Starmer hints at scrapping two-child benefit cap to tackle poverty

Sir Keir Starmer has left the door open to scrapping the two-child benefit cap amid mounting pressure from backbench Labour MPs and Nigel Farage’s Reform UK.

MPs from across Labour have repeatedly urged the prime minister to scrap or ease the limit – first imposed by austerity architect George Osborne in 2015 – amid growing concern over the direction of the party.

Days after Mr Farage said a Reform government would get rid of it entirely, Sir Keir said he is looking at “all options” to lift children out of poverty.

It came just days after education secretary Bridget Phillipson said getting rid of the two-child limit was “on the table” as part of Labour’s delayed child poverty strategy, now expected to be published in the autumn.

“It’s certainly something that we’re considering,” she said. “We’ve always been clear that social security measures are an important part of what the child poverty task force is looking at.”

Speaking to workers at a glass equipment factory in St Helen’s, as part of a press conference aimed at tackling the rise of Reform, Sir Keir said: “One of the proudest things that the last Labour government did was to drive down child poverty, and that’s why we’ve got a task force working on this.

“I think there are a number of components. There isn’t a single bullet, but I’m absolutely determined that we will drive this down, and that’s why we’ll look at all options, always, of driving down child poverty.”

Mr Farage on Tuesday said he would get rid of the two-child cap as part of a drive to make having children easier and increase Britain’s declining birth rate.

Speaking to The Independent after Sir Keir’s press conference, a senior Labour MP said the prime minister “is going to have to” get rid of the cap due to the growing anger on the backbenches.

The prime minister is privately said to be in favour of doing away with the cap – a policy that restricts parents from claiming certain benefits for more than two of their children.

Critics of the policy say removing it would be the most effective way of reducing child poverty amid warnings that as many as 100 children are pulled into poverty every day by the limit.

However, it is thought the cap won’t be lifted until the government publishes its child poverty strategy, which has now been delayed until the autumn.

There is growing pressure on Labour to scrap it, as well as to water down its upcoming welfare cuts, as polling last week showed that almost half of all red wall voters disapprove of the way the government has acted on benefits.

A survey conducted by Merlin Strategy across 42 traditionally red wall seats – those historically held by Labour – 48 per cent of people had a negative view of the government’s handling of benefits policies, while just 25 per cent approved.

Of those who said they voted Labour at the 2024 election, people were divided, with 38 per cent approving and 38 per cent disapproving.

Talk of a U-turn on the cap comes just days after the prime minister – in an attempt to win back disillusioned voters and appease his MPs – announced plans to row back on last year’s controversial decision to means test the winter fuel payment. He told the Commons he would look at increasing the thresholds at which people start to receive the benefit.

The prime minister is also facing a rebellion from MPs over the government’s controversial welfare cuts, which will see personal independence payments (PIP) cut for 800,000 people with disabilities.