Independent Revenues & Benefits Discussion Group – 2 June 2025
The latest session of the Independent R&B Discussion Group brought together leading professionals across the UK to reflect on the continued delays in the UK Government’s long-awaited child poverty strategy, the contentious two-child benefit cap, and the real-world impacts facing councils and communities.
Hosted by Malcolm Gardner, the group included contributions from a wide range of experienced voices, including Alex Clegg (Resolution Foundation), Kirsty Brooksmith (Hammersmith & Fulham), Gareth Morgan (Dangos), Naomi Armstrong (Cambridge Council), Tom Clark (Slough), Sean O’Sullivan (Visionary Network), Julie Smethurst (Tameside Council), Bob Wagstaff (Visionary Network), and others.
Delays, Dilemmas and Disbelief
The group began by addressing the postponement of the UK Government’s comprehensive child poverty strategy, now delayed until at least autumn. Malcolm highlighted the political tension surrounding benefit reform within the Labour Party, while Kirsty Brooksmith voiced cautious optimism, noting that “it needs addressing… they’re the ones that suffer and it’s quite unfair.”
Alex Clegg offered insights into the strategic timing of the announcement, suggesting any substantial changes – such as abolishing the two-child limit – would likely be reserved for a fiscal event like the Budget. Without increased benefit spending, he argued, “the strategy is not really credible at all.”
A Policy Under Fire
The discussion turned sharply to the two-child benefit cap. Bob Wagstaff delivered an impassioned critique, calling it “entirely unfair” and likening it to refusing healthcare or education to third-born children. Sean O’Sullivan noted the media’s influence in its creation, with the policy framed as a populist response to tabloid narratives.
Naomi Armstrong and Gareth Morgan underscored the consequences of inaction, particularly the rising tide of homelessness and educational disruption. Morgan reminded the group that in Wales, despite the Future Generations Act, “child poverty… is increasing,” adding, “strategies don’t do much – actions do.”
Strategic Spending or False Economy?
The economic rationale for reversing the two-child cap was reinforced by Alex Clegg, who cited recent research from NEF showing that scrapping the cap could generate wider social savings. “It’s definitely expensive to have kids in poverty,” he observed, especially at local authority level. Tom Clark echoed this from a frontline perspective in Slough, stating that demand for welfare and hardship support was rising significantly.
Naomi Armstrong noted the financial and emotional cost of homelessness, warning that displacing families erodes community links and escalates mental health pressures: “The mental health impact of being financially constrained impacts on someone’s ability to work.”
Diverging Paths: The Wales Example
As the group considered alternative models, Gareth Morgan provided compelling examples from Wales, where support structures such as Flying Start and Educational Maintenance Allowance remain in place. He contrasted this with cuts in England and highlighted how investment in preventative measures yields meaningful outcomes.
Reform on the Horizon?
The conversation also touched on wider Council Tax Reduction (CTR) schemes and the administrative pressure of continually adjusting to central policy shifts. Tom Clark observed, “You change your scheme for one year… then they throw something else in six months later.”
Kirsty Brooksmith highlighted the growing need to support households with young adults, as more local authorities adjust schemes to account for non-dependent deductions. Brentwood’s continued provision of full disability support and exclusion of higher-band owner-occupiers was raised by Sean O’Sullivan as an example of schemes that protect the most vulnerable – albeit with fiscal trade-offs.
Reflections and Forward Look
The group wrapped up by considering Scotland’s growing fiscal gap due to expanded welfare commitments, with Gareth Morgan noting the “financial consequences” of progressive reform. Yet he and Alex Clegg both stressed that welfare spending is inextricably linked to health and education – a point reinforced by Naomi Armstrong, who warned: “If you take away from one, you destabilise the others.”
Looking ahead, the group hopes to hear directly from entitledto next week as the debate continues around CTR modelling, scheme design, and the broader challenge of delivering for residents under mounting fiscal pressure.
For more information or to join future sessions, contact Malcolm Gardner at Visionary Network. info@visionarynetwork.co.uk
Note
Please note that the handout contains additional slides covering other items of interest in the news and job adverts, which are provided in partnership with Business Smart Solutions (https://www.businesssmartsolutions.co.uk/).