Two-child benefit cap could be relaxed

Parents of under-fives could be exempted from the government's two-child benefit limit under a range of options UK ministers are considering as they try to bring down child poverty numbers without removing the rule altogether.

- Kiran Stacey Aletha Adu Phillip Inman

Ministers are trying to find ways to alleviate the impact of the two-child limit for universal credit or child tax credit, which was imposed by the Conservatives in 2017, without spending £3.6bn to remove it entirely, according to those briefed on the discussions.

Among the options is applying the limit only to those with children who are five and over, exempting parents in work and those of disabled children, and increasing child benefit payments for parents of young children. A separate proposal to move to a three-child limit has also been discussed, but is understood not to be under serious consideration.

Ministers hope the plans will answer criticism that Labour is not doing enough to tackle child poverty. But their publication this spring could be another flashpoint in relations between the government and Labour backbenchers, many of whom want the cap abolished completely.

One person briefed on the discussions said: "Officials are keen to mitigate the impact of the cap, if not lift it entirely. They have been discussing a range of options to do so, but at the moment, helping parents of under-fives seems to be one of the most likely."