Changes to the two child benefit limit have been delayed but other poverty measures are set to be fast-tracked amid a brewing welfare rebellion among Labour MPs.
The government’s child poverty strategy, that is set to make recommendations around the two child limit, was due to be published in spring but has been pushed back until the autumn.
However, a No 10 source said announcements around other policies designed to tackle child poverty could be brought forward in the meantime.
Any changes to the two child cap will not be announced until the strategy, led by a cross-government ministerial taskforce, is published “later in the year”.
Government insiders believe announcing some other measures to bring down poverty levels could alleviate the concerns of MPs, who are threatening to vote against other welfare reforms.
The i Paper reported earlier this week that the government was not looking to scrap the two child benefit limit altogether, which prevents parents on welfare payments claiming money for a third or subsequent children, entirely.
The policy will, instead, be softened to increase eligibility amid pushback from Labour MPs and concerns over its link to families living in deprivation, sources have said.
Reducing the number of children living in poverty was a key promise of the government and Labour backbenchers have been urging ministers to scrap the cap.
Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves have so far argued the country cannot afford to do so.
The child poverty strategy has now been pushed back until the autumn in order to align it with the next budget.
But MP concerns have been mounting alongside a planned rebellion against the government’s proposals to restrict disability and sickness benefits.
Labour MPs are prepared to vote against the changes to personal independence payments (PIP) for disabled people because they fear they will push vulnerable people into hardship.
A government impact assessment suggested the reforms, which would save £5bn a year, would push 50,000 children into poverty.
Government sources have said they believe a positive offer to bring down child poverty levels could be enough to persuade some MPs to support the disability benefit changes.
Insiders argue that delaying the publication of child poverty strategy would not preclude ongoing activity in this area.
According to reports, the government could look at additional support for disabled children and expanding the eligibility of free school meals as short-term measures to counter rising levels of deprivation.
The Sunday Times also suggested child benefit levels could be altered.
Scrapping the two child limit entirely would have cost an estimated £3.5bn.
And the Chancellor, who is due to unveil her spending review next month, has very little room to manoeuvre without bringing forward further tax rises.
This week, economic figures showed an unexpected rise in borrowing last month, piling more pressure on Reeves’s tax and spend plans.
The Office for National Statistics (ONS) said public sector net borrowing rose to £20.2 billion, its fourth-highest April figure on record.
The latest figure showed that the Chancellor had to borrow more money than expected over the month, surpassing analyst predictions of £17.6 billion.
Deputy Prime Minister Angela Rayner, who sits on the taskforce alongside the Work and Pensions Secretary Liz Kendall and Education Secretary Bridget Phillipson, argued on Sunday that poverty has multiple contributing factors.
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She told LBC: “The two-child benefit cap is one element, but it’s also about people having real secure wages. It’s about bringing down housing costs, it’s about utility bills that have gone up.
“In the round, there are a number of measures that we need to look at and within our official envelope to challenge and to bring down child poverty.
A Government spokesperson pointed to measures already implemented including the expansion of free breakfast clubs in schools, a cap on the cost of school uniforms, and increased national minimum wage.
The two-child cap was introduced when the Conservatives were in power, and restricts parents from claiming certain benefits for more than two of their children.
Its critics say scrapping the cap would be the most effective way of reducing child poverty across the UK.
A government spokesperson said: “The government is determined to bring down child poverty.
“We’ve already expanded free breakfast clubs, introduced a cap on the cost of school uniforms, increased the national minimum wage for those on the lowest incomes, uprated benefits in April and supported 700,000 of the poorest families by introducing a Fair Repayment Rate on Universal Credit deductions.
“We will publish an ambitious child poverty strategy later this year to ensure we deliver fully-funded measures that tackle the structural and root causes of child poverty across the country.”
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