Rachel Reeves scraps two-child benefit cap in Budget

The government has announced it will scrap the two-child benefit cap as part of its 2025 budget.

Rachel Reeves told the house: "I'm proud to be Britain's first female Chancellor of the Exchequer. I take the responsibilities that come with that seriously.

"We are lifting 450,000 children out of poverty with the end of the two child limit and Madam Deputy Speaker, combined with other actions we are taking this Labour Government is achieving the biggest reduction in child poverty over our parliament since records began."

Dariusz Karpowicz, director at Doncaster-based Albion Financial Advice says: "Scrapping the two-child benefit cap will cost roughly £2.5 billion annually, money the Treasury doesn't have lying around. Yet here's the uncomfortable truth: Britain's birth rate sits at 1.49