In the past hour, there’s been more reports that the two-child benefit cap is set to be scrapped.

Both The Sun and The Guardian are reporting that the scheme limiting child benefits to a family’s first two offspring is for the chop at the budget in November.

Policies like this are never confirmed on the record before a budget, but it is very much not being denied.

Speaking from a Labour Party conference fringe event, Chancellor Rachel Reeves pointed to the fact the PM said the government will reduce child poverty – but policies will be set out in the budget.

She added that the government can’t commit to policies without explaining where the money comes from.

The chancellor says that the financial constraints on the government are intensifying and borrowing costs are going up.

Estimates for the cost of raising the three child cap sit at around £3bn – roughly the amount the government wanted to find from its benefits reforms before Labour backbenches killed them off.

Reeves added: “I would be the first person to want to find some money down the back of the sofa to pay for lots of different things.

“But I have to be chancellor in the world as it is, not in the world as I might like it to be.”

A government source told Sky News no decision on the policy has been taken as of yet.

A spokesperson for the Children’s Charities Coalition – which includes Action for Children, Barnardo’s, The Children’s Society, National Children’s Bureau, NSPCC – said:
“It is vital the government scrap the two-child limit without delay. This is desperately needed for countless families across the UK struggling to provide their children with the everyday essentials of life. 

“Growing up in poverty can have a devastating impact on children, affecting their health, their wellbeing and their future potential. Removing the two-child limit entirely would immediately benefit hundreds of thousands of children and be a huge step forward in tackling the shameful levels of child poverty in this country.”

The Tories oppose the lifting of the cap – saying it is wrong for people to get rewarded for having more children.