Sarah Cattan, director of Nesta’s fairer start mission, said:

“Reducing child poverty is a crucial step towards ensuring every child has an equal chance of developing to their full potential. The abolition today of the two-child limit will lift 290,000 children under the age of five out of poverty. That is literally life-changing and a hugely welcome change in policy.

"In its plan for change, this government committed to breaking down barriers to opportunity and giving children the best start in life. This is vital, generationally important work and the abolition of the ‘cap’ should be part of a broader range of policies to achieve that mission.

"We have more to do. We encourage governments across the UK to continue to focus on integrated family services, high-quality early education, and rigorous implementation of evidence-based parenting programmes. These approaches, in tandem with anti-poverty measures, show strong evidence that they can have transformative impacts on child development. These vital services will together work to maximise the opportunity created by greater financial security, ensuring every child receives the support needed to ensure the best start in life.”