Rishi Sunak's commitment
Rishi Sunak, the Prime Minister, has announced that the Conservative Party will uphold the two child benefit cap if they secure victory in the next election. This policy restricts the benefits available to parents on Universal Credit for their children and will be included in the party's election manifesto.
Addressing the benefits bill
Sunak emphasized the need to address the increasing welfare costs in the UK, stating that working families do not experience a rise in income when they have more children. He believes that families on benefits should face similar financial decisions as those relying solely on work for support.
Focus on getting people back to work
The Prime Minister highlighted his broader mission to reduce the benefits bill by encouraging people to return to work rather than depend on welfare. Sunak aims to provide a "hand up" to individuals, rather than a continuous "hand-out" through the welfare system.
Response and statistics
Charities and some MPs from the Labour party have called for the removal of the two child benefit cap. The UK has seen a significant increase in individuals relying on welfare since the Covid-19 pandemic, with a record high of 2.8 million adults on long-term sick leave. This surge has led to a substantial rise in the benefits bill, reaching £69 billion this year from £42.3 billion in 2019.
Policy background and implications
The two child benefit rule was introduced in 2017, and eliminating it is estimated to cost around £1.5 billion. This commitment marks the second pledge from the Tory manifesto, with the party also promising to maintain the triple lock on pensions. Labour is expected to face pressure to support the two child limit rather than resorting to increased taxes to fund a larger benefits bill.
