Scrapping child benefit cap makes economic sense, Reeves told

The article discusses calls for the UK government to scrap the two-child benefit cap. Senior Labour MP Rachel Reeves and leading economist Torsten Bell have urged Chancellor Jeremy Hunt to remove this policy, arguing that it makes economic sense to do so. The two-child benefit cap, introduced in 2017, limits child benefit payments to the first two children in a family. Critics argue that this policy has pushed more families into poverty and disproportionately affects low-income households. Reeves, the shadow chancellor, and Bell, the chief executive of the Resolution Foundation think tank, have both stated that scrapping the cap would be a fiscally responsible move. They claim that the long-term economic benefits of supporting larger families would outweigh the short-term costs. The article suggests that the government is facing growing pressure to reconsider the policy, as concerns mount about its impact on child poverty and the broader economic implications.