Child benefit cap must be scrapped – Labour can’t afford not to (Image: House of Commons/PA Wire )
Child poverty is a source of national shame in today’s Britain. The UK continues a humiliating drop down the international rankings when it comes to child poverty, but reversing the two-child benefit cap would restore hope to families and children across the country. Our Child of the North report shows the cap is a key driver of poverty which, if kept in place, could see this as the first Labour government to have child poverty increase under its leadership.
There is no reason for the cap to remain. It punishes innocent children whose parents are already struggling and has no positive benefit. 1.3 million children across England are affected by this. Impacted families lose an average of £3,235 annually. The Resolution Foundation estimates that removing the cap would immediately lift 470,000 children out of poverty.
If unchanged, child poverty is projected to rise to 4.8 million by 2030. Our research shows child poverty causes poor health outcomes and worsening physical and mental health. It undermines children’s learning, social wellbeing, and education, with long-lasting effects well into adulthood.
The families it affects are already struggling with extremely difficult conditions. Most people living in poverty are employed. Two out of five people who claim Universal Credit are in work. Our research shows that people living in the most deprived areas are more likely to be in worse physical and mental health, take on more unpaid care and work more hours for less pay.
Our work with the Child of the North All-Party Parliamentary Group uncovered harrowing stories of parents watering down baby formula to make it last longer and some having to abort wanted pregnancies because they simply do not feel they can afford a child.
Even the most hard-nosed economists understand that poverty is inefficient – it results in higher long-term costs for public services, from health to education to productivity. In 2025, one in three children in England live in poverty. Making an investment now by scrapping the cap will see children prosper in years to come – an opportunity the government cannot afford to miss.
Professor Kate Pickett is Academic Co-Director of Health Equity North and Professor of Epidemiology at the University of York
Rachel Reeves sent new £15bn warning over brutal inheritance tax raid
Chancellor Rachel Reeves unveiled the changes at the autumn budget (Image: Getty)
Labour’s inheritance tax raid on farmers and other family businesses risk hundreds of thousands of jobs and a £15 billion hit to the economy, new research warns. Family Business UK said the controversial changes announced at the autumn budget will hit every sector of the economy and every region of the UK.
Its analysis found that the overhaul could lead to 208,500 job losses by the end of this Parliament, as well as £14.86 billion less economic activity Tory shadow chancellor Mel Stride said the research should be a “wake-up call” to Chancellor Rachel Reeves.
He added: “Labour’s raid on family businesses risks hollowing out the backbone of our economy.
“From farms in Yorkshire to factories in the Midlands, family businesses face punishing uncertainty. The Chancellor must urgently rethink these plans and work with industry to protect jobs, investment, and the future of British enterprise.
“You can’t tax your way to growth. As an entrepreneur, who has built businesses from scratch, I know it’s business that creates prosperity. Labour’s front bench doesn’t get it because they lack any real-world business experience. We can’t afford Labour.”
The Government has faced an ongoing backlash for limiting the 100% Agricultural Property Relief (APR) and Business Property Relief (BPR) to a combined £1 million.
The move has sparked outrage from farmers and other family businesses who fear they will no longer be able to pass on their lifetime’s work.
Neil Davy, CEO of Family Business UK, said: “This latest research shows just how far-reaching, and immediate, the impact of these policy changes is. No industry, sector, region or parliamentary constituency will be immune.
“In construction, services, manufacturing, tourism, transport, agriculture and horticulture, family business owners are responding to the changes to BPR and APR by tearing up long-term plans to invest in their businesses, their employees and the communities in which they are based.
“While parts of government are looking at how to boost regional growth and create opportunities in every sector of the economy, this research shows how changes to BPR and APR will achieve the exact opposite.
“Within our diverse and rapidly changing economy, family business owners have been building Britain for generations. If they are to continue to do so, with confidence in the future, the Government must urgently reconsider these policy changes.”
The research, conducted by CBI Economics, involved almost 4,200 family businesses.
It comes as the Daily Express has been campaigning for a U-turn with our Save Britain’s Family Farm crusade.
A Treasury spokesperson said: “Our reforms to Agricultural and Business Property Reliefs will mean three quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most estates pay, and payments can be spread over 10 years, interest-free. This is a fair and balanced approach which helps fix the public services we all rely on.
“Capping the rate of corporation tax, reforming planning, establishing a National Wealth Fund and creating pension megafunds is part of our Plan for Change to get Britain building, unlock investment and support business so we can raise living standards and make all parts of the country better off.”
