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Ending the two-child benefit cap with "half measures” will still see child poverty rise, Rachel Reeves has been warned in a hard-hitting report from the UK’s leading left-wing think tank.

The findings from the Resolution Foundation, whose former director Torsten Bell is now one of Ms Reeves’s Treasury ministers, come amid speculation that the chancellor will lift the cap to a maximum of three children in a bid to appease angry backbenchers.

The think tank warned: “Fully scrapping the two-child limit on benefits is an essential step towards achieving lower child poverty rates

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