Sun, 06 Jul 2025

Sun, 06 Jul 2025 Welfare U-turn makes spending decisions harder, minister says

Bridget Phillipson does not commit to scrapping the two-child benefit cap, saying it will "come at a cost".

* 1.6 million children live in households affected by the cap
* £3.4bn a year would be lost if the policy was axed, according to IFS estimates
* The move would lift 500,000 children out of relative poverty Phillipson said ministers were "looking at every lever" to lift children out of poverty, but removing the cap would "come at a cost". The government's U-turn on welfare changes came after a rebellion by Labour MPs forced them to water down plans that would have saved £5bn a year by 2030. The move puts pressure on Chancellor Rachel Reeves ahead of the autumn Budget.
  >>