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Poverty policy debate grows

Neil Kinnock calls for ending the two-child cap and funding reforms with a wealth tax.

August 16, 2025 at 11:00 PM
blur Neil Kinnock calls for government to scrap two-child cap on benefits

Former Labour leader urges ending the two-child cap on benefits and considers a wealth tax to reduce child poverty.

Neil Kinnock calls for government to scrap two-child cap on benefits

Lord Neil Kinnock told the Sunday Mirror that Labour must scrap the two-child cap on benefits to lift children out of poverty. He argued that ending the cap could reduce poverty by about 600,000 children, and he floated a wealth tax on the top 1% to fund the changes. He acknowledged the move might have to be gradual but urged the government to move in that direction, noting the political state over the past 15 years.

Data cited by the article show the cap affected 37,000 more children in the year to April, bringing the total in affected households to about 1.7 million. The government says it is reforming the social security system to help people into well-paid work and will publish a strategy on child poverty later this year. Gordon Brown has also suggested ending the cap would be among the most effective steps to reduce child poverty.

Key Takeaways

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Kinnock adds pressure on the two-child cap
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Ending the cap could reduce poverty for hundreds of thousands of children
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Nearly 1.7 million people live in households affected by the cap
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A wealth tax is proposed to fund reforms
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Policy momentum depends on political timing and budget constraints
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Public reaction will shape how far policy shifts go

"600,000 kids fewer are in poverty."

Kinnock on impact of ending the cap

"The kids are voiceless and their parents feel powerless."

Kinnock on child poverty and voice

"I know it's the economics of Robin Hood, but I don't think there is anything terribly bad about that."

Kinnock on funding reforms

"Weve got to the place that would make Charles Dickens furious."

Kinnock on the trajectory of poverty

The call signals cross-party concern about welfare policy and poverty, turning empathy into political pressure. It tests the government's willingness to rethink a long-standing policy and to consider tax-based funding for relief. The politics of wealth taxation remain contested and the risk of backlash is real. If momentum grows, the debate could redefine how Britain talks about poverty, fairness, and the role of tax. The danger is that policy changes could be framed as giveaways or unfair to work, depending on messaging and fiscal limits.

Highlights

  • 600,000 kids fewer in poverty could be reality
  • The kids are voiceless and their parents feel powerless
  • I know it's the economics of Robin Hood, but I don't think there is anything terribly bad about that
  • Weve got to the place that would make Charles Dickens furious

Political and budget risk around welfare reform

Ending the two-child cap and introducing a wealth tax would require budget adjustments and could provoke political backlash. It elevates welfare policy as a live political issue and risks public disputes over fairness and funding.

Policy momentum will test how far welfare reform can go without broad political consensus.

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