UK (Parliament Politics Magazine) – British PM Sir Keir Starmer hints at ending the two-child benefit cap, pledging major Budget measures to tackle child poverty and support low-income families.
As reported by The Mirror, Sir Keir Starmer reaffirmed his commitment to tackling child poverty, calling the figure of 4.5 million children “unacceptable.”
The prime minister confirmed that steps to tackle child poverty will be announced in the upcoming Budget.
It follows Chancellor Rachel Reeves’ hints on 10 November that the two-child benefit cap on Universal Credit will be removed.
What did Keir Starmer say about new measures to reduce child poverty?
Sir Keir Starmer said,
“I can tell you in no uncertain terms, I am determined to drive child poverty down. It is what the last Labour government did, and it is one of the things we are proudest of. I am personally determined that is what we’re going to do. You won’t have to wait much longer to see what the measures are.”
The prime minister stated,
“Some of them are already in place – the free school meals, the breakfast clubs, free childcare – but look, we need to do more than that. I can look you in the eye and tell you I am personally committed to driving down child poverty.”
During an interview, when questioned about the two-child benefit limit, he responded,
“You won’t have to wait much longer – but I wouldn’t be telling you we’re going to drive down child poverty if I wasn’t clear that we will be taking a number of measures in order to do so.”
Mr Starmer stressed Labour’s commitment to the working class, saying the party has
“always been and will remain their champion.”
As part of a child poverty review, Labour’s government is reassessing the 2017 Conservative policy ahead of the Budget. Reports indicate the government may alter the existing policy, considering a potential shift to a three-child benefit limit.
What did Rachel Reeves say about tackling child poverty and family size?
Chancellor Rachel Reeves hints at scrapping the two-child benefit cap, calling it unfair for children in larger families and pledging action on poverty.
She said,
“In the end, a child should not be penalised because their parents don’t have very much money. Now, in many cases you might have a mum and a dad who were both in work, but perhaps one of them has developed a chronic illness, perhaps one of them has passed away.”
The chancellor stated,
“There are plenty of reasons why people make decisions to have three, four children, but then find themselves in difficult times.”
She added,
“Lots and lots of different reasons why families change shape and size over time, and 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.”
Ms Reeves continued,
“We will take action on child poverty. The last Labour government proudly reduced child poverty and we will reduce child poverty as well.”
How did Gordon Brown respond to the upcoming Budget on child benefits?
Former Prime Minister Gordon Brown said he is “confident” the two-child rule will be changed, urging Rachel Reeves to fund it through a gambling tax.
The 10-year chancellor has consistently urged ending the cap, restricting benefits to only the first two children.
Mr Brown stated,
“I am confident that the two-child rule will be addressed. We’re waiting for Rachel Reeves’s budget, which I think will mention this.”
He said,
“Keir Starmer, I know is personally concerned and interested in this. So I’m hopeful that in the next few weeks we’ll see the kind of action that we’ve been talking about.”
Mr Brown has focused on ending child poverty and called for a gambling tax, saying,
“We tax cigarettes at 80%, we tax alcohol at 70%, but the online gambling tax is 21%. So there’s a big case for change.”
The ex-PM added,
“I think they [gambling companies] could well afford to pay a tax – and I want that money to go to child poverty. So, move the money from, if you like, the bad, by taxing it. And put it to good, which is children taken out of poverty.”
What is the two-child benefit rule?
Under the two-child benefit limit, parents cannot claim for a third child. Introduced by the Tories in April 2017, it applies only to children born after that date.
Then-chancellor George Osborne announced the measure as part of wider benefit reforms, saying it aimed to encourage recipients to follow the same work-based choices as others.
The Resolution Foundation suggested removing the cap may cost £3.5bn by 2029-2030, while CPAG estimated a lower cost of £2bn.
According to the Child Poverty Action Group, the two-child limit pushes 109 children into poverty each day.
It revealed that scrapping the policy would instantly help 350,000 children, for £2bn, while reducing poverty for another 800,000.
