What is the two-child benefit cap? The policy explained as Reeves hints at changes

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"Labour is reportedly considering scrapping the two-child benefit cap following pressure from backbenchers, campaign groups and political opponents. Ahead of the Budget on 26 November, Rachel Reeves has given the strongest hint yet that Labour could abolish the controversial policy, saying she does not think it is right that children are penalised for being part of large families. Speaking on BBC 5Live, the chancellor said it was important not to let the costs to our economy in allowing child poverty to go unchecked. She added: In the end, a child should not be penalised because their parents don't have very much money."

Labour is reportedly considering scrapping the two-child benefit cap after pressure from backbenchers, campaign groups and political opponents. Chancellor Rachel Reeves has indicated the policy could be abolished, arguing that children should not be penalised for being part of large families and warning that unchecked child poverty carries economic costs. Reeves suggested action could come at the Budget on 26 November or through the delayed child poverty strategy due before the end of the year. The Treasury is understood to be exploring options to adjust the cap rather than remove it entirely, reflecting a balance between fiscal constraints and reducing child poverty.

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