The upcoming month will see the number of children from working families affected by the two-child limit reaching one million, leading campaigners to express concerns about parents facing extreme financial pressure. According to analysis by the Child Poverty Action Group (CPAG) based on statistics from the Department for Work and Pensions (DWP), 59% of families impacted by the two-child limit are employed, with a significant portion of those not working due to caring for very young children or dealing with illness or disability.
For instance, a single parent with three children working full-time at minimum wage falls £4,500 below the poverty line due to the two-child limit. Eliminating this policy would reduce this shortfall to £1,000 annually. Similarly, a couple with three children affected by the limit, where one parent works full-time and the other part-time at minimum wage, currently faces a £2,000 deficit below the poverty line. Removing the policy would place this family £1,500 above the poverty line.
Pressure is mounting on the Government to remove this policy as part of the upcoming child poverty strategy. Abolishing the two-child limit is seen as the most efficient way to alleviate child poverty. CPAG estimates that scrapping this policy would lift over 350,000 children out of poverty and alleviate poverty for many others, at an estimated cost of £2 billion.
CPAG Chief Executive Alison Garnham emphasized the challenges faced by families due to the two-child limit, highlighting the financial struggles of working parents. She urged the government to prioritize scrapping the policy in the child poverty strategy to prevent an increase in child poverty levels.
In response, a Government spokesperson emphasized the commitment to providing every child, regardless of background, with a strong foundation. The Child Poverty Taskforce will introduce a comprehensive strategy aimed at addressing the structural causes of child poverty. Initiatives such as investing in children’s development through Best Start Family Hubs, extending free school meals, and implementing a £1 billion crisis support package to prevent hunger during holidays are part of the efforts to support children’s well-being.