New figures reveal huge number of North East children and families to benefit from scrapping 2 child benefit cap

“This Labour Government came into office pledging to tackle child poverty and that’s exactly what we’re doing”

The words of Sunderland MP and Secretary of State for Education Bridget Phillipson after the latest figures show over 67,000 children are set to benefit following the Government’s decision to scrap the two child limit on child benefit.

Sunderland MP Bridget Phillipson said scrapping the two child benefit cap will benefit over 18,000 North East families.placeholder image
Sunderland MP Bridget Phillipson said scrapping the two child benefit cap will benefit over 18,000 North East families. | PA/Iconic

The chancellor Rachel Reeves announced in her budget that the two child limit was to be scrapped meaning families will now receive child benefit payments for any additional children.

Research carried out by the Labour Party has revealed the policy will now mean 18,410 families across the North East will be better off.

The majority of families hit by the two-child limit have at least one parent in work. Scrapping the limit will therefore primarily support households who are working but are on a low incomes and in need of additional support.

Ms Phillipson said: “This Labour Government came into office pledging to tackle child poverty and that’s exactly what we’re doing.

“I’m proud that Labour is scrapping the cruel two-child limit. It's a policy that has imposed hardship on the children of parents who go out to work to provide as much as they can for their families.

"Because of Labour's action, 18,410 families in the North East will have more money in their pockets, with 67,580 more children growing up in households with the means to meet their needs.”

The move has also been supported by North East mayor Kim McGuinness.

Ms McGuinness said: “Scrapping the two-child cap is a major victory in our fight to end child poverty in the North East. I lobbied hard to end the cap that pushed families into poverty and stifled opportunity, so I’m delighted it’s being removed.

"This will change the lives of tens of thousands of North East children and help us to make sure every child has the best possible start in life, making our £30m child poverty action plan even more impactful.”

Speaking ahead of the budget, Conservative Party leader Kemi Badenoch said if the Tories came into power they would reverse the decision and reinstate the two child limit.

Reform UK leader Nigel Farage said they would only remove the cap for “working British people, meaning a couple who both work 37.5 hours a week”.

Ms Phillipson said: “The Reform-Tory Child Poverty Pact would wipe out this progress. It is a plan to punish parents who work hard and do the right thing, and it would plunge hundreds of thousands back into poverty.”

Ms McGuinness added: “The support for this cruel cap by the Tories and Reform shows they're not backing our working families.”

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