DWP urged to scrap 'cruel' policy that's inadvertently costing UK £3.2bn

The Department for Work and Pensions has been urged to axe a "cruel" rule and policy which would reduce the cost of poverty by over £3 BILLION. DWP bosses have been handed research which suggests there would be huge economic benefits to ending the two-child benefit cap.

Experts at the New Economics Foundation have suggested that Labour ministers are failing to account for the “wider economic benefits that would result from lifting children out of poverty”. Sam Tims, senior economist at the New Economics Foundation, said: “The two-child limit is a cruel policy that not only keeps families in poverty but holds back people and places from achieving their economic potential.”

Chancellor Rachel Reeves is due to set out the UK Government's budget on October 30. However, senior Labour politicians have said the Government is not currently in a place to scrap the cap. It was introduced in 2017 and has specific exemptions in place for twins and proving the child is was born as a result of rape.

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“It”s clear that scrapping the two-child limit and the benefit cap are two of the most effective levels the state can pull to lift children out of poverty and a necessary investment for a government that wants to boost growth across the country,” Tims said. “The long-term benefits of scrapping these policies, including easing pressure on our crumbling public services and boosting the future earnings potential of children in poverty, would help ensure prosperity in parts of the country that have been held back for far too long.”

A government spokesperson previously said: “No child should be in poverty – and we are committed to ensuring that children across the country have the best start in life.” It has established a ministerial taskforce to “look at all available levers across government” to help tackle child poverty, a move which has been welcomed by charities.