Child poverty is a source of national shame in today’s Britain. The UK continues a humiliating drop down the international rankings when it comes to child poverty, but reversing the two-child benefit cap would restore hope to families and children across the country. Our Child of the North report shows the cap is a key driver of poverty which, if kept in place, could see this as the first Labour government to have child poverty increase under its leadership.
There is no reason for the cap to remain. It punishes innocent children whose parents are already struggling and has no positive benefit. 1.3 million children across England are affected by this. Impacted families lose an average of £3,235 annually. The Resolution Foundation estimates that removing the cap would immediately lift 470,000 children out of poverty.
If unchanged, child poverty is projected to rise to 4.8 million by 2030. Our research shows child poverty causes poor health outcomes and worsening physical and mental health. It undermines children’s learning, social wellbeing, and education, with long-lasting effects well into adulthood.
The families it affects are already struggling with extremely difficult conditions. Most people living in poverty are employed. Two out of five people who claim Universal Credit are in work. Our research shows that people living in the most deprived areas are more likely to be in worse physical and mental health, take on more unpaid care and work more hours for less pay.
Our work with the Child of the North All-Party Parliamentary Group uncovered harrowing stories of parents watering down baby formula to make it last longer and some having to abort wanted pregnancies because they simply do not feel they can afford a child.
Even the most hard-nosed economists understand that poverty is inefficient – it results in higher long-term costs for public services, from health to education to productivity. In 2025, one in three children in England live in poverty. Making an investment now by scrapping the cap will see children prosper in years to come – an opportunity the government cannot afford to miss.
Professor Kate Pickett is Academic Co-Director of Health Equity North and Professor of Epidemiology at the University of York
