UK to Scrap Two-Child Limit on Universal Credit as Labour Pushes for Welfare System Reform.
The UK government has announced a new child poverty strategy that will end the two-child limit on universal credit, a move expected to lift 450,000 children out of poverty by 2031. The policy change, which costs £3bn to the Treasury, is being hailed as a victory by Labour MPs who had campaigned for its abolition.
Work and Pensions Secretary Pat McFadden has confirmed that further changes to the welfare system are planned, despite claims from the Conservative government that no reform is on the horizon. "I think because of what happened in July, there's been a conclusion that no reform is happening," McFadden said. "That's a mistake. Reform is happening."
McFadden emphasized that getting people into work will help improve their prospects and save money on benefits. "Every person we can get into work and not have them on benefits for years is earning and paying tax. That does save money on the benefits bill," he argued.
While Labour has welcomed the policy change, McFadden cautioned against a simplistic approach to welfare system reform. He said that reforms should prioritize helping people get into work rather than just reducing costs. "We shouldn't be just looking at how we can cut costs in the system, we need to ask ourselves: does it do everything it can to help people into work?" he stated.
The government has also launched two reviews, one on disability benefits and another on youth inactivity, which are expected to drive further changes to the welfare system. McFadden vowed that these reviews will examine ways to enhance people's opportunities to get into work across different government departments.
Overall, the UK government's new child poverty strategy represents a shift towards more holistic approaches to addressing poverty, with a focus on helping people into work and improving their long-term prospects.
The UK government has announced a new child poverty strategy that will end the two-child limit on universal credit, a move expected to lift 450,000 children out of poverty by 2031. The policy change, which costs £3bn to the Treasury, is being hailed as a victory by Labour MPs who had campaigned for its abolition.
Work and Pensions Secretary Pat McFadden has confirmed that further changes to the welfare system are planned, despite claims from the Conservative government that no reform is on the horizon. "I think because of what happened in July, there's been a conclusion that no reform is happening," McFadden said. "That's a mistake. Reform is happening."
McFadden emphasized that getting people into work will help improve their prospects and save money on benefits. "Every person we can get into work and not have them on benefits for years is earning and paying tax. That does save money on the benefits bill," he argued.
While Labour has welcomed the policy change, McFadden cautioned against a simplistic approach to welfare system reform. He said that reforms should prioritize helping people get into work rather than just reducing costs. "We shouldn't be just looking at how we can cut costs in the system, we need to ask ourselves: does it do everything it can to help people into work?" he stated.
The government has also launched two reviews, one on disability benefits and another on youth inactivity, which are expected to drive further changes to the welfare system. McFadden vowed that these reviews will examine ways to enhance people's opportunities to get into work across different government departments.
Overall, the UK government's new child poverty strategy represents a shift towards more holistic approaches to addressing poverty, with a focus on helping people into work and improving their long-term prospects.