Bridget Phillipson emphasized the severe impact of the limit on benefits for families with two children. The Education Secretary, currently in the running for the position of deputy leader to replace Angela Rayner, strongly hinted at the imminent removal of this policy.
Leading the government’s efforts to address child poverty, Phillipson stressed the urgency of the situation. She highlighted the escalating rates of child poverty due to the restriction and emphasized the need for decisive action.
In an interview with the BBC, Phillipson criticized the policy as a Conservative initiative that has significantly harmed children. She assured that steps would be taken to rectify the situation.
Meanwhile, Rachel Reeves is contemplating abolishing the two-child benefit cap, which restricts support under Child Tax Credits and Universal Credit. The Chancellor is exploring alternative options, such as implementing a new graded system that could provide higher benefits for the first child and reduced support for subsequent children. There are also discussions about easing the limit by extending benefits to families with three or four children.
Government officials clarified that no final decision has been made yet, with ongoing deliberations by the child poverty task force. According to a government source, the child poverty strategy is still under review, and no concrete actions have been determined.
Reeves refrained from confirming the removal of the two-child benefit cap during a recent event at the Labour party conference. She emphasized the commitment to reducing child poverty but highlighted the need to clarify funding sources before implementing new policies.
In the race to succeed Angela Rayner as deputy leader, Bridget Phillipson faces competition from former Commons leader Lucy Powell, who also supports the scrapping of the controversial policy initiated during the Tory era.