Scrapping the two child limit will support 8,210 children in Lewisham, part of a national shift lifting 450,000 children out of poverty and more than half a million when combined with wider measures. Lewisham has some of the highest levels of child poverty in the country, particularly in Deptford, New Cross, Catford, Downham, Bellingham and parts of Lewisham Central. Rising housing costs, insecure employment and sharp increases in household bills have placed enormous pressure on local working families. Removing the limit will provide immediate and meaningful relief.
Schools, nurseries and community services across the borough report rising levels of hunger, overcrowded housing, mental health strain and widening gaps in early development and attainment. Expanded Free School Meals, universal breakfast clubs and major early years investment will help reduce these pressures alongside ending what the Prime Minister has described as a failed social experiment.
- 450,000 children lifted out of poverty in landmark move to scrap two child limit, rising to over half a million alongside other measures which is the largest expected reduction in child poverty over a Parliament
- Free breakfast clubs and extended Free School Meals to transform life chances for one in three children experiencing poverty in every classroom
- Record investment in early years beginning to deliver a better start as new data shows green shoots in plans to get thousands more children school ready
- Comes as child poverty reaches a historic high with 4.5 million children in relative poverty while three in four children in poverty have at least one parent in work
Nearly half a million more children will be lifted from poverty following the government’s decision to scrap the two child limit in this year’s Budget which removes 450,000 children from hardship and strengthens efforts to break down barriers to opportunity across the country.
Taken together with other measures announced this year around 550,000 children will be lifted out of poverty by this government which is the largest expected reduction in a single Parliament since records began.
The two child limit which the Prime Minister has called a failed social experiment has driven hardship since its introduction in 2017. Around 300,000 children are in poverty directly because of the policy which amounts to 109 children pushed into hardship every day. Without action another 150,000 would have fallen into poverty.
Children growing up in poverty are far more likely to miss out on the skills and opportunities needed for secure well paid work which holds back both their long term prospects and economic growth. Tackling child poverty is an investment in Britain’s future by strengthening the economy, widening opportunity and reducing long term reliance on public services.
The Chancellor has confirmed that the rape clause policy will be removed from the statute book so women are no longer forced to prove that a child was conceived through sexual violence in order to receive support.
Removing the cap is the most cost effective way to reduce child poverty during this Parliament and lifts more children out of hardship than any other single intervention. The benefits for health, education and productivity will outweigh the costs many times over.
The change will also directly support working families on Universal Credit by helping them cover essential costs such as food, heating and clothing rather than punishing children based on family size.
With 4.5 million children living in relative poverty a typical thirty pupil class will contain around ten living in hardship. The educational impact is stark. Children from the lowest income families are less likely to achieve strong GCSEs and twice as likely to be persistently absent as their better off classmates.
Ending the two child limit is part of the government’s wider child poverty strategy to be published in the coming weeks which will set out further actions to lift family incomes, cut everyday costs and strengthen local support services.
Tackling child poverty is central to the government’s plan for national renewal by delivering security, opportunity and respect for every family. By ending the two child limit the government is rejecting the failed policies of the past and putting fairness at the heart of the social security system with support based on need rather than arbitrary caps.
Prime Minister Keir Starmer said:
“This government is picking up the tab for a failed social experiment that punished working families and pushed hundreds of thousands of children into poverty. We will not stand by while more children are dragged into hardship.
“These record levels of child poverty are not statistics. They mean children in Lewisham going to bed hungry, falling behind at school and growing up believing that a better future is out of reach despite their parents’ best efforts. That is both a moral failure and an economic disaster.
“Every pound we invest in lifting children out of poverty avoids far higher long term costs from pressure on public services, lost economic potential and reduced life chances.
“This is the right thing to do and an investment in Britain’s future. Fairness must sit at the heart of our social security system so every child gets the opportunity they deserve.”
Education Secretary and co chair of the Ministerial Taskforce on child poverty Bridget Phillipson said:
“The evidence could not be clearer. Poverty has blocked opportunity for far too many children for far too long.
“We are removing the two child limit and the cruel rape clause to restore dignity to families which means more teachers focused on teaching and more children able to focus on learning.
“We are showing every child that their background or birth order will not define their future.”
Children living in overcrowded or unstable housing, without reliable access to food, are not arriving at school ready to learn, forcing schools to divert resources and slowing progress for entire classes. By age five children eligible for Free School Meals are already five months behind and by the end of secondary school the gap has widened to nineteen months.
With teachers reporting that more pupils are struggling to concentrate the government is addressing the issue at its root. Ending the two child limit is the single biggest contributor to current child poverty levels and restores fairness and dignity to families.
Chancellor of the Exchequer Rachel Reeves said:
“Every child deserves an equal chance to fulfil their potential and for every child who grows up in poverty the whole country pays the price.
“When children go hungry or cold, talent is lost and Britain loses out. I am proud that we will lift more children out of poverty in a single Parliament than any government since records began.”
Dan Paskins, Executive Director of UK Impact at Save the Children UK, said:
“The Government is right to recognise that children have paid the price of a flawed policy for far too long. This change will have an immediate impact and shows leadership.
“With most children in poverty living in working families reducing hardship now will improve educational outcomes and boost the country’s long term economic strength.”
Mark Russell, Chief Executive, The Children’s Society, said:
“Removing the two child limit is a landmark moment for children. Families who have been pushed to the brink will feel immediate relief. It is a bold and welcome decision.”
Alison Garnham, CEO, Child Poverty Action Group, said:
“Lifting children out of poverty is morally right and strengthens our country. This step brings us closer to a future where no child grows up in hardship.”
Following the expansion of breakfast clubs, Free School Meals, Best Start Family Hubs and major childcare investment this is the latest transformative measure improving children’s life chances and saving families thousands each year.
Government data now shows early signs of improvement toward the target of seventy five percent of children being school ready by age five by 2028. This year 68.3 percent reached a good level of development compared with 67.7 percent last year and 65.2 percent following the pandemic.
Further progress is expected next year as Best Start Family Hubs reach every area by April and nine billion pounds of childcare investment expands access to thirty hours of funded childcare which can save families up to 7,500 pounds annually.
The Early Years Pupil Premium has risen by forty five percent from 388 pounds to 570 pounds which gives early years settings more resources to support disadvantaged children when development gaps first emerge.
The government has also raised the National Living Wage above twelve pounds an hour, strengthened employment protections through the Employment Rights Bill and launched the Get Britain Working plan backed by 3.5 billion pounds to reduce economic inactivity.
But with nearly three quarters of children in poverty living in working families employment alone cannot solve the problem. The upcoming child poverty strategy will outline a full system wide approach to tackling the underlying drivers of hardship.