Work and Pensions Secretary Amber Rudd says she will ‘reset’ the welfare system.
She has decided to remove the retrospective two-child benefit cap enacted two years ago by Philip Hammond.
It was thought up to 50,000 households could have been affected by the policy and allows families to claim at least £2,780 a year.
Ms Rudd told Sky’s Tom Rayner: “This is going to be, going forward, a really compassionate and fair policy [Universal Credit], and the two-child policy, having that kind of retrospective approach, did not meet that high bar that I am setting.”
She also signalled that the benefits freeze would not be extended past 2019, as it was the ‘right policy at the time’.
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