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2025 Budget: Child Benefit Cap Lifted, Wages Increased

11/27/2025

Summary

Story summary

Chancellor Rachel Reeves announced 2025 Budget removing the two-child benefit cap, effective April 2026, to lift 450,000 children from poverty.
The Budget raises national living wage by 4.1% to £12.71 per hour, but higher National Insurance contributions may offset gains.
Pensioners living abroad will face stricter National Insurance contribution rules.
Reaction has been mixed, with the Women Against State Pension Inequality campaign disappointed that affected women did not receive compensation.

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Story summary

Chancellor Rachel Reeves announced 2025 Budget removing the two-child benefit cap, effective April 2026, to lift 450,000 children from poverty.
The Budget raises national living wage by 4.1% to £12.71 per hour, but higher National Insurance contributions may offset gains.
Pensioners living abroad will face stricter National Insurance contribution rules.
Reaction has been mixed, with the Women Against State Pension Inequality campaign disappointed that affected women did not receive compensation.