abour leader Sir Keir Starmer has revealed that a Labour government would keep the controversial two-child benefit cap that the Conservative government put in place.
Back in February 2020, Starmer had said that he wanted to scrap the policy to “tackle the vast social injustice in our country”.
Similarly, the party’s shadow home secretary Yvete Cooper has defended keeping the cap and told ITV’s Good Morning Britain: “What Labour’s been clear about is we have to tackle the cost-of-living crisis and we also will always make sure that the proposals we put forward are fully costed and funded so that we can actually deliver them, and I think that’s what people want to see.”
The politicians’ comments come just weeks after their shadow work and pensions secretary, Jonathan Ashworth, condemned the cap for being “heinous”.
This, combined with a recent study by the universities of York, Oxford, and London School of Economics that revealed the “poverty-producing” effects of the policy, led to some being surprised by the Labour leader’s decision.
But what exactly is the two-child benefit limit, how has it affected British families, and how much is current child benefit?
Here is everything we know.
What is the two-child benefit limit?
The benefit cap first came into effect in 2013, limiting the amount of benefits a household could receive.
Then, later, in 2017, a two-child limit was brought in with the hopes of encouraging parents of larger families to get jobs and low-income families to have fewer children.
The policy prevents parents from claiming child tax credit or universal credit for their third or subsequent children born after April 2017.
How has the child benefit limit affected UK families?
A recent research conducted by the universities of York, Oxford, and London School of Economics revealed that the two-child limit and the benefit cap had failed to meet their own goals, having zero positive incentive impact on employment and failing to reduce fertility among poorer families.
Plus, it was found that the cap had been “poverty-producing”, causing thousands of low-income families anxiety and hardship.
Talking about their findings, Ruth Patrick from the University of York has shared: “Our research evidence makes clear that the two-child limit and benefit cap are poverty-producing policies, which fail to meet their stated aims. Both policies need to be removed urgently, as part of a broader commitment to addressing child poverty and investing in children and families.”
How much is Child Benefit?
For the 2023-2024 financial year, the Child Benefit will see a family’s eldest or only child be given £24 per week. Any additional children will receive £15.90 from the Government.
Child Benefit is usually paid every four weeks on a Monday or Tuesday. However, you can have the money paid weekly if you’re a single parent or getting certain other benefits, such as Universal Credit.
If either of the parents’ adjusted net income is more than £50,000 a year, they may have to pay the High Income Child Benefit Charge.
More information about this can be found on the Government’s website.