Government turns tide on child poverty in UK

Nearly half a million children will be lifted from poverty following the government’s decision to scrap the two-child limit in this year’s delayed Autumn Budget – pulling 450,000 children out of poverty and further bolstering the government’s mission to break down barriers to opportunity across the country.

Taken alongside other measures announced this year, around 550,000 children will be lifted out of poverty by this government, the largest expected reduction in child poverty over a Parliament since records began.

The two-child limit has – described by the PM as a “failed social experiment” – been one of the biggest drivers of hardship since its introduction in 2017. Around 300,000 children are in poverty directly because of this policy, equivalent to 109 children pushed into hardship every day. Without intervention, 150,000 more would have fallen into poverty.

Children growing up in poverty are far more likely to miss out on the skills and opportunities that lead to secure, well-paid jobs—holding back both their future prospects and economic growth. Tackling child poverty is an investment in Britain’s future: building a stronger economy, unlocking opportunity, and reducing long-term dependency on welfare.

The Chancellor has also confirmed plans to remove the vile ‘rape clause’ policy from the statute book, so women no longer need to suffer the indignity of proving if their child has been conceived non-consensually to access support.

Removing the cap is the most cost-effective way to reduce child poverty during this Parliament, and scrapping the limit lifts more children out of poverty than any other single policy. The cost of removing the two-child limit will pay for itself many times over by reducing long-term costs of poverty, including poorer health, lower educational attainment, and wasted potential.

It will also make a real difference for ordinary working families on Universal Credit – helping cover the cost of essentials like food, heating, and clothing instead of forcing families to struggle and punishing children simply because of the size of their family.

With 4.5 million children currently living in relative poverty, a typical classroom of 30 children will have around 10 experiencing poverty. Child poverty has a stark impact on education – with children from the lowest-income families less likely to get good GCSEs and twice as likely to be persistently absent than their better-off peers.

Ending the two-child limit comes as part of the government’s wider child poverty strategy, which will be published in the coming weeks, setting out action to boost family incomes, cut the cost of essentials, and strengthen local support services.

Tackling child poverty is central to the government’s plan for national renewal—delivering security, opportunity, and respect for every family and community. By ending the two-child limit, the government is rejecting the failed policies of the past and putting fairness back at the heart of our welfare system, ensuring support is based on need—not arbitrary limits.

Prime Minister Keir Starmer said:

“This government is picking up the tab for a failed social experiment which has punished working families and directly pushed hundreds of thousands of children into poverty. We’re not going to stand by and let more children needlessly be dragged into hardship.

“The record highs of child poverty in this country aren’t just numbers on a spreadsheet— they mean millions of children are going to bed hungry, falling behind at school, and growing up believing that a better future is out of reach despite their parents doing everything right. That is a moral failure and an economic disaster. That is what those defending this policy are standing for.

“We cannot afford to pay the price of inaction. Every pound we spend lifting children out of poverty saves more money in the future that would otherwise be spent dealing with the lasting scars of child poverty in adulthood—whether that’s poor health, dependency on welfare, or struggling to find and keep a decent job.

“This isn’t just the right thing to do—it is an investment in Britain’s future. By putting fairness back at the heart of our social security system, we will give every child the best start in life.”