Working Families’ response to the Autumn Budget 2025

Published: 26 Nov 2025

Removal of the two-child benefit cap and raising of the National Minimum Wage and National Living Wage

In response to the Chancellor’s Autumn Budget statement, Jane van Zyl, CEO of Working Families commented:

We welcome the government’s recognition of the urgent need to address child poverty, and its decision to remove the two-child benefit cap. This policy placed additional pressure on families already working hard to make ends meet, without improving outcomes for children. We know from ONS statistics that parental employment has grown significantly over the last few decades, however wages have not kept pace with rising costs. With seven in ten children in poverty living in working households, many parents have had limited opportunity to increase their income, especially in the midst of an ongoing cost of living crisis. We are pleased, therefore to hear the government’s decision to raise the National Living Wage and the National Minimum Wage, showing a commitment to making work pay and supporting the estimated 3.2 million children in working households who are in poverty.

“As the government takes these important steps, the focus must now turn to practical measures that enable parents to stay in work and progress in their careers. Affordable childcare is essential, and flexible working should be central to the Employment Rights Bill in helping families achieve financial stability and a standard of living that allows them to thrive.