- Keir Starmer faces revolt from Labour MPs over maintaining Tories’ two-child benefit cap
- The policy affects around 1.6 million children in the UK, leaving low-income families £3,200 worse off per additional child
- Abolishing the cap would cost £1.3 billion but lift 250,000 children out of poverty and 850,000 out of deep poverty
- Starmer cites damage to public finances as reason for maintaining cap, but faces criticism from his own party
As the new Labour government takes office, Keir Starmer is facing immediate pressure from within his own party to scrap the controversial two-child benefit cap introduced by the previous Conservative administration.
The Contentious Two-Child Benefit Cap
The two-child benefit cap, implemented by former Chancellor George Osborne in 2017, restricts universal credit and child tax credit payments to a family’s first two children. This policy is estimated to affect around 1.6 million children in the UK, or approximately one in ten. Low-income families impacted by this measure face an annual shortfall of at least £3,200 per additional child.
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Labour’s Resistance to Change
Despite calls from within his own party and from anti-poverty advocates to abolish the two-child cap, Keir Starmer has resisted making any changes to the policy. Starmer has cited the damage done to the public finances by the previous Conservative government as the reason for maintaining the cap, stating that Labour “would not be able to afford to scrap it.”
Mounting Pressure for Abolition
However, Starmer’s stance has been met with significant criticism from Labour MPs and social policy experts. Meg Hillier, Labour MP and chair of the Commons public accounts committee, has expressed her personal desire to see the cap lifted. Rosie Duffield, a Labour MP on the centre-right of the party, has described the two-child policy as “one of the most distasteful pieces of legislation ever to have been passed in the UK.”
Former Labour shadow chancellor John McDonnell has announced plans to table amendments to the upcoming Budget to scrap the policy, indicating that he believes most Labour MPs would support such a move. The Liberal Democrats, Green Party, Scottish National Party, and independent MPs have also stated that pressuring the new Labour government to change its position on the two-child cap is a key priority.
The Impact on Child Poverty
Abolishing the two-child limit would cost an estimated £1.3 billion per year, but it would also lift 250,000 children out of poverty and an additional 850,000 children out of deep poverty. Campaigners argue that this is the most cost-effective approach to reducing child poverty in the UK.
As Keir Starmer’s Labour government settles in, it faces an immediate challenge from within its own ranks to address the two-child benefit cap. With mounting pressure from opposition parties and anti-poverty advocates, Starmer may be forced to reconsider his position on this contentious policy that has had a significant impact on low-income families and child poverty in the UK.
FAQs
Q: What is the two-child benefit cap?
A: The two-child benefit cap is a policy introduced by the Conservative government in 2017 that restricts universal credit and child tax credit payments to a family’s first two children. This policy is estimated to affect around 1.6 million children in the UK.
Q: Why is Keir Starmer facing criticism for maintaining the two-child benefit cap?
A: Keir Starmer has resisted calls from within his own Labour party and from anti-poverty advocates to abolish the two-child benefit cap. This policy has been criticized as contributing to child poverty, and many Labour MPs and experts argue that it should be scrapped by the new Labour government.
Q: How much would it cost to abolish the two-child benefit cap?
A: Abolishing the two-child limit would cost an estimated £1.3 billion per year. However, it would also lift 250,000 children out of poverty and an additional 850,000 children out of deep poverty, making it a cost-effective approach to reducing child poverty in the UK.
Q: What are the arguments for and against the two-child benefit cap?
A: Supporters of the two-child benefit cap argue that it encourages parents to be more financially responsible and seek employment. Critics argue that the policy is unfair, contributes to child poverty, and disproportionately impacts larger families and minority ethnic households.
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