A Salford charity has hailed the decision to scrap the two-child benefit cap in full from next April.
Caritas Salford welcomed Rachel Reeves’ decision to scrap the controversial two-child benefit cap at today’s budget.
The announcement follows months of pressure from dissenting Labour MPs, including local representative Rebecca Long-Bailey.
Ditching the policy will result in an estimated reduction of child poverty by 450,000 and cost around £3 billion at the end of this Parliament.
The charitable arm of the Catholic Diocese of Salford said that they “warmly welcome the lifting of the two-child benefit limit” and highlighted that the move will “instantly lift “350,000 out of poverty.”
Caritas Salford said they had met with several local MPs to discuss the two-child benefit cap and were “grateful” that many took action to advocate for change on behalf of the charity.
“We also want to thank all of you who have read and shared our work on child poverty and the two-child limit, everyone who has donated, and all who have signed pledge cards to stand with us in calling for an end to child poverty,” a celebratory statement said.
“Your incredible support has shown that when we stand together and shout loudly for justice, change is possible.”
Walkden MP Yasmin Qureshi expressed her delight at Chancellor Rachel Reeves’ decision to abolish the two-child limit, which restricts child tax credit and universal credit (UC) to the first two children in most households.
She said: “I’m delighted the Chancellor has heard what families across Bolton South and Walkden have been calling for, removing the two-child benefit cap and taking thousands of children out of poverty.”
A technical error meant confirmation of the policy was leaked ahead of Rachel Reeves’ announcement. But Labour MP Qureshi maintained that, despite the hiccup, her party had made shrewd economic and fiscal decisions.
“This budget has made the right choices, choosing to rebalance our economy to be fairer and ensuring that every child has the best start in life.”
Wednesday morning’s change to the child benefit cap means families, from April 2026, can receive the child element of UC for all children regardless of family size.
The Office for Budget Responsibility said it will lead to an estimated 560,000 families seeing an increase in their UC award, averaging £5,310 per year.
But, while Caritas Salford say that the decision will have a tangible impact on the number of young people across the city living in poverty, they have called on the government to provide further support for children and families.
But, while Caritas Salford say that the decision will have a tangible impact on the number of young people across the city living in poverty, they have called on the government to provide further support for children and families.
“We celebrate this success, which we, alongside many other organisations, have long campaigned for. However, this cannot mark the end of investment in the social security system or reforms for children and families – it is just the beginning.
“We also know that there are too many children continuing to go to school hungry but who are not eligible for free school meals, and that many remain trapped in unsuitable and unsafe temporary accommodation. We hope that the forthcoming Child Poverty Strategy will set out ambitious, long-term solutions to urgently tackle these injustices.
“Child poverty will not be eradicated by a single policy change or one Budget, so we will continue to campaign and call for change, until every person has the chance to transform their life with dignity.”
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