Two-child benefit cap closer ‘to being lifted’ to stop growing Labour rebellion
SCRAPPING the two child benefit cap is an option "on the table" for the Treasury, Bridget Phillipson admitted today.
The Education Secretary gave one of the biggest hints yet that Chancellor Rachel Reeves will lift the threshold on claiming handouts for kids in a bid to placate a growing Labour rebellion.
Asked whether ministers are planning to abolish the cap, Ms Phillipson told Times Radio: "It's on the table.
"No measures are off the table."
The Education Secretary added: "We've always been clear about that and of course social security is an important element of how we tackle child poverty.
"It's not the only area. Childcare plays an important role, skills, how we ensure that more people are able to get back into work.
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"There are lots of ways that the Child Poverty Task Force is considering how we can lift children out of poverty.
"But of course we can't ignore the impact of social security changes, social security changes that were introduced by the Conservatives that a Labour government would not have introduced in the first place.
"But it's tough, it's challenging."
Who's exempt from the two-child benefit cap?
The two-child benefit cap means that you can only get more child tax credit or Universal Credit for your third (or more) child if:
- They were born before April 6, 2017
- They are disabled (disabled child element only)
- You qualify for an exception in child tax credit or special circumstances apply in Universal Credit
You qualify for an exception or special circumstances for each third (or subsequent) child if:
- You have adopted them or other children in your household
- You receive guardian's allowance for them or other children in your household
- They are the second (or more) child born in a multiple-birth
- They or other children in your household are the offspring of one of your children who is under 16 years old
- They or other children in your household are not your child or stepchild, and you look after them under a court order
- They or other children in your household are not your child or stepchild and you look after them under an arrangement with Social Services (except for formal foster care)
- They were conceived as a result of rape, and you do not live with the perpetrator
Ms Reeves is under huge pressure from Labour figures - including Gordon Brown - to lift the 2 child benefit cap, which limits the full benefits parents can get to two children.
Sir Keir Starmer is looking at lifting the cap after a revolt from his MPs - but it would cost around £3 billion a year.
With Treasury coffers running low, No11 is expected to have to raise taxes to pay for the benefit.
Senior Labour MP Meg Hillier, chairwoman of the powerful Treasury select committee, became the latest to come out backing lifting the cap.
She told the BBC that it's the most efficient way to lift kids out of child poverty.
She said: “The only way we will lift children out of poverty in those households is to get that money to them.
“No Labour MP wants child poverty to go up by the end of the parliament.”
How to claim Child Benefit
Read below if you would like more information on how to claim child benefit.
Child benefit is worth up to £1,331 a year for your first or only child and up to £881 a year for additional children.
This works out at £102.40 every four weeks or £25.60 a week for your first child and £67.80 every 4 weeks or £16.95 a week for their siblings.
There is no limit on the number of children that can be claimed for.
Applying is straightforward and can be done in minutes at gov.uk or through the HMRC app.
Parents with a newborn baby should make a claim online as soon as possible and could then receive their first payment in as little as three days.
You can also backdate claims for up to three months.
Parents can make a claim and then choose to opt out of receiving Child Benefit payments can still receive National Insurance credits if one parent is not working.
National Insurance credits build up your entitlement to the state pension.
Yesterday Deputy PM Angela Rayner said lifting the two-child benefit cap is not a "silver bullet" answer to help struggling families.
The Labour deputy leader told Sunday Morning with Trevor Phillips: "It's not going to alleviate the levels of poverty there is."
She added: "It might be a signal but it’s not a silver bullet.
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"It’s not going to alleviate the levels of poverty there is - there’s a number of factors - people’s wages not increasing, their employment being insecure, the cost of living crisis that we face, bills going up, and the housing costs going up.
"So, it’s not one particular element that is going to safeguard people from the poverty we’ve seen after 14 years of the Conservatives."