to more more family. “
Mubin Haq, who serves as chief executive of the Financial Fairness Trust, which funded the research, said: “The cap significantly reduced child poverty among large families during a period when poverty fell for families with one or two children. “
He added: “If the next government is serious about tackling child poverty, it will have to review the two-child limit. There is a fundamental inequity in the policy as it only affects those children born after after 5 April 2017. Most affected families are working or have caring responsibilities for relatives or young children with disabilities.”
Alison Garnham, chief executive of the Child Poverty Action Group, said: “Child poverty in the UK is a national disgrace and the two-child limit is the biggest driver of it. It makes life worse for children across the country and in the country. limit his future chances.
“Children affected by child poverty do not have a voice in this election but politicians from all parties have a responsibility to show them leadership. and do so quickly.”
Paul Carberry, Chief Executive of Action for Children, said: “This is yet more shocking evidence of the huge scale of the damage being done to children and families by the hard two-child limit, which is well known to push families into poverty and , which if destroyed would lift 300,000 children out of poverty.
“The election provides an opportunity for bold and ambitious action and for all political parties to commit to ending child poverty once and for all. benefit cap.
However, the SNP’s social justice spokesman, David Linden, laid the blame at Labour’s feet, arguing that their policies would “push thousands of Scottish children into poverty”.
“It is absolutely disgraceful and shows why it is vital that the SNP vote to reject Starmer’s cuts, tackle child poverty and put Scotland’s interests first,” he said.
“Ending child poverty is at the heart of our election campaign at the SNP. We have lifted 100,000 children out of poverty with progressive policies such as the Scottish Child Payment and Best Start Grant and we are demanding action at Westminster, including an emergency budget, scrapping the two-child limit, raising universal credit, and ending the bedroom tax.
“The Labor Party is shamefully involved in welfare cuts and Brexit policies that will make child poverty and the cost of living even worse.”
