A recent report from the Resolution Foundation has highlighted the detrimental impact of the two-child benefit cap on child poverty in various regions of the UK. The policy, introduced by the previous Conservative government, restricts child tax credit and universal credit to the first two children in most households. This has left almost half of all children in cities like Birmingham, Tower Hamlets, Manchester, and others living below the poverty line.
Opposition leaders, including Labour’s Keir Starmer, have been urged to abolish the policy, which affects around 1.6 million children and is considered the biggest driver of child poverty in the UK. The cost of abolishing the policy is estimated to be between £2.5bn and £3.6bn this year.
The report also notes that regional inequalities have been exacerbated by the policy, with regions in the north-west of England and the West Midlands being hit the hardest. Areas with larger families, particularly with three or more children, are experiencing higher levels of relative poverty.
As far-right populists exploit economic divisions amidst widespread rioting, there is a growing need to address these issues. Trade union leaders, like Unite’s general secretary Sharon Graham, have called for urgent action to tackle rampant inequality in the country.
The government has responded by highlighting their new cross-government taskforce to develop an ambitious child poverty strategy, as well as plans to introduce free breakfast clubs in all primary schools. However, experts argue that more needs to be done to address regional economic disparities and improve living standards across the UK.
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