Tuesday, July 21, 2026

“UK PM Lifts Child Benefit Policy, Aims to Reduce Cost of Living”

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Keir Starmer, the Prime Minister, has pledged unwavering support for the British people as the restrictive two-child benefit policy is lifted. This change, effective from Monday, is expected to lift approximately half a million children out of poverty. Starmer emphasized the government’s commitment to addressing the concerns of families regarding the cost of living amidst global uncertainties.

In a statement, Starmer asserted that his administration prioritizes reducing the cost of living for the British population. He highlighted the importance of responding to the restlessness for change and expressed pride in the significant impact of the policy change, including lifting children out of poverty, enhancing support for pensioners, and advancing workers’ rights.

Acknowledging the concerns of families nationwide regarding the impact of global events on living expenses, Starmer confirmed collaborative efforts with international partners to de-escalate tensions in the Middle East, specifically focusing on the Strait of Hormuz issue. He emphasized the necessity of making prudent long-term decisions to strengthen the nation’s resilience during challenging times.

The removal of the two-child limit, initially introduced by the Conservative Party, will benefit around 1.5 million children, expanding access to benefits like Universal Credit. Additionally, the standard rate of Universal Credit will increase by 6.2%, resulting in a yearly increment of approximately £265 for individuals and £465 for couples.

In response to the government’s actions, Liberal Democrat leader Sir Ed Davey criticized the Labour Party for imposing higher taxes on families and businesses, failing to address fuel price concerns, and potentially allowing a significant rise in energy bills later in the year. Davey urged the Prime Minister to consider the Liberal Democrat proposal for a 10p reduction in fuel duty and ensure protection for families and pensioners against substantial energy bill hikes.

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