The Work and Pensions Secretary has scrapped a controversial plan to extend a benefits cap on families with more than two children.
Amber Rudd announced that she will reverse plans to extend the cap to families with children born before April 2017, which was when the policy was first introduced.
Under the policy, child benefits are not paid for third or subsequent children, and this was set to be extended to a further 15,000 families next month.
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In an interview with Sky News, Rudd said the U-turn was an attempt to "build confidence" in Universal Credit, and prove that it was a "fair and compassionate" system.
"It's right that we have a two-child policy when people are thinking about having a third child. People on low income and benefits need to consider what sort of funds they've got," she said.
"But I don't think it's right that you have this existing two-child policy that was introduced recently acting retrospectively for people who might have three, four, or five children."