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North East Anti-Poverty Campaigners Welcome 'Beginning of the End' for Two-Child Benefit Cap

  • The UK Parliament approved the second reading of the Universal Credit Bill, with a vote of 458 to 104, and it will be scrutinised further before April.
  • Campaigners and charities say the cap pushes 109 children per day into poverty, and Labour faced pressure since summer of 2024 before Chancellor Rachel Reeves announced repeal plans last year.
  • Work and Pensions Secretary Pat McFadden argued the current policy treats children as pawns, and if enacted the bill would allow families to claim the child element of Universal Credit for all children.
  • The Office for Budget Responsibility estimates the change will cost £3 billion annually by 2029/30, while the Government projects it will lift 550,000 children out of poverty by 2030.
  • Political opponents warned as Robert Jenrick and Suella Braverman accidentally voted with the government after a lobby mix-up, while Reform UK and Conservative opponents criticised the repeal.
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City AM broke the news in London, United Kingdom on Wednesday, February 4, 2026.
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