UK PM Starmer promises measures to reduce child poverty

LONDON (Reuters) -British Prime Minister Keir Starmer said measures would soon be announced to reduce child poverty, possibly hinting that the government will scrap a two-child limit on welfare payments to parents in its November 26 budget.

Reversing the two-child cap, which prevents most parents from claiming welfare payments for more than two children, would cost around 3 billion pounds ($4.03 billion) per year, according to the Institute for Fiscal Studies (IFS).

Previous research by the IFS suggested that scrapping the cap could lift 500,000 children out of absolute poverty.

Starmer told ITV's Lorraine show in comments aired on Tuesday he was determined to drive child poverty down.

"You won’t have to wait much longer to see what the measures are," he said.

In another signal that the policy could be changed, his finance minister, Rachel Reeves, said on Monday it was wrong for a child to be penalised because they are born into a bigger family.

Last week, the Times newspaper reported that Reeves told the budget watchdog that a rise in personal taxation is among the "major measures" she is preparing to announce in her budget.

($1 = 0.7451 pounds)

(Reporting by Sarah Young, editing by Elizabeth Piper)