Mon, 10 Nov 2025

Mon, 10 Nov 2025 Reeves suggests benefit limits on larger families to be lifted

The chancellor tells the BBC children in bigger families should not be "penalised" by the welfare system.
Labour's Chancellor, Rachel Reeves, has suggested that she may remove limits on benefits linked to family size in this month's Budget. This could mean scrapping the two-child limit on working-age benefits introduced by the Conservatives in 2017. Reeves argued that it was unfair for children from bigger families to be "penalised" through no fault of their own. Labour MPs have been calling for a full reversal of the policy, and some options under consideration include limiting additional benefits to three or four children. Reeves stated that she does not think it's right for benefits to be limited according to family size, adding that there are many reasons why parents may choose to have more children. She also mentioned that Labour will take action on child poverty, which has been a key issue in the party's recent deputy leadership contest. The move would mean abandoning Labour's 2024 election manifesto pledge not to raise income tax rates or National Insurance contributions. The Chancellor acknowledged that sticking to the manifesto commitments would require "deep cuts" in capital spending. Reeves also confirmed that she will prioritize reducing child poverty, citing Labour's previous success in reducing child poverty during their last government. She emphasized that her priority is to do what is right for the country, rather than making politically easy choices. The move has been seen as a significant shift in policy by Labour, and could be a major election issue next year.
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