A Salford MP expects that more than 7,000 people in her constituency will be lifted out of poverty because the government decided to scrap the two-child benefit cap.
Walkden MP Yasmin Qureshi welcomed increases to benefits and the state pension alongside the move to lift the limit on the number of children families could claim universal credit for as the new financial year began on Monday, 6 April.
First introduced by the Conservatives in 2017, the controversial policy restricted child tax credit and universal credit (UC) to the first two children in most households.
Chancellor Rachel Reeves announced the cap would be lifted on 6 April when she delivered the budget in November, after months of pressure from Labour backbenchers.
In a statement issued yesterday, Ms Qureshi said the move would lift 7,340 children in her Bolton South and Walkden out of poverty.
“I know the cost of living pressures that my constituents face every day, and the real impact those pressures have on family finances,” she said.
“People in Bolton South and Walkden rightly want a government that will stand by them, and that is exactly what this Labour Government is doing.”
As the two-child cap ends, a series of other Government policies aimed at helping people with rising living costs are also coming into force.
This includes day one rights to paternity leave, and reforms to statutory sick pay as part of the Employment Rights Act.
The state pension is also going up, something the Government says will be worth up to £575 a year for a new claimant.
Owing to the triple lock arrangement, the state pension has risen by 4.8% in line with average wages.
Housing benefit and personal independence payments are among the benefits which are also being uprated by 3.8%, in line with rising prices.
Ms Qureshi added: “As the period of international instability continues, Prime Minister Keir Starmer is working with allies to de-escalate the conflict in the Middle East and ease pressure on prices. At home, he and his Labour Government are focused on supporting families and getting money back into people’s pockets.
“The measures mean more money in people’s pockets and stronger rights to protect them at work. Whether you are a family that has struggled under the two child limit, a pensioner who has worked hard all your life and deserves security, or a worker who deserves to be treated with dignity from day one, this government is delivering for you.
“I am proud to be part of a Labour Government that continues to honour the change we promised.”
