The Labour government’s most urgent “moral mission” is to reduce child poverty across the UK, Education Secretary Bridget Phillipson declared, signalling the strongest indication yet that ministers are seriously considering scrapping the controversial two-child benefit limit.

Speaking on behalf of the government, Phillipson addressed longstanding concerns from campaigners and anti-poverty organisations. “We hear them … We want to make this change happen, and it will be the moral mission of this Labour government to ensure that fewer children grow up in poverty,” she said.

Introduced by the Conservatives in 2017, the two-child benefit limit prevents parents from claiming child tax credit or Universal Credit for more than two children. The policy has come under increasing scrutiny for its impact on low-income families, with charities describing it as a key driver of poverty. Recent research suggests that roughly 100 children are pulled into poverty each day due to the restriction, an estimated 20,000 children over six months.

Phillipson, who co-chairs the government’s child poverty taskforce, said any decision would weigh the significant costs involved, which are estimated to be around £3.5 billion. Still, she argued that the long-term consequences of doing nothing would prove even more costly.“It’s why I’m in politics. It’s what this Labour government is all about. We will make different decisions to support children and families,” Phillipson stressed.

“That is the moral purpose of this Labour government. We are determined to bring down the number of children growing up in poverty. I know the impact it has. I’ve experienced it myself growing up. So it’s really personal to me.”
Bridget Phillipson

The education secretary noted that while eliminating the benefit cap remains a key consideration, it is not the only solution. She highlighted existing government initiatives, such as expanded access to funded childcare, cheaper school uniforms, and breakfast clubs, as steps already being taken to improve life for struggling families. She also pointed to the importance of enabling parents to work more hours.

Two-Child Benefit Limit Under Review

“I’ve always been clear that it’s on the table,” she said of the benefit cap.

“The price tag associated with this is big. But what I would also say, when it comes to the price tag, the cost of inaction is also incredibly high, because this scars the life chances of children in our country.
“They are not changes that a Labour government would ever have introduced. But seeking to unwind that and to change the social security system is not easy, and it costs a lot of money, and we’ve got to get this right.”
Bridget Phillipson

Her comments coincided with reports that Reform UK leader Nigel Farage is expected to support scrapping the two-child limit, putting both his party and Labour in a rare alignment. However, the Conservative Party has criticised both for entertaining the idea, arguing that benefit policy should reinforce personal responsibility in family planning.

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Phillipson pushed back on that line of reasoning. “I’ve had conversations with people I represent, with constituents who made perfectly reasonable and rational decisions to have a number of children, to have three children, say, and something terrible happens in their lives,” she explained.

“In the case of one constituent I met, they lost their partner who died unexpectedly, and they then find themselves unable to access the full support that they had anticipated for their whole family, even when they made what was a perfectly reasonable choice around family size.”
Bridget Phillipson

Phillipson dismissed claims that the cap has meaningfully influenced family planning, saying the policy has “actually haven’t had an impact on the decisions that people are making around family size, all it has done is pushed more children into poverty.”

She concluded by reaffirming Labour’s commitment to reform: “It’s not the only way that we can make change happen. It’s crucial that we consider it … there are lots of ways we can do this, but the commitment that I will give to you … is that this Labour government is determined to ensure that fewer children grow up in poverty, and we will do what is necessary to make that a reality.”