SCRAPPING the two-child limit would lift thousands of children out of poverty and inject millions into local economies, new figures revealed today.

End Child Poverty Coalition released new data ahead of the eighth anniversary of the implementation of the two-child limit to benefit payments on Sunday.

It found that on average, one in nine children live in a family affected by the two-child limit.

Rates in some constituencies are much higher than others, climbing to one in four in Leeds South, and one in three in Hackney North and Stoke Newington.

The coalition also found that areas with more families affected by the two-child limit tend to have higher levels of child poverty.

It estimated that constituencies with the highest number of children affected by the policy would see millions injected into their local economy if it was scrapped.

Liverpool Riverside, ranked the most deprived constituency in England, could gain £5.2 million annually, the coalition said.

Birmingham Ladywood could see a £16m increase, and Bradford East could yield an extra £11m.

It highlighted that it was an important issue for Labour-held constituencies, with them representing 17 out of the 20 areas that were worst impacted.

Coalition chairman Joseph Howes said: “Scrapping the two-child limit is a crucial first step to address rising child poverty across the UK.

“By doing this the government could also see a boost to local economies, targeting some of the most deprived areas of the country. 

“The government must scrap this policy as part of their soon to be published strategy to tackle child poverty.”

The Department for Work and Pensions was contacted for comment.