How Welfare Changes Are Making Life Tougher for Families
The government's recent change of heart on welfare reforms has put a wrench in the works for future spending decisions.
Education Secretary's Stance
Education Secretary Bridget Phillipson didn't promise to eliminate the two-child benefit limit, stating it would be expensive. However, she did say the government is looking at all options to help families in need.
Impact of the Two-Child Benefit Cap
- Affects: About 1.6 million kids
- Potential Cost: £3.4 billion a year to eliminate
- Potential Benefit: Could help half a million children escape poverty
Government's Approach
Phillipson mentioned that the recent welfare U-turn makes future decisions harder, but the government is still working on ways to reduce child poverty.
Taskforce on Child Poverty
- Leaders: Bridget Phillipson and Work and Pensions Secretary Liz Kendall
- Focus: Different policies, including the benefit cap
- Background: Set up last year due to pressure to scrap the cap
Chancellor's Warning
Chancellor Rachel Reeves has said she's not committed to any one policy to fight child poverty. She warned that tax hikes might be needed and that the welfare U-turn has financial consequences.
Political Pressure
The government's backtracking on welfare cuts has left some Labour MPs unhappy. They had pushed hard against the planned cuts. Now, with the savings from those cuts delayed or lost, the government has to find other ways to help families struggling with the cost of living.