A conservative-leaning think has issued a new report today aimed at closing the ‘birth gap’ – the disparity between a majority of women’s preferred number of children and the actual birth rate. And central to the remedy, the report suggests, would be scrapping the current two child benefit cap.
“Britain urgently needs ‘A New Deal for Parents’ to close the birth gap between the number of children people want and have,” the report states. “A record low 1.49 children were born per woman in 2022; despite women staying, they want 2.35 children on average.”
The problem lies in economic insecurity, Onward suggests: “Two-fifths of would-be parents blame financial insecurity for putting off having the children they want. Families are three times more likely to be behind on their bills than households without children. A fifth are in serious financial difficulty. A majority (53%) of women aged 18-35 in one survey said the impact on careers discouraged women from having children — the second biggest reason behind the effect on household finances.”
Addressing these issues will take a multi-pronged approach, the report goes on. Government will need to pull a number of levers to encourage more women to have children, and it argues that the tax system, parental rights environment and social security all need reform to allow parents – especially women – to have children, stay solvent, pursue careers and be present in their children’s lives.
And the report trains its guns specifically at the Two Child benefit cap, which currently affects an increasing number of families, primarily working parents. As of April 2024, the cap meant that around 450,000 families were affected.
“The policy increases children’s risk of being in poverty,” the research says. “In 2022/23, 4.3 million were in relative low income after housing costs, the highest level of child poverty after housing costs in 30 years. The cap also sends a harmful signal that the Government does not value children.
“We recommend the two-child benefit limit be abolished.”
Onward also argues for the introduction of Child Tax Allowance of £1000, freezing the Personal Allowance threshold, the abolition of High Income Child Benefit Charge, an increase in Statutory Maternity Pay, the introduction of a Statutory Maternity Pay Cap and an increase in Statutory Paternity Pay and Leave.
Adopting all of these measures, it estimates, would amount to £8.17 billion a year.
