Pressure is mounting to eliminate the controversial Tory policy of limiting benefits to families with more than two children, as highlighted by Bridget Phillipson, co-chair of a panel addressing child poverty. The Education Secretary emphasized the necessity of this mission for the Labour Party, echoing the sentiments of over 100 MPs who have urged Chancellor Rachel Reeves to abolish the cap on claiming child tax credit or universal credit for additional children.
Phillipson stressed the evident impact of the two-child limit, expressing the need for further action to address this issue. A comprehensive strategy outlining the government’s approach to reducing child poverty is set to be released in the Autumn. In a move supported by former Prime Minister Gordon Brown, a group of 101 Labour MPs has proposed increasing taxes on gambling companies to finance the removal of the benefit cap.
Research conducted by the Resolution Foundation revealed that removing the cap would incur a cost of £3.5 billion but would elevate 470,000 children out of poverty. Phillipson underlined her unwavering commitment to initiatives like free school meals and breakfast clubs, emphasizing their positive impact on children’s future prospects.
The call to lift the cap, introduced under the Conservative government, faced resistance during Keir Starmer’s early days in office. Labour MPs have emphasized the need to prioritize child welfare over the profits of gambling companies, pointing out the significant burden gambling-related harms place on public services and the economy. They advocate for fair taxation of gambling activities to combat poverty and reduce societal harm.