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Reading: Angela Rayner ‘will not speculate’ over potential adjustments to two-child profit cap
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Michigan Post > Blog > Politics > Angela Rayner ‘will not speculate’ over potential adjustments to two-child profit cap
Politics

Angela Rayner ‘will not speculate’ over potential adjustments to two-child profit cap

By Editorial Board Published February 26, 2025 4 Min Read
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Angela Rayner ‘will not speculate’ over potential adjustments to two-child profit cap

Angela Rayner “won’t speculate” on reviews the federal government might exempt youngsters below 5 from the two-child profit cap.

The Guardian first reported the Division for Work and Pensions (DWP) was contemplating the change, alongside different tweaks like exempting dad and mom of disabled youngsters and oldsters in work, and rising youngster profit funds for folks of younger youngsters.

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The paper additionally stated there had been discussions about elevating the cap to 3 youngsters.

Ms Rayner stated there had been “high levels of child poverty” below the Conservatives, and the federal government arrange a activity drive “immediately once we were elected” to scale back it.

“That work is ongoing,” she added.

Labour ‘dedicated’ to decreasing youngster poverty

The deputy prime minister refused to take a position on what particular measures could possibly be taken, however stated Labour are “absolutely determined to look at the evidence – and where we can make a real impact, we will deliver”.

“Like the previous Labour government did in reducing levels of child poverty, this Labour government is absolutely committed to doing the same,” she stated.

A DWP spokesperson stated: “We do not comment on speculation.

“Our ministerial taskforce is exploring all accessible levers throughout authorities to present each youngster one of the best begin in life as a part of our plan for change.”

The 2-child cap was launched in 2015 as a part of David Cameron and George Osborne’s austerity measures.

It means dad and mom can solely declare tax credit or Common Credit score for his or her first two youngsters.

Many within the Labour Get together, together with Sir Keir Starmer, criticised the cap earlier than coming into authorities.

As lately as 2020, Ms Rayner branded the two-child cap “inhumane” and referred to as for it to be axed.

Nevertheless, the prime minister stated he wouldn’t scrap the cap resulting from it being too costly as final 12 months’s election loomed nearer.

Sir Keir ended up ejecting seven MPs from the parliamentary Labour Get together final summer time after they voted in opposition to the federal government over the problem.

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The federal government has set out plans to attempt to cut back the quantity spent on advantages and different assist in a bid to rein in public spending.

However with totally eradicating the two-child cap more likely to value billions of kilos, it’s unlikely to be a step the federal government can take any time quickly.

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