The 2025 Budget scraps the two-child benefit cap, lifting thousands of children out of poverty — but fails to address the housing crisis. Jimmy’s Cambridge calls for urgent action on homelessness and housing support.
A Welcome Step in Tackling Child Poverty
This November’s Budget marks a long-awaited and important step forward in the fight against child poverty: the scrapping of the two-child benefit cap.
Introduced in 2017, the policy limited financial support for families with more than two children, regardless of their circumstances. According to the Office for Budget Responsibility, removing the cap will lift 450,000 children out of poverty by 2029/30 and increase benefits for 560,000 families by an average of £5,310.
This is a major victory for campaigners who have long argued that the two-child limit unfairly penalised larger families and deepened financial hardship.
The Impact on Families
As Katherine Brickell and Mel Nowicki note in Debt Trap Nation:
“That this rule was originally put in place and has remained so is repugnant. Four and a half million children in the UK currently live in poverty.”
At Jimmy’s, we see daily how financial pressure pushes people closer to homelessness. The removal of the cap will make a real difference for struggling parents — helping them cover essentials, keep up with rent, and build greater stability for their children.
Homelessness Left Unaddressed
While the Budget takes an important step on child poverty, it remains silent on homelessness. Housing benefit continues to be frozen, despite rents continuing to rise sharply across the country.
In cities like Cambridge, where housing costs are among the highest in the UK, housing benefit often covers only a fraction of rental prices. This leaves many families with impossible choices — cutting back on essentials, falling into debt, or relying on temporary accommodation.
When housing benefit does not reflect real market rents, the result is a cycle of instability: overcrowding, eviction risk, and reliance on emergency housing. Without stronger housing support, thousands remain at risk of homelessness — undermining progress made in tackling child poverty.
Looking Ahead: A Chance to Do Better
The government’s upcoming homelessness strategy is a crucial opportunity to address these issues. Jimmy’s urges policymakers to:
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Restore Local Housing Allowance (LHA) to match real market rents.
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Invest in genuinely affordable and social housing.
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Strengthen homelessness prevention funding for councils and charities.
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Ensure no child or family is left without a safe place to live.
Without meaningful investment in housing, poverty reduction alone cannot end homelessness.
Our Commitment
At Jimmy’s Cambridge, we remain committed to supporting people affected by poverty and homelessness. Everyone deserves a safe, secure home — and policies must reflect that fundamental right.
We will continue to:
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Provide emergency and supported accommodation.
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Advocate for fair, long-term housing solutions.
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Work with our community to end homelessness in Cambridge.
Join Us
You can be part of the solution.
✅ Donate to support our work.
✅ Volunteer your time or skills.
✅ Share this message to raise awareness.
Together, we can build a future where no one faces homelessness — and where every child has the stability they need to thrive.
