Reeves suggests benefit limits on larger families to be lifted

""I don't think that it's right that a child is penalised because they are in a bigger family, through no fault of their own," she added. "And so we will take action on child poverty. The last Labour government proudly reduced child poverty, and we will reduce child poverty as well.""

""It would of course be possible to stick with the manifesto commitments. But that would require things like deep cuts in capital spending," she added. "What I promised during the election campaign was to bring stability back to our economy. What I can promise now is I will always do what I think is right for our country. Not the politically easy choice, but the things that I think are necessary to put our country on the right path.""

Plans favour removing the two-child limit on working-age benefits to prevent children in larger families being penalised and to reduce child poverty. Some MPs advocate a full reversal; officials have considered tapering benefits so parents receive most for the first child and less for subsequent children, or limiting additional payments to three or four children. Treasury analysis warned keeping manifesto commitments would require deep cuts in capital spending. The government signalled willingness to break the pledge not to raise income tax, VAT or National Insurance to restore economic stability and take necessary fiscal actions.

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