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Changes to visa rules in a drive to curb immigration numbers will have a “negative impact” on critical family relationships, the Archbishop of Canterbury has warned.

While the Most Rev Justin Welby said the government was “rightly concerned” with reducing legal migration figures, he warned there would be “a cost to be paid” as a result of some of the restrictions being introduced.

Stressing the importance of families to society, the top Anglican cleric argued the government “must not set a series of hurdles for them to jump over”.

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Mr Welby also said the two-child benefit cap was “not a good policy” and the moral case for scrapping it was “beyond any question”.

Under a package of measures unveiled this week, overseas health and care workers will be prevented from bringing their dependants to the UK, while Britons must be earning at least £38,700 if they want to bring foreign family members.

The dramatic increase of the threshold – more than double the previous limit of £18,600 – to above the median income for a full-time employee has sparked criticism.

Net migration hit a record 745,000 in 2022, although it is estimated to have fallen to 672,000 in the year to June 2023.

The move to limit legal arrivals comes as the government seeks to press ahead with its controversial Rwanda asylum plan in a bid to stop illegal crossings on small boats.

Speaking in parliament, Mr Welby called on the government to take action to promote the “flourishing” of families.

He said: “This week we hear that many people in this country will be prevented from living together with their spouse, child or children, elderly parents, as a result of a big increase in the minimum income requirement for family visas.

“The government is rightly concerned with bringing down the legal migration figures and I’m not, you’ll be relieved to know, going into the politics of that.

“But there is a cost to be paid in terms of the negative impact this will have on married and family relationships for those who live and work and contribute to our life together, particularly in social care.”

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Government unveils immigration plan

The archbishop pressed for the application to policy of a “family test”, introduced in 2014 under then prime minister David Cameron, now Lord Cameron, and said it should be on the front of every piece of legislation.

Mr Welby said: “The state is useful to the family, the family is indispensable to the state. A lack of strong families undermines our whole society.

“Government needs families to work. They must not set a series of hurdles for them to jump over.”

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He also pointed to estimates by campaigners that ditching the two-child benefit limit “would lift a quarter of a million children out of poverty”.

Mr Welby added: “The moral case is beyond any question, yet the unfair penalty applied to additional children affects their educational outcomes, mental and physical health, their likelihood to require public support from public services later on.

“It is not a good policy.

“Will the government and the opposition, should they become the government at some point, consider removing the two-child limit and addressing other systems and policy choices which keep family in poverty?”

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He urged all political parties to “place flourishing families and households as a key objective” within their manifestos at the next general election.

His comments came during the annual debate he leads in the House of Lords, with this year’s topic Love Matters, The Report Of The Archbishops’ Commission On Families and Households.

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Political Traitors: Who can you trust?

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Political Traitors: Who can you trust?

👉Listen to Politics at Sam and Anne’s on your podcast app👈

Sam reveals there might be some Traitors-style plotting going on behind the scenes in government – but from who? And how might Sir Keir Starmer see off this challenge?

Budget speculation continues, and specifically – who is and is not a “working person”? And, should it occur, what would the consequences be of breaking a manifesto commitment? How perilous a moment for Starmer could this be?

And after the BBC’s director general and CEO of news resign, what does Starmer now say about the organisation? And who will come next in the top BBC job?

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Stablecoin demand is growing, and it can push down interest rates: Fed’s Miran

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Stablecoin demand is growing, and it can push down interest rates: Fed’s Miran

A growing demand for US dollar-tied crypto stablecoins could help push down the interest rate, says US Federal Reserve Governor Stephen Miran.

The Donald Trump-appointed Miran told the BCVC summit in New York on Friday that the dollar-pegged crypto tokens could be “putting downward pressure” on the neutral rate, or r-star, that doesn’t stimulate or impede the economy.

If the neutral rate drops, then the central bank would also react by dropping its interest rate, he said.

The total current market cap of all stablecoins sits at $310.7 million according to CoinGecko data, and Miran suggested that Fed research found the market could grow to up to $3 trillion in value in the next five years.

Stephen Miran speaking at a conference in New York on Friday. Source: BCVC

“My thesis is that stablecoins are already increasing demand for US Treasury bills and other dollar-denominated liquid assets by purchasers outside the United States and that this demand will continue growing,” Miran said.

“Stablecoins may become a multitrillion-dollar elephant in the room for central bankers.”