Thousands more children have fallen into poverty since Labor came to power because of a two-child cap on child benefit, according to a charity

According to an analysis by a charity that has called for the abolition of the rule, around 10,000 children have been pushed into poverty by the two-child limit since Labor took office.

Chancellor Rachel Reeves said she could not abandon controversial social policy because of the state of public finances, but continued to face pressure from campaigners and some of her own MPs to do so.

As Parliament returns on Monday after a break for political party conferences, the Child Poverty Action Group (CPAG) said its analysis “shows that 10,000 children have been dragged into poverty by the two-child limit since the government took office in early July.” “.

The policy introduced by David Cameron’s Conservative government has already impacted 450,000 households and 1.6 million children last year, according to official figures. The limit means that parents can only receive a higher child tax credit or a universal tax credit for a third child if the child was born before April 6, 2017.

Alison Garnham, chief executive of CPAG, said: “The clock is ticking as child poverty rises – and the two-child limit is the main reason for the rise.” Abolishing it is the most cost-effective way to prevent child poverty under the watchful eye Government is pushing even more children into poverty.

“We welcome the government’s taskforce on child poverty, but the damage is growing by the day – the policy must be scrapped in the coming budget.”

The taskforce, made up of ministers from across government, is expected to publish its strategy in spring 2025.

The Joseph Rowntree Foundation (JRF), a social change organization, said the CPAG figures “are a reminder that need is not on hold” and called on the government to deliver a plan in the autumn.

Katie Schmuecker, JRF principal policy advisor, said: “Not only is this the morally right thing to do, it will also help create greater economic security for households, ease some pressure on public services and strengthen our economy.”

The two-child limit was first announced by the Conservatives in 2015 and came into effect in 2017. It limits the child tax credit and the universal tax credit in most households to the first two children.

Recent research from a think tank estimated that lifting the two-child limit would lift 540,000 children out of absolute poverty.

The Institute for Fiscal Studies (IFS) said this would initially cost the government £1.7 billion a year, rising to £2.5 billion a year.

The IFS said: “Among the options available to the government in the area of ​​performance policy, removing the two-child limit would be the single most cost-effective measure to reduce the number of children considered to be in poverty.”

However, it warned that any gains from scrapping the policy would be partially or completely wiped out for 70,000 of the poorest households, which would either be newly subject to the benefit cap or others whose benefits would not change as a result.

The benefit cap, introduced in 2013 under the then Conservative-Liberal Democrat coalition government to “restore fairness to the welfare state”, will see the amount of benefits a household receives cut to ensure claimants no longer have to as the upper limit received limit.

Some activists have called for both policies to be scrapped.

A government spokesman said: “No child should be in poverty – that’s why our new cross-government taskforce is developing an ambitious strategy to reduce child poverty and give children the best start in life.”

“In addition, we have expanded the Household Support Fund to support the most vulnerable with essentials this winter and have committed to reviewing Universal Credit as we deliver on our plan to tackle inequality and make work pay.”