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How does the two-child limit affect child poverty rates?
The two-child limit, introduced in 2017, restricts benefits for families with more than two children. According to the Institute for Fiscal Studies, this policy has contributed to a significant rise in child poverty, particularly among larger families. If the limit were abolished, it is estimated that around 540,000 children could be lifted out of absolute poverty.
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What are the potential benefits of abolishing the two-child limit?
Abolishing the two-child limit could provide substantial financial relief to families with more than two children. The Institute for Fiscal Studies suggests that scrapping this policy could lift approximately 620,000 children out of poverty, making it a cost-effective approach to reducing child poverty, despite the estimated annual cost of over £3 billion.
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How many children could be lifted out of poverty if the policy changes?
If the two-child limit were reversed, estimates indicate that around 620,000 children could be lifted out of poverty. This figure highlights the potential impact of policy changes on improving the living conditions of vulnerable families in the UK.
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What are the financial implications of changing child benefit policies?
Changing child benefit policies, particularly abolishing the two-child limit, would have significant financial implications. The estimated cost of reversing this policy is over £3 billion annually. However, proponents argue that the long-term benefits of reducing child poverty could outweigh these costs, leading to a healthier economy and society.
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Why is the government hesitant to change the two-child limit?
The government has cited spending controls as a primary barrier to changing the two-child limit. Any alterations to this policy would need to align with economic growth, reflecting a broader debate on welfare reform and fiscal responsibility. This hesitation underscores the complexities involved in addressing child poverty through policy changes.