UK's Bold Move to Combat Child Poverty

British Prime Minister Keir Starmer hinted that upcoming measures to reduce child poverty may include scrapping the two-child limit on welfare payments. This policy change could cost 3 billion pounds annually and potentially lift 500,000 children from absolute poverty. Finance Minister Rachel Reeves supports this reform.

British Prime Minister Keir Starmer has signaled forthcoming measures aimed at reducing child poverty, including the potential removal of the two-child welfare payment limit. This change could be announced in the upcoming November 26 budget.

The Institute for Fiscal Studies (IFS) estimates that eliminating the cap could cost approximately 3 billion pounds annually. By doing so, the policy could alleviate the poverty status of about 500,000 children currently living in absolute poverty.

Finance Minister Rachel Reeves has publicly supported this reform, emphasizing that children should not face financial penalties due to family size. Reeves is also preparing to introduce a rise in personal taxation as part of the upcoming budget measures.

(With inputs from agencies.)