The upcoming month will see the number of children from working families impacted by the two-child limit reaching a million, with concerns raised by activists about parents facing severe financial strain.
According to analysis conducted by the Child Poverty Action Group (CPAG) based on Department for Work and Pensions (DWP) data, 59% of families affected by the two-child limit are employed, while a significant portion of those not affected are exempt due to having young children or facing health issues.
For instance, a single parent with three children working full-time at minimum wage falls below the poverty line by £4,500 annually due to the two-child limit. Eliminating this policy would see them just £1,000 below the poverty line.
Similarly, a couple with three children impacted by the limit, where one parent works full-time and the other part-time at minimum wage, is currently £2,000 below the poverty line. Removing the policy would place them £1,500 above the poverty threshold.
Pressure mounts on the Government to discard the Tory-era two-child limit policy in the forthcoming child poverty strategy, as it is widely acknowledged as the most efficient means of reducing child poverty.
CPAG asserts that abolishing the policy would elevate over 350,000 children above the poverty line and alleviate poverty for many more at a cost of £2 billion.
Alison Garnham, CEO of CPAG, emphasized the struggles faced by parents trying to balance work, childcare, and financial obligations due to the two-child limit. She called on the Government to commit to scrapping the policy to prevent an increase in child poverty levels.
The Government spokesperson highlighted the commitment to providing every child with equal opportunities for a successful future. Initiatives include the Child Poverty Taskforce’s forthcoming strategy to address the underlying causes of child poverty, alongside investments in child development programs, free school meals expansion, and crisis support measures to prevent hunger among disadvantaged families.