Ending two-child benefit cap in Budget brings hope to parents

The removal of the two-child benefit limit will mean no longer “scraping the barrel every month” to afford bills and food, a mother-of-three has said.

In her budget, chancellor Rachel Reeves committed to scrapping the two-child cap for those within universal credit.

The change means many thousands of parents with three or more children will receive more in universal credit and tax credits.

Lucy Burns, from Eastbourne, East Sussex, who receives universal credit, said the change provided a “little buffer” for her family of six, including a stepson.

Ms Burns, who has her own business and works weekends to support her family, said she was hopeful she could now begin “putting money aside for the kids”.

“Everything is so expensive these days – from putting petrol in the car to childcare,” she said.

“Obviously we’re really grateful that we get the free [government] childcare now, but there’s obviously top-ups.”

Another key announcement was that income tax thresholds would be frozen until April 2031 – a year longer than expected – meaning more people will pay higher rates as their pay increases.

Tom Reveley, director of an IT company in Kent, was not inspired by a Budget of “tax, tax, and more tax, unfortunately”.

“I don’t see it putting any kind of emphasis on any form of investment,” he said.

Mother-of-four Lauren Harper, from Eastbourne, said it would affect how she and her husband budget for their family, including food costs.

“The cost of food is astronomical now and to feed a family of six is a huge amount of money,” she said.

The freeze means 780,000 more people will start paying income tax, according to the Office for Budget Responsibility (OBR).

Other policies announced included plans to tax electric vehicle (EV) and hybrid car drivers for using the road from 2028, with EV drivers to be charged 3p per mile.

Hayden Bloomfield was among those who watched the Budget at a round table event in Chatham.

Mr Bloomfield, who works for a marketing company, said it was a “bad” Budget for him as an EV driver, but he was encouraged by other announcements.

“The push for apprenticeships would be a super helpful for growing our business,” he added.

Reeves has also confirmed that funding would be made available to make training for under-25 apprenticeships free for SMEs (small and medium sized enterprises).

The chancellor has also confirmed that the state pension would rise by 4.8% in April, in line with average wages.

People eligible for the new flat-rate state pension, namely those who reached state pension age after April 2016, will increase to £241.30 a week, or £12,547.60 a year – a rise of £574.60.

Those who receive the previous basic state pension after reaching state pension age before April 2016 will receive £184.90 a week.

This has been welcomed by Jenny Barnard, from Farnham, who celebrated her 77th birthday on Monday.

“It’s good. Everything’s got so expensive, and we all need that bit extra at the moment. And keeping warm is a priority”, she said.