Chancellor Rachel Reeves has signalled plans to remove the two-child benefit cap in what would mark one of the most significant reversals of welfare policy since the austerity era.
She said the limit unfairly penalises children in larger families and contradicts Labour's pledge to tackle child poverty. The move has drawn support from anti-poverty campaigners and thinktanks who say it would make the welfare system fairer and lift hundreds of thousands of children out of hardship. The Resolution Foundation estimates that scrapping the rule could take between 330,000 and 500,000 children out of poverty by the end of the decade.
