Labour launches child poverty plan and signals future changes to welfare

No one should think the government is backing away from reforming the welfare system, which is not helping enough people into work and has significantly rising costs, Pat McFadden said yesterday as he launched Labour’s new child poverty strategy.

- Rowena Mason Whitehall editor

The work and pensions secretary said the aim of the strategy was to improve young lives for the long term, arguing that those lifted out of hardship are likely to have improved prospects for future employment.

“This is about more than the distribution of money. It’s an investment in the future of the children who are affected by poverty,” he said.

He also said further changes to the welfare system to encourage work were important for improving children’s lives, as future jobs would make families better off and save money on the benefits bill.

The flagship policy in the strategy, published yesterday, is the pledge to end the two-child limit on universal credit at a cost of £3bn to the Treasury, a move that will lift 450,000 out of poverty by 2031. Other measures include helping families choose cheaper baby formula, getting families out of temporary accommodation faster, and extending breakfast clubs and free school lunches.

Labour MPs are delighted with the move to scrap the two-child limit, and previously won a victory over the government last July when they forced it to abandon plans to cut disability benefits, arguing it was unfair.