Chancellor Reeves to end two-child benefit cap, costing £3B, lifting 630K children out of poverty.

Chancellor Rachel Reeves is set to abolish the two-child benefit cap in her upcoming Budget, ending a 2017 austerity measure aimed at reducing child poverty. The move, costing £3 billion, is expected to lift 630,000 children out of absolute poverty and eliminate the “rape clause” that restricted benefits for children conceived through rape. The government argues the policy harms long-term outcomes, including education and earnings, and that ending it is both fair and economically sound. While public opinion leans toward cutting spending over raising taxes, Reeves emphasizes fiscal responsibility, framing the change as a moral and economic necessity to combat intergenerational poverty.