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Child poverty warning as Reform and Conservatives oppose Labour plans to scrap two-child limit

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More than 69,000 children in Wales could be affected as parties clash over benefit policy

A sharp political divide has emerged over child poverty, with Reform UK and the Conservatives opposing Labour’s move to scrap the two-child benefit limit – a policy Labour says is pushing working families and children into poverty.

As legislation to remove the two-child limit is introduced to Parliament, Labour has warned that the position taken by Reform UK and the Conservatives risks forcing more than 69,000 children and around 19,000 working families in Wales back into poverty.

The Conservatives have said they would reintroduce the two-child limit in full, while Reform UK has indicated it would restore the policy for more than 99 per cent of households affected, exempting only families where both parents are in full-time work – most of whom are not currently subject to the limit.

The two-child limit prevents families from receiving additional benefits when they have a third or subsequent child. In Wales, just over 19,000 families are affected, many of them in work but struggling on low incomes.

Labour says new analysis shows that scrapping the limit would benefit more than 69,000 children across Wales and forms a central part of its approach to tackling child poverty and the cost-of-living crisis. By contrast, Labour has accused Reform UK and the Conservatives of pursuing policies that would deepen poverty and reverse recent progress.

In Pembrokeshire, hundreds of families are currently affected by the two-child limit, with Labour representatives warning that the policy disproportionately impacts households in rural areas, where wages are often lower and the cost of essentials such as transport, food and energy is higher. Labour argues that removing the limit would provide direct financial support to working families in the county who are already under financial pressure.

Figures show that the majority of families affected by the two-child limit include at least one working parent, a point Labour says undermines claims that the policy targets those who are not in work.

Eluned Morgan, the First Minister of Wales, said: “The cruel and unfair two-child limit imposed by the Tories has hit the incomes of people in some of our most vulnerable communities in Wales. We in Welsh Labour have relentlessly called for it to be scrapped. We now see from today’s figures, the real positive impact of the UK Government’s action and also the benefit of two Labour governments working together to help tackle child poverty. 

“While your two Labour governments are putting more money in families’ pockets, Reform and the Tories would plunge 450,000 children across the UK back into poverty by reimplementing the policy, punishing parents for working hard.” 

Education Secretary Bridget Phillipson said: “This Labour Government came into office pledging to tackle child poverty and that’s exactly what we’re doing. 

“I’m proud that Labour is scrapping the cruel two-child limit. It’s a policy that has imposed hardship on the children of parents who go out to work to provide as much as they can for their families.  

“Because of Labour’s action, 19,000 families in Wales will have more money in their pockets, with 69,000 more children growing up in households with the means to meet their needs. 

“The Reform-Tory Child Poverty Pact would wipe out this progress. It is a plan to punish parents who work hard and do the right thing, and it would plunge hundreds of thousands back into poverty.” 

Labour says its wider Child Poverty Strategy, which includes expanding free school meals, cutting energy bills, extending childcare provision and increasing the national living wage — is expected to lift 550,000 children out of poverty across the UK by 2030, a figure it says represents the largest reduction in a single parliamentary term.

Business

Welsh businesses invited to shine as awards open for 2026

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Chambers Wales invites businesses of all sizes to enter flagship awards celebrating innovation, growth and impact

Entries have today (Jan 12) opened for the Wales Business Awards 2026, which celebrate innovation, ambition and achievement among businesses across Wales.

Organised by Chambers Wales South East, South West and Mid, the awards are firmly established as a flagship event in the Welsh business calendar and aim to recognise organisations driving growth, creating opportunity and contributing to the Welsh economy.

The 2026 awards include categories covering areas such as innovation, manufacturing, customer excellence, creativity and inclusion. New awards introduced this year include Inclusive Employer of the Year, Start Up Business of the Year and the Wales Creative Impact Award, reflecting the evolving priorities of Welsh businesses.

Winners will be announced at a ceremony hosted by broadcaster Andrea Byrne on May 14 at Holland House Hotel. One overall winner will also be named Wales Business of the Year.

The 2025 title was awarded to Concrete Canvas Ltd, a Pontyclun-based manufacturer recognised for its growth ambitions and innovative engineering solutions.

Gus Williams, chief executive of Chambers Wales South East, South West and Mid, said the awards highlight the role businesses play in shaping Wales’ economic future. He said: “Every year we are inspired by the quality, ambition and determination shown by businesses across Wales.

“The awards provide an opportunity to showcase success, share best practice and celebrate the positive impact Welsh businesses are making locally, nationally and internationally.”

The awards are open to businesses of all sizes and sectors, with entry open to both Chamber members and non-members. The closing date for entries is February 27.

Further information and entry details are available via the Chambers Wales website.


Wales Business Awards 2026 categories

  • Apprenticeship Scheme of the Year
  • Customer Excellence Award
  • Digital Business Award
  • Exporter of the Year
  • Green Business Award
  • Inclusive Employer of the Year
  • Innovation Award
  • Manufacturer of the Year
  • Outstanding Workplace Culture Award
  • Professional Services Firm of the Year
  • Start Up Business of the Year
  • Wales Creative Impact Award
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Health

Welsh Liberal Democrats blame social care shortages after Swansea Bay escalation

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HOSPITAL PRESSURE IN SWANSEA BAY COULD HIT PATIENTS FROM PEMBROKESHIRE WHO RELY ON SPECIALIST SERVICES

CONCERNS have been raised about pressure on hospitals in Swansea Bay after the health board declared its highest level of escalation for the second time in a week — a move that could have knock-on effects for patients from Pembrokeshire who rely on Swansea hospitals for specialist treatment.

Swansea Bay University Health Board’s escalation, known as a Business Continuity Incident, is triggered when demand and capacity pressures reach a critical level, allowing extra internal measures to be put in place to manage patient flow, staffing pressures and bed availability.

While the health board serves Swansea and Neath Port Talbot, its hospitals also provide specialist services used by patients from across west Wales. Pembrokeshire residents are regularly referred to Morriston Hospital and Singleton Hospital for a range of care, including nuclear medicine and other specialist investigations and treatments not always available locally.

The Welsh Liberal Democrats said the latest escalation underlined what they claim is a deeper system-wide issue: shortages in social care leaving patients unable to leave hospital when medically fit, which in turn blocks beds and adds pressure across emergency and planned services.

The party said: “The crisis declared by Swansea Bay University Health Board is further proof that Wales’ NHS cannot be fixed without urgent action on social care.”

Powys example cited

The party pointed to Powys, where the council is led by the Welsh Liberal Democrats, claiming hospital discharge delays have been cut by a third after additional funding was used to recruit more social care staff.

They said the funding was secured by Welsh Liberal Democrat leader Jane Dodds MS during last year’s budget negotiations and directed into expanding community care capacity.

“Social care failure as much as an NHS one”

Responding to Swansea Bay’s decision to declare its highest escalation level again, Jane Dodds MS said the hospital pressures were being driven in part by the lack of care available in the community.

“When hospitals are full and patients are stuck in beds because the care they need at home isn’t available, that is a social care failure as much as an NHS one,” she said.

“What we are seeing in Swansea Bay is exactly what happens when social care is underfunded and overstretched – hospital backlogs, delayed discharges and staff pushed to breaking point.

“Labour has run social care in Wales into the ground, and the consequences are now being felt in hospitals like Morriston and Singleton.

“The lesson is clear: fixing social care fixes the NHS. Wales needs sustained investment in community and social care, not endless crisis management once hospitals are already full.”

Local candidate: “People see it every day”

Sam Bennett, a Swansea councillor and Senedd candidate for Gŵyr Abertawe, said residents were seeing the impact of care shortages daily.

“People across Swansea are seeing the impact of social care shortages every day, whether that’s loved ones stuck in hospital or pressure on frontline staff,” he said.

“Investing properly in care isn’t optional, it’s essential if we want our local hospitals to cope, and it will be my priority should I be elected to the Senedd this May.”

Wider impact

Escalations of this kind are generally introduced to manage periods of exceptional pressure and can involve steps to prioritise urgent care, support discharge planning and manage demand across services.

For Pembrokeshire, any sustained disruption in Swansea Bay can cause concern because of the region’s reliance on specialist appointments and procedures carried out in Swansea. Patients and families are often already travelling long distances for care, and delays or rescheduling can have significant practical and emotional impact.

Health boards have repeatedly urged the public to use NHS services appropriately during periods of high demand and to support timely discharge where it is safe to do so, as blocked beds can quickly intensify pressure across the system.

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Community

Councillor Mike Stoddart’s funeral to take place on February 3

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Former councillor died aged 85 after passing away peacefully at Withybush Hospital

COUNCILLOR Mike Stoddart’s funeral will take place on Tuesday, February 3 at 2.30pm, it has been confirmed.

Mr Stoddart, of Liddeston, Milford Haven, died peacefully at Withybush General Hospital on Sunday, January 4, aged 85, with his family by his side.

A celebration of his life will be held at Parc Gwyn Crematorium in Narberth, followed by refreshments at the Lord Nelson Hotel in Milford Haven.

Family and friends are welcome to attend.

Family flowers only have been requested. Donations in memory of Mr Stoddart will support Hubberston & Hakin Community Centre.

Arrangements are being handled by Tom Newing & Sons Ltd, Funeral Directors, Milford Haven.

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