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 Bridget Phillipson didn't promise to eliminate the two-child benefit limit, saying it would be expensive. She did say the government is looking at all options to help families in need. The two-child benefit cap affects about 1. 6 million kids. Experts say getting rid of it could cost the government around £3. 4 billion a year. But it might also help half a million children escape poverty. Phillipson said the recent welfare U-turn makes future decisions harder, but the government is still working on ways to reduce child poverty.Phillipson and Work and Pensions Secretary Liz Kendall are leading a taskforce focused on child poverty. They're looking at different policies, including the benefit cap. The taskforce was set up last year when pressure was on to scrap the cap. Many Labour MPs still want to see it gone. 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. This puts extra pressure on Reeves as she prepares for the autumn budget. 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.