UK (Parliament Politics Magazine) – British Prime Minister Keir Starmer faces calls to scrap the two-child benefit cap, as his child poverty taskforce urges the move before November’s Budget.
As reported by The Independent, Sir Keir Starmer faces mounting pressure to lift the two-child benefit cap, with his child poverty taskforce supporting the proposal.
How will the PM’s taskforce recommend reducing child poverty?
Keir Starmer formed a ministers’ group to tackle child poverty, with recommendations due before Chancellor Rachel Reeves’s November 26 Budget.
The long-delayed report will urge the prime minister to scrap the benefit cap. Experts said it is the most effective way to lift children out of poverty.
The Times reports the taskforce has outlined key points of a child poverty plan, with ending the two-child benefit limit as its major suggestion.
What did Dame Meg Hillier say about scrapping the two-child benefit cap?
Dame Meg Hillier, Parliament’s Treasury committee chair, warned failing to tackle child poverty would be “unconscionable” and said lifting the two-child cap is the most effective step.
During a BBC interview, the senior MP stated,
“I’ve been looking at it in detail, and I’m convinced that the quickest and easiest way to lift 350,000 children out of poverty and 700,000 children out of deep poverty, would be to really pick up the cap.”
Ms Hillier highlighted the last Labour government’s figures on child poverty, stating,
“It was unconscionable to me and many colleagues and people I know up and down the country, particularly in my constituency, to think that we’re not going to be investing in our children.”
She said,
“Whatever the moral and ethical reasons about the children who are sharing shoes and clothes to go to school and taking alternate visits to playing football because they’ve only got one pair of boots to share, that sort of thing… Actually, there’s also hard facts and figures about why we need to invest in our young people.”
Ms Hillier expressed hope when questioned whether the measure would make it into the upcoming Budget, saying, “I would hope so.”
She endorsed ex-Prime Minister Gordon Brown’s call to reform gambling taxes to raise £3.2bn for scrapping the two-child cap.
Andy Burnham and Lucy Powell’s views on scrapping the two-child cap
Greater Manchester Mayor Andy Burnham has urged the government to lift the two-child benefit cap, amid rumors of a Labour leadership challenge.
Deputy leadership hopeful Lucy Powell backs axing the two-child cap, while her competitor, Education Secretary Bridget Phillipson, confirmed it remains “on the table.”
What did Kemi Badenoch say about the two-child benefit cap?
Tory leader Kemi Badenoch posted on X,
“If you’re on benefits, you should make the same responsible choices about having children as everyone else. We must keep the two-child benefit cap.”
She added,
“Labour and Reform want to scrap it. Only Conservatives are serious about living within our means.”
Why is the two-child benefit cap sparking controversy ahead of Labour’s conference?
The two-child benefit cap was introduced by former Tory chancellor George Osborne, preventing families from claiming benefits for any child born after the second since April 2017.
The issue has raised concerns among Labour MPs since the general election, with many surprised the prime minister has not yet scrapped it more than a year into office.
Pressure to lift the measure is increasing, while Ms Reeves faces the challenge of raising tens of billions in tax hikes in the upcoming Budget.
Scrapping the two-child limit would cost around £3bn annually by the end of the decade, pushing the chancellor to make even tougher decisions on spending and taxation.
Days before Labour’s annual conference in Liverpool, the issue is emerging as a central topic for both MPs and activists.
Key facts about the two child benefit cap
The two-child limit restricts benefits to the first two children, applying to any born on or after 6 April 2017. It was introduced to encourage work and reduce welfare spending.
The policy affects 1.6 million children in 470,000 households, with 59% of these households working. Research shows it has minimal effect on employment or family planning but drives child poverty.