UK Scraps Two-Child Welfare Cap to Combat Child Poverty

UK's finance minister announces removal of two-child welfare cap, effective April, costing 3.1 billion pounds by 2029-30 to alleviate child poverty. The move, although opposed by 59% of the public, is seen as a lifeline for low-income families by lifting 450,000 children out of poverty.

In a move set to battle child poverty in Britain, Finance Minister Rachel Reeves announced the abolition of the two-child cap on welfare payments, effective next April.

The policy shift is predicted to cost the government 3.1 billion pounds by 2029-30, but Reeves argues it's necessary to lift 450,000 children out of poverty. The cap, introduced in 2017 by the Conservatives, limited benefits to larger families, a measure deemed punitive by many within Reeves' Labour Party.

Despite significant public support for retaining the cap, the policy's removal will provide financial relief to 560,000 families, enhancing yearly benefits by over 5,310 pounds per family. This change promises significant impact amid rising childcare and living costs.

(With inputs from agencies.)