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.