THE government will not rule out scrapping the two-child benefit cap during this term, The Sun understands.
It comes as a new Department for Work and Pensions (DWP) report shows that 1.6million children are now missing out on up to £288 a month in extra support.
This means 100,000 more children are affected by the cap compared to last year.
The cap limits the amount of financial support families can receive to just two kids, so parents can’t claim the child elements of Universal Credit or tax credits worth up to £3,455 per year for third or subsequent children born after April 2017.
Child Poverty Action Group says that scrapping the two-child limit would lift 300,000 children out of poverty and mean 700,000 children are in less deep poverty.
Sir Keir Starmer said before the general election that his government would not be able to afford to scrap the cap if it won the election.
The Institute of Fiscal Studies has previously said that removing it would cost £3.4billion a year.
But government insiders have now told The Sun the government will consider removing the cap when it can afford to do so, and they refused to rule out scrapping it during this term.
Alison Garnham, chief executive of Child Poverty Action Group, said: “The PM came to office pledging a bold, ambitious child poverty-reduction plan and there’s no way to deliver on that promise without scrapping the two-child limit, and fast.”
Work and Pensions Secretary of State Liz Kendall is meeting with charities next week to discuss how to reduce child poverty rates.
She said today: “Too many children are growing up in poverty and this is a stain on our society.
“We will work to give every child the best start in life by delivering our manifesto commitment to implement an ambitious strategy to reduce child poverty.
“I will hold critical meetings with charities and experts next week to get this urgent work under way.”
Sir Keir Starmer has faced pressure from inside his party to commit to scrapping the policy.
Deputy Prime Minister Angela Rayner has previously called the cap “inhumane”.
Around 59% of families affected by the policy contain at least one working parent.
Alison Garnham added: “Children are losing their life chances to the two-child limit now – they can’t wait for the new government to align every star before the policy is scrapped.
“This is not the time for procrastination or prevarication.”
Benefits charity Turn2us has also called on the Prime Minister to abolish what it calls a “punitive policy”.
THE two-child benefit cap means that you can only get more child tax credit or Universal Credit for your third (or more) child if:
You qualify for an exception or special circumstances for each third (or subsequent) child if:
You may be able to get free childcare for your child aged nine months to four years old if you live in England.
The number of hours working parents can claim depends on the age of their child.
If your child is:
From September 2025, children aged nine months to two years old will qualify for 30 hours per week of free childcare
To qualify, you’ll need to earn at least the equivalent of the national minimum wage for 16 hours a week.
Both parents will need to earn the equivalent of at least £166 per week, each with a taxable income of no more than £100,000.
Your two-year-old can also get free childcare if you live in England and get any of the following benefits:
Parents on Universal Credit and in a paid job can have up to 85% of their childcare costs covered, up to £1,014.63 a month for one child and £1,739.37 a month for two or more children.
It doesn’t matter how many hours you work.
If you live with a partner, you both need to work to qualify.
You usually have to pay for the childcare and claim back the costs, but if you go back to work or increase your hours you can request for the money to be paid upfront.
You can get child benefit if you’re responsible for a child aged under 16, or if they are under 20 and in approved education or training.
Child benefit is currently worth £25.60 a week for the eldest child or only child. For each subsequent child, parents get £16.95 a week.
The cash is paid every four weeks and there’s no limit to how many children you can apply for.
Bear in mind though, that those who earn more than £60,000 a year have to start paying back some of their child benefit through the High Income Child Benefit Charge (HICBC).
If you or your partner earns £80,000 or more, you have to pay all your entitlement back.
You have to pay the HICBC to HMRC through self-assessment.
Child benefit is worth up to £1,331 a year for your first or only child and up to £881 a year for additional children.
This works out at £102.40 every four weeks or £25.60 a week for your first child and £67.80 every 4 weeks or £16.95 a week for their siblings.
There is no limit on the number of children that can be claimed for.
Applying is straightforward and can be done in minutes at gov.uk or through the HMRC app.
Parents with a newborn baby should make a claim online as soon as possible and could then receive their first payment in as little as three days.
You can also backdate claims for up to three months.
Parents can make a claim and then choose to opt out of receiving Child Benefit payments can still receive National Insurance credits if one parent is not working.
National Insurance credits build up your entitlement to the state pension.
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