UK reforms reimpose benefit cap on two children

Reform Britain has been phasing out some costly policies in an effort to reassure voters and financial markets of the credibility of its economic policies.

As a result, some of the party’s more radical positions, such as a pledge to deliver tax cuts worth £90 billion a year, have been abandoned, and it has become more aligned with Labor and the Conservative Party on economic policy.

Repealing the cap was seen as a strong vote-winner for Reform Britain, with government figures showing the majority of households affected by the policy were in work.

Pressure was mounting on Chancellor Rachel Reeves to scrap the cap, with Labor MPs and charities arguing it was the most cost-effective way to reduce child poverty.

The government estimates that this measure will result in 450,000 fewer children falling into relative poverty by 2029-30.

But the Conservative Party, from which Mr Jenrick recently left, criticized Labour’s decision to scrap the cap, arguing that people on benefits must make the same economic choices about having children as everyone else.

Reform UK’s pledge to restore the cap would close off its political line of attack and draw a rift with Labor.

“We are the party of Alarm Clock Britain,” Mr Jenrick said. “We are the party of workers, not the party of welfare.”

Prime Minister Keir Starmer said Mr Jenrick’s announcement about the two-child allowance cap was “disgraceful”.

“The reforms hope to push hundreds of thousands of children into poverty,” he added.

Sir Mel Stride, the Conservative shadow chancellor, said the reforms would “completely destroy our public finances and leave Britain with huge deficits and mounting debt”.

“It was the reformers who last year promised to remove the cap on the two-child allowance, so can we even trust their savings?” Sir Mel said.

“The talk of reform changes by the day, but the numbers just don’t add up.”

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