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Chancellor Reeves Aims to Lift 630,000 Children from Poverty

11/10/2025

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Summary

Story summary

Chancellor of the Exchequer Rachel Reeves announced in the Budget on November 26 plans to abolish the two-child limit to reduce child poverty.
She criticized the policy as unfair to children in larger families.
Reeves said maintaining Labour's manifesto commitments on tax would require significant spending cuts.
The Institute for Fiscal Studies (IFS) estimates reversing the cap could lift 630,000 children out of poverty at a cost of £3.6 billion.

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Story summary

Chancellor of the Exchequer Rachel Reeves announced in the Budget on November 26 plans to abolish the two-child limit to reduce child poverty.
She criticized the policy as unfair to children in larger families.
Reeves said maintaining Labour's manifesto commitments on tax would require significant spending cuts.
The Institute for Fiscal Studies (IFS) estimates reversing the cap could lift 630,000 children out of poverty at a cost of £3.6 billion.