The upcoming month will see the number of children in working families impacted by the two-child limit reaching a million, with concerns raised by campaigners about parents facing severe financial pressures.
A recent analysis conducted by the Child Poverty Action Group (CPAG) using DWP statistics revealed that 59% of families affected by the two-child limit are employed. The majority of those not working are exempt due to having young children, or being ill or disabled.
For instance, a single parent with three children who works full-time at the minimum wage falls £4,500 below the poverty line due to the two-child limit. Eliminating this policy would reduce the shortfall to £1,000 annually.
Similarly, a family with three children affected by the limit, where one parent works full-time and the other part-time at minimum wage, currently faces a £2,000 deficit below the poverty line. Abolishing the policy would lift them to being £1,500 above the poverty line.
Pressure mounts on the Government to reconsider the two-child limit as part of the upcoming child poverty strategy, as abolishing this policy is seen as the most cost-effective means of tackling child poverty. CPAG estimates that scrapping the policy could lift 350,000 children out of poverty and alleviate poverty levels for many more, at an estimated cost of £2 billion.
Alison Garnham, Chief Executive of CPAG, emphasized the challenges faced by families due to the two-child limit, urging the Government to address the issue in the child poverty strategy to prevent a rise in child poverty levels.
In response, a Government spokesperson highlighted the commitment to providing every child with equal opportunities, citing investments in child development programs, free school meals expansion, and a crisis support package to address poverty-related issues.