Business
Rachel Reeves suggests family benefit limits will be lifted
Paul SeddonPolitical reporter
Rachel Reeves has suggested she favours removing limits on benefits linked to family size at this month’s Budget.
The chancellor told the BBC it was not right that children in bigger families were “penalised” through “no fault of their own”.
The comments are a sign she could remove the two-child limit on working-age benefits introduced under the Conservatives in 2017.
Some Labour MPs have been calling for a full reversal of the policy, amid reports she was considering paring back payments after two children instead.
In September, the Guardian reported that Treasury officials were considering a tapered approach, under which parents would receive most benefits for their first child and less for subsequent children.
Other options under consideration included limiting additional benefits to three or four children, the newspaper reported.
But speaking to Matt Chorley on BBC Radio 5 Live, Reeves suggested she did not want to see benefits limited according to family size.
“I don’t think that it’s right that a child is penalised because they are in a bigger family, through no fault of their own,” she added.
“And so we will take action on child poverty. The last Labour government proudly reduced child poverty, and we will reduce child poverty as well.”
She added there were “plenty of reasons why” parents who decided to have three or four children could see their financial circumstances change.
Manifesto pledges
Elsewhere in her interview, she all but confirmed the government plans to break Labour’s manifesto pledge at last year’s general election not to raise income tax rates, VAT or National Insurance.
“It would of course be possible to stick with the manifesto commitments. But that would require things like deep cuts in capital spending,” she added.
“What I can promise now is I will always do what I think is right for our country. Not the politically easy choice, but the things that I think are necessary to put our country on the right path,” she added.
Labour’s 2024 election manifesto pledged not to raise the basic, higher, or additional rates of income tax, or National Insurance – prompting a row last autumn when Reeves announced a hike in the contributions paid by employers.
It also promised not to raise Value Added Tax (VAT), a sales tax, although the manifesto did not specify whether this applied to the rates, or which products are subject to the charge.
The chancellor has not ruled out continuing to freeze income tax thresholds beyond the 2028 date fixed by the last government, allowing more people to be dragged into higher bands as their wages rise over time.
Pressed on whether she could have avoided tax hikes through lower public spending, she said she was “not going to apologise” for increased funding for the NHS, adding that reducing waiting lists was one of her three Budget priorities.
She also claimed that some of the spending she unveiled at June’s spending review had been pencilled in, but not properly funded, by the Tories.
‘Same choices’
The two-child cap prevents households on universal or child tax credit from receiving payments for a third or subsequent child born after April 2017.
This is different to child benefit, which is paid to families where the highest-earning parent earns less than £80,000.
Separately, there is also an overall cap on the amount of benefits working-age families can claim, which has been in place since 2013.
The Institute for Fiscal Studies think tank estimates fully reversing the two-child benefit cap could take 630,000 children out of absolute poverty, defined as households with an income below 60% median average, at a cost of £3.6bn a year.
Pressure to ditch the limit increased during the recent Labour deputy leadership contest, where successful candidate Lucy Powell and runner-up Bridget Phillipson both indicated they favoured more action on child poverty.
Reform UK is pledging to scrap the limit for working British couples if it wins power, although the Conservatives say the cap should remain in place, forcing a symbolic vote on the issue in the House of Commons in September.
Speaking after the vote, Tory leader said her party believes “those on welfare should have to make the same choices as those who aren’t,” and Labour and Reform were expecting working people to pay for “unlimited handouts”.
The average woman employee “effectively works for 47 days of the year for free,” according to the Trades Union Congress.
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Gold, Silver likely to consolidate in coming week amid Fed rate-cut uncertainty: Analysts – The Times of India
Precious metal prices are expected to remain volatile and witness further consolidation in the coming week as investors track key US economic indicators, including inflation data, GDP readings and signals from the Federal Reserve, analysts said.Traders are also likely to monitor US labour market data, the minutes of the Federal Open Market Committee (FOMC) meeting and speeches from Fed officials for clarity on the timing and pace of potential rate cuts, as per news agency PTI.
Volatility to persist on US GDP, PCE data
Pranav Mer, vice president, EBG – commodity & currency research at JM Financial Services Ltd, said gold and silver prices may continue to witness consolidative moves, though volatility is expected to persist.“Gold and silver prices may continue to see more consolidative moves but volatility will prevail with focus on incoming US data on GDP and the Personal Consumption Expenditures (PCE) inflation numbers and Federal Reserve official’s commentary,” he said, as per PTI.On the domestic front, silver futures on the Multi Commodity Exchange (MCX) declined Rs 5,532, or 2.2 per cent, over the past week, while gold rose Rs 444, or 0.3 per cent.
Gold corrects sharply in February
Prathamesh Mallya, DVP – research, non-agri commodities and currencies at Angel One, said gold prices have corrected in February.“Gold prices have fallen in February 2026, with prices correcting from highs of Rs 1,80,000 per 10 grams to around Rs 1,53,800 per 10 grams as on February 13,” he said, as per PTI.He attributed the weakness to stronger-than-expected US employment data, which has reduced expectations of near-term rate cuts and weighed on gold prices in the past week.“However, the yellow metal’s safe haven appeal remains intact on account of geopolitical tensions, and strong buying ahead of the Lunar New Year. It’s a tug of war between bears and bulls this week, and the volatility will continue in the week ahead,” Mallya added.
International trends and market drivers
In the international market, Comex gold futures gained $84, or 1.7 per cent, during the week, while silver edged up marginally to close at $77.27 per ounce.Mer said gold prices moved between gains and losses through most of the trading sessions but managed to end the week higher.“Gold prices see-sawed between gains and losses for most part of the trading session, but managed to close the week in positive and above $5,000 per ounce in the overseas market.“The bullions are passing through a phase of consolidation amid a lack of clarity among traders as they remain divided over the price direction and look for fresh fundamental triggers,” he said.Analysts noted that central bank buying, safe-haven demand amid a sharp sell-off in global technology and AI stocks, and a softer dollar index provided support to bullion prices.However, mixed physical demand from India and China, profit-booking by ETF investors and strong US macroeconomic data capped the upside.Mer said silver also experienced two-way price movements during the week.“The white metal was weighed by corrections in industrial metals and profit-booking after failing to breach key technical resistance. It also faced pressure from the tech-led global equity sell-off, which reduced risk appetite across asset classes,” he added.Analysts said both gold and silver are likely to remain range-bound in the near term as investors await clearer signals on the Federal Reserve’s monetary policy trajectory and broader global economic trends.
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Foreign Portfolio Investors put Rs 19,675 crore into Indian equities in early February, ending three months of selling amid global cues and a US-India trade pact.
US-India trade deal hopes lift FPI inflows to Rs 19,675 cr in early Feb
Foreign Portfolio Investors Reverse Trend With Rs 19,675 Crore February Buying: Foreign Portfolio Investors (FPIs) made a notable comeback in early February, infusing Rs 19,675 crore into Indian equities during the first half of the month, aided by improving global conditions and the US-India trade agreement.
This marks a clear shift after three consecutive months of net selling. Depository data shows FPIs withdrew Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November.
Even with the renewed buying in February, the broader trend for 2025 remains negative. So far this year, foreign investors have pulled out a net Rs 1.66 lakh crore (USD 18.9 billion) from Indian equities, making it one of the weakest periods for overseas inflows in recent times. Currency volatility, global trade tensions, concerns over potential US tariffs, and elevated valuations had weighed heavily on flows earlier.
Global Cues And Domestic Stability Support Recovery
Himanshu Srivastava, Principal Manager–Research at Morningstar Investment Research India, as quoted by PTI, said the latest inflows were largely driven by easing global macro pressures. Softer US inflation data improved expectations around the interest rate cycle, helping stabilise bond yields and the US dollar. This, in turn, enhanced investor appetite for emerging markets such as India.
On the domestic front, stable inflation, resilient macro indicators, and corporate earnings largely in line with expectations strengthened confidence in India’s economic trajectory, he noted.
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, also attributed the renewed interest to the US-India trade pact, the growth-oriented Union Budget 2026, easing global trade uncertainties, and steady domestic interest rates.
Volatility Persists Despite Net Buying Days
FPIs were net buyers in seven out of eleven trading sessions in February up to the 13th, turning sellers on four occasions. However, cumulative data indicates a net equity outflow of ₹1,374 crore so far this month.
The divergence was largely due to a sharp sell-off of Rs 7,395 crore on February 13, when the Nifty dropped 336 points. The period also witnessed substantial selling in IT stocks amid the so-called “Anthropic shock.” VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said as quoted by PTI, foreign investors likely reduced exposure to IT stocks aggressively in the cash market, as the IT index fell 8.2 percent in the week ended February 13.
(With PTI Inputs)
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February 15, 2026, 16:54 IST
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