UK (Parliament Politics Magazine) – Labour minister Stephen Kinnock says lifting the two-child benefit cap is under discussion, but final Budget decisions rest with Chancellor Rachel Reeves.
As reported by The Telegraph, Stephen Kinnock signals potential lift of two-child benefit cap in autumn under Rachel Reeves.
Stephen Kinnock’s views on lifting the two-child benefit cap
Stephen Kinnock confirmed talks are ongoing after his father, Lord Kinnock, urged Labour to scrap the cap.
He said Rachel Reeves will deliver her second Budget in October, just weeks after Labour’s annual conference in Liverpool.
Over the weekend, Lord Kinnock said he wants the Government to act, arguing it would lift thousands of children out of poverty.
When questioned about his father’s comments, Mr Kinnock, the Care Minister, stated,
“Well, I’m not going to speculate about the Budget, which is a matter for the Chancellor. But it’s absolutely clear that as things stand, lifting the two-child benefit cap is not government policy.”
In response to the question whether his father’s remarks were causing government tensions, he responded,
“Dad’s the former Labour leader and has strong opinions on many issues. But as I say, there is only one person right now who’s making decisions about how the budget will look, of course, working closely together with the prime minister and the rest of the cabinet, and that is Rachel Reeves, the chancellor.”
He said,
“If my dad has views about these things, he’s, of course, always welcome to contact Rachel. I’m sure she’d be happy to have a chat with him.”
Asked about differing views between Lord Kinnock and Sir Keir, he replied,
“You’ve invited me onto this programme as a Government minister, and I speak on behalf of the Government.”
Mr Kinnock stated,
“I am very clear that any changes to our fiscal policy are a matter for the Chancellor and only the Chancellor. So those conversations are ongoing and I’m not going to preempt them.”
He added,
“And government ministers should not be coming on national broadcasts to preempt what the Chancellor is going to come forward with in October.”
What did Stephen Kinnock say about supporting Ukraine at the White House?
The care minister said,
“I think it’s very much a team effort, which is about saying we’ve got to now stand, as we always have, shoulder to shoulder with Ukraine, with President Zelenskyy.”
Mr Kinnock stated,
“We’ve got to send a very clear signal to the world, including to Moscow, that European leaders are ready to put together a very strong ironclad security guarantee so that whatever is negotiated, whatever deal is done – of course, only with the agreement of President Zelenskyy and the Ukrainian people – that agreement will be backed up by an international security guarantee.”
He added that he is
“very encouraged to see the United States making positive noises about that.”
When asked if Ukraine could give up territory, the minister insisted any deal must respect Ukraine’s sovereignty and territorial integrity.
What did Lord Kinnock say about lifting the two-child benefit cap?
During an interview, when asked about the child benefit cap, Labour peer and former party leader stated,
“I would want them to do it. They may not be able to do it all at once, but I want them to move in that direction. Because the figures are that, if that did occur, it would mean that about 600,000 kids, fewer, are in poverty.”
Lord Kinnock said,
“Yes, I would say that. It might have to be done in a phased fashion – simply because of the revenue implications – but heading strongly and evidently in that direction is the way to go.”
He stated,
“I think people would see the justification of increasing taxes on assets and the very, very highly paid – I’m talking about the top one per cent – to make the transfer directly to reduce child poverty. I know it’s the economics of Robin Hood, but I don’t think there is anything bad about that.”
What did Bridget Phillipson say about the future of the two-child benefit cap?
Education Secretary Bridget Phillipson stated,
“The decisions that have been taken this last week do make future decisions harder.”
She added,
“But all of that said, we will look at this collectively in terms of all of the ways that we can lift children out of poverty.”
How did experts warn the Chancellor over a £50bn budget gap?
Stephen Kinnock confirmed that Ms Reeves will deliver her third Budget in October. In her first Budget, she raised a record £40bn in taxes, including £25bn from employers’ National Insurance.
Business closures hit a post-pandemic high, while changes to agricultural property relief also forced many family farms to close.
According to the Chancellor, Labour has “fixed the foundations,” and party sources said the next phase of Sir Keir’s premiership aims to deliver real change.
Britain’s top economic institute said the Chancellor must raise taxes to quickly fill a £50bn gap in government finances.
The National Institute of Economic and Social Research said slow growth, a weak jobs market, and changes to welfare have pushed government finances further into the red.
Key details about the two-child benefit cap
The two-child limit cuts UC and the Child Tax Credit for third or more children. It affected 1.67 million children and 470,000 households. About 350,000 children have been pushed into poverty, with 700,000 more seeing their situation worsen.
Campaigners say ending the cap could lift 250,000–500,000 children out of poverty. The estimated cost of removing the cap would be between £2.7bn and £4.5bn annually.