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What does the abolition of the two-child benefit cap mean for families in the UK?
The abolition of the two-child benefit cap means that families can now receive child tax credits and universal credit for more than two children without facing reductions. This change aims to reduce child poverty and support larger families, especially those who have been affected by the previous cap since 2017.
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How will lifting the benefit cap affect child poverty rates?
Lifting the benefit cap is expected to lift around 450,000 children out of poverty by removing restrictions on child benefits for larger families. This move is seen as a step toward greater fairness and support for vulnerable families, potentially reducing the overall child poverty rate in the UK.
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What new taxes are funding the benefit cap repeal?
The policy is funded through new taxes, including a gambling levy and a mansion tax. These measures are designed to generate revenue to support the increased welfare spending and ensure the policy's sustainability.
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When will the new policy take effect and who benefits most?
The abolition of the two-child benefit cap will take effect from April 2026. The families who benefit most are those with three or more children, particularly lower-income households, who will now receive full support for their children’s welfare without restrictions.
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Why was the two-child benefit cap introduced in the first place?
The cap was introduced in 2017 by the Conservative government to reduce public spending on welfare. It limited child tax credits and universal credit to the first two children in a family, with the aim of encouraging smaller families and reducing government expenditure.
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Are there any criticisms or concerns about removing the cap?
Some critics argue that removing the cap could increase government spending and impact public finances. Others worry it might encourage larger families without addressing underlying issues like poverty and access to support. However, many see it as a necessary step to support vulnerable families and reduce child hardship.