Alex Clegg
@alexclegg.bsky.social
1.6K followers 1K following 230 posts
Economist at the Resolution Foundation, focusing on social security, poverty and living standards
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alexclegg.bsky.social
Last week we outlined how the Chancellor could fund scrapping the limit through introducing a new sugar and salt tax on unhealthy foods, which would also relieve pressure on the NHS and boost the nation’s health.
bsky.app/profile/resf...
resfoundation.bsky.social
Is the Government going to announce an end to the two-child limit this autumn?

@ruthcurtice.bsky.social explains why they should ⤵️
alexclegg.bsky.social
The fiscal challenges facing the Chancellor at the Budget are real and significant, but finding the money to fully scrap a policy that pushes so many children into poverty should be a priority.
alexclegg.bsky.social
Scrapping the two-child limit in full should be an obvious step in the child poverty strategy. Most of the forecast rise in child poverty this Parliament comes from larger families, and scrapping the policy would lift 500,000 children out of poverty almost overnight.
alexclegg.bsky.social
The Government wants to deliver an “ambitious strategy to reduce child poverty”. Halfway options that leave hundreds of thousands of children in poverty to save ~£1bn cannot be seen as ambitious.
alexclegg.bsky.social
And none of the rumoured options is as cost-effective in lifting children out of poverty as fully scrapping the two-child limit, which would cost £7,480 per child lifted out of poverty (the other options range from £7,540 to £10,520.
alexclegg.bsky.social
The numbers lifted out of poverty would be slightly higher than with a 3-child limit or paying a lower child element for 3rd+ children, but this option would fail to help the most disadvantaged families and would mean a huge income loss if a large family no longer met the working conditions
alexclegg.bsky.social
Exempting families in work would cost an estimated £2.6 billion in 2029-30 and would lift 350,000 children out of poverty (there would be 120,000 more children in poverty than if the limit were abolished, to save £0.9 billion)
alexclegg.bsky.social
Compared with a 3-child limit, this policy would benefit families with 4+ children at the expense of those with 3 children. It would still leave a significant number of children in poverty vs scrapping the policy outright
alexclegg.bsky.social
Setting the child element for third and subsequent children at 2/3rds of the standard child element would cost £2.3bn in 2029-30 and would lift 240k children out of poverty (there would be 230k more children in poverty than with full abolition, to save £1.2bn).
alexclegg.bsky.social
It would clearly help compared with the status quo, but it would retain the problematic disconnect between need and entitlement in the system for families with four or more children.
alexclegg.bsky.social
Moving to a 3 child limit would cost £2.4 billion in 2029-30 and would lift 280,000 children out of poverty (compared to full abolition, there would be nearly 200,000 more children in poverty for a saving of just over £1 billion)
alexclegg.bsky.social
Very encouraging to read that the Government is preparing to lift the two-child limit as part of its child poverty strategy, but it is disheartening that options short of scrapping it entirely are still being considered. Thread on why this would be the wrong choice for an ambitious strategy:
Rachel Reeves to lift two-child benefit cap in November budget
Exclusive: Officials exploring options to change rule that affected 1.7 million children in Great Britain last year
www.theguardian.com
Reposted by Alex Clegg
resfoundation.bsky.social
Over the past two decades, the Resolution Foundation has worked to put living standards at the heart of political debates through its forensic research and hard-headed policy work.

As we mark our 20th anniversary, we reflect on the past and future of living standards in Britain.

👉 buff.ly/NuhNFF9
Ruth Curtice, Chief Executive of the Resolution Foundation, said:
“Over the past 20 years, the Foundation has helped to put living standards at the centre of political debate in Britain. And that’s where they belong given the scale of the living standards slowdown across Britain, which has cost the typical family an astonishing £20,000 a year.
“As we look ahead, the task of raising living standards across Britain is bigger than ever – we simply cannot afford any more stagnation. This makes the work of the Foundation even more urgent as we redouble efforts to push for sustained family income growth.
alexclegg.bsky.social
His album African Giant from 2019 is very good
Reposted by Alex Clegg
hannahslaughter.bsky.social
ICYMI - new report out yesterday by me and Imogen Stone on how disabilities and caring affect low-to-middle income families, drawing on quant analysis and focus groups with disabled people and carers. Thread on key findings below 🧵 www.resolutionfoundation.org/publications...
Don't forget about us • Resolution Foundation
This briefing note combines quantitative data with insights from focus groups to explore how disabilities and caring responsibilities affect these families’ lives and living standards.
www.resolutionfoundation.org
Reposted by Alex Clegg
mollybroome.bsky.social
Tonight, Rachel Reeves delivers her Mansion House speech, and we expect she’ll announce the long-awaited review into pension adequacy (alongside other reforms such as financial deregulation).
alexclegg.bsky.social
And, to reiterate, the two-child limit is one of the single biggest drivers of child poverty and scrapping it would lift around half a million children out of poverty almost overnight.
alexclegg.bsky.social
And data on ethnicity of affected households suggests Asian and Black families are over-represented among those affected by the two-child limit, though the big caveat here is that 37% reported their ethnicity as other or did not specify
alexclegg.bsky.social
Data on the age of the youngest child in affected households reminds us that this is a policy that currently affects young children, due to the nature of the roll-out:
alexclegg.bsky.social
8 per cent of households affected by the two-child limit are also affected by the benefit cap. These households will see no gain if the two-child limit is scrapped.
alexclegg.bsky.social
40 per cent of households affected by the two-child limit are receiving a health or disability benefit, and 1 in 4 affected households has a child who is receiving a disability benefit or is blind
alexclegg.bsky.social
59 per cent of households affected by the two-child limit have at least one person in work, and we now have data on affected households' conditionality groups, which shows 21% in the 'Working - no requirements' group, which generally means working full time.
alexclegg.bsky.social
450,000 households and more than 1.6 million children were affected by the two-child limit in April 2025, an increase of 13,000 households and 35,000 children compared to April 2024
alexclegg.bsky.social
Good question! No the data is just for families getting UC who are affected, so the true numbers of households and children affected will be higher than this