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Saturday, December 6, 2025

Chancellor Must Use Budget to Scrap Two-Child Limit

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The SNP has urged Chancellor Rachel Reeves to use her upcoming Budget to fully scrap the two-child benefit limit, warning that “there is no room for another Labour fudge.”

It follows reports in the i newspaper suggesting the Labour Government is considering only “softening” the Tory-era policy, possibly by introducing a taper or lifting the cap for working parents rather than abolishing it altogether.

Under First Minister John Swinney’s leadership, the Scottish Government has already committed to effectively abolishing the two-child cap from March next year.

Meanwhile, after more than a year in power, Keir Starmer’s Labour Government has yet to publish its long-delayed Child Poverty Strategy, originally due in the spring.

Trade union leaders, including TUC General Secretary Paul Nowak, are expected to press the Chancellor to lift the cap when they meet with her today.

The policy, introduced by the Conservatives in 2017, restricts Child Tax Credit and Universal Credit payments to the first two children in a household.

Critics say it punishes families already struggling with the cost of living crisis and disproportionately affects women.

A recent report by the Resolution Foundation found that fully scrapping the two-child limit could lift 330,000 children out of poverty immediately if Labour followed the Scottish Government’s lead.

SNP MSP Bob Doris said the Chancellor’s hesitation highlights a worrying lack of commitment to tackling child poverty.

“Since coming to power, Keir Starmer’s Labour Party has been all talk but no action when it comes to tackling child poverty,” he said.

“After nearly a year and a half in power we are still awaiting their delayed Child Poverty Strategy and now they appear set to fudge on promises to fully ditch the cruel two-child limit.”

Mr Doris said the UK Government should match Scotland’s example, where measures like the Scottish Child Payment, Best Start Grant and Baby Box have helped drive child poverty down.

“Completely scrapping the cruel cap, as the SNP is doing in Scotland, is the single biggest thing which Labour could do to help lift children out of poverty,” he said.

“But this is the bare minimum anyone should expect from a government that claims to be serious about ending child poverty.”

“Thanks to SNP policies such as the Scottish Child Payment, the Best Start Grant and the Baby Box, Scotland is the only part of the UK where child poverty is falling,” he added.

“The Labour Party’s failure to take similar action makes it clearer than ever that Scotland needs the fresh start of independence to create a wealthier and fairer country.”

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Joseph Kennedy
Joseph Kennedy
Joseph Kennedy is a senior writer and editor at The Highland Times. He covers politics, business, and community affairs across the Highlands and Islands. His reporting focuses on stories that matter to local people while placing them in a wider national and international context.
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