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flag UK Labour government postpones scrapping two-child benefit cap due to increased borrowing.

UK Labour government will not scrap the two-child benefit cap in the October budget due to increased government borrowing. The cap, which restricts financial support to families with more than two children, would bring an annual cost of £2-£3bn, which the government cannot afford amid heightened borrowing. The government faces a borrowing increase of £4.7bn more than projected for the fiscal year. Despite charities pushing for the cap's removal as the simplest way to lift children out of poverty, the Labour government is focused on managing public finances and delivering support within available resources.

8 months ago
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