The UK government is considering new measures to tackle child poverty, including the potential lifting of the two-child benefit cap. With the upcoming Budget announcement on November 26, 2025, many are wondering what changes might be on the horizon. In this page, we explore the latest proposals, political responses, and what they could mean for families across the UK.
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What new measures is the UK government considering to reduce child poverty?
The UK government is planning to introduce measures aimed at reducing child poverty, with a focus on lifting the two-child benefit cap. This cap currently limits child tax credits and universal credit to the first two children in most households. The government’s move follows pressure from opposition parties and social advocates who argue that removing the cap could significantly help struggling families.
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Could lifting the two-child benefit cap help families?
Yes, removing the two-child benefit cap could help many families by increasing their financial support. Estimates suggest that lifting the cap could lift around 630,000 children out of poverty, providing them with better access to essentials like food, housing, and education. However, this change would come at a significant cost to the government’s budget.
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When will the UK Budget be announced and what might it include?
The UK Budget is scheduled to be announced on November 26, 2025. While the full details are yet to be revealed, many expect the government to include measures aimed at addressing child poverty, such as lifting the benefit cap, increased social spending, or new tax policies to fund these initiatives.
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How are opposition parties responding to these proposals?
Opposition parties, especially Labour, are strongly advocating for the removal of the two-child benefit cap. Labour’s leader and figures like Gordon Brown have called for policies that support low-income families, including a proposed tax on gambling companies to fund social programs. The political debate is intense, with public opinion also playing a role in shaping the discussion.
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What is the background of the two-child benefit cap?
Introduced in 2017 by the Conservative government, the two-child benefit cap restricts child tax credits and universal credit to the first two children in most households. Critics argue that this policy disproportionately affects low-income families and contributes to child poverty, prompting ongoing calls for its removal or reform.
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Will lifting the benefit cap cost the government a lot of money?
Yes, removing the cap is estimated to cost around £33.6 billion. While this would provide significant support to families in need, it raises questions about how to fund such measures within the UK’s economic constraints. The government will need to balance social priorities with fiscal responsibility.