With the two-child limit being scrapped, the Chancellor's Budget has signalled that the Government is committed to improving the lives of children and families. But more remains to be done: we look forward to working with the Government to ensure the right systems and support are in place for those who need them.
Child poverty and social security
Scrapping the two-child limit shows this Government is serious about starting to tackle child poverty, lifting 350,000 children above the poverty line overnight. Poverty can affect every aspect of a child’s present and future life, and hundreds of thousands of lives have just been changed for the better. Along with scores of organisations across different sectors, campaigners, and members of the public, we’ve long called for the two-child limit to be scrapped, and we thank the Chancellor for listening.
We also welcome the increase in the maximum amount that can be reimbursed for childcare costs to those eligible for Universal Credit.
But these measures cannot be the end of the journey. To truly transform children’s lives, we urge the government to ensure the forthcoming Child Poverty Strategy will meet all eight tests developed by the End Child Poverty coalition. We also continue to campaign for a lift of the benefit cap, which will still prevent larger families from receiving appropriate support after the two-child limit is scrapped.
Only by committing to further action on poverty can we ensure every child grows up with the necessities of life they need to thrive.
Children's social care
We welcome last week's announcement outlining the £550 million boost for children's social care reform over the next three years, but more needs to be done to support children and young people transitioning from care.
Poverty is a key driver of children entering the care system. The removal of punitive policies like the two-child limit will not only have a dramatic impact on reducing child poverty but, downstream, could prevent the rise in numbers of children in care.
Economic uncertainty and cost-of-living pressures often increase demand for social care services. We welcome the investment in the wider social infrastructure that shapes demand for children’s social care. This includes areas such as cost of living, the welfare system and transport. By starting to address these factors, we can reduce pressure on the social care system and create a more resilient, equitable society.
SEND funding
This Budget promises the Government will bring forward "plans for reform of special educational needs provision early in the new year to deliver a sustainable system which – first and foremost – supports children and families effectively."
This is absolutely right: any reform must be absolutely focused on improving support for children and young people and their families, and requires a clear plan for how system transformation will be funded across schools, Local Authorities and the NHS.
The Budget points to changes in how funding will work from 2028/29, with spending currently met by Local Authorities moving to central Government's annual budget from 2028/29 more detail is needed about levels of investment across the system in the next 3 years.
We look forward to working with the Government to co-produce with the sector a White Paper that addresses these questions as soon as possible.