A cross-party commission has urged the UK government to abolish the controversial two-child benefit limit, describing it as a central step in a “once in a generation” strategy to lift millions out of poverty.
The Poverty Strategy Commission, which includes former welfare ministers and policy advisers from across the political spectrum, said the government must commit billions of pounds in investment to reverse record levels of poverty. Central recommendations include increasing universal credit and scrapping the two-child limit, which currently denies families £3,500 a year for each third and subsequent child.
Millions Could Escape Poverty
The commission estimated that its proposals would lift 4.2 million people out of poverty, including 2.2 million in “deep poverty”—households surviving on less than 50% of the poverty line, equivalent to just £11,013 a year for a single parent with two children. Latest figures show that 1.7 million children live in households affected by the two-child policy.
The Cost and the Social Contract
Abolishing the two-child limit would form part of a broader “basic minimum” safety net costing an additional £12.5 billion annually. Under a proposed new “social contract,” citizens on benefits would be guaranteed protection from deep poverty in return for commitments to seek work, increase hours, or move into higher-paid jobs.
Broad Political Backing
Commission members include Labour figures such as Sir Stephen Timms and Miatta Fahnbulleh, as well as Conservative peers like Philippa Stroud and former Tory welfare secretary Stephen Crabb. Liberal Democrat David Laws is also a member, reflecting a rare cross-party consensus.
Criticism of Government’s Current Approach
The final report strongly criticized recent government attempts to cut £5 billion from disability benefits, warning such measures would have driven 250,000 disabled people deeper into poverty. Commission member Helen Barnard of the Trussell Trust warned that severe hardship was pushing more families to food banks, with long-term consequences for the economy and public services.
Government Response
A government spokesperson defended its policies, saying ministers remain determined to “drive down poverty” while reforming jobcentres and supporting families with measures such as extended free school meals and a £1 billion crisis support package. The government is expected to release its own child poverty reduction strategy soon.
