Six Labour Members of Parliament who were previously suspended due to their opposition to the two-child benefit limit are urging Rachel Reeves to completely abolish the “harsh” policy. They argue that the Labour government cannot reasonably defend the policy and that eliminating it would demonstrate a commitment to addressing the financial struggles faced by countless families.
In a joint letter to the Chancellor in anticipation of the upcoming Budget, the MPs, including John McDonnell, Rebecca Long-Bailey, Ian Byrne, Apsana Begum, Richard Burgon, and Imran Hussain, emphasized the detrimental impact of the two-child benefit limit on children, describing it as an unjust punishment based on birth circumstances. They emphasized that the continuation of this policy results in over 100 children falling into poverty every day.
The MPs believe that scrapping the two-child limit would be the most significant and cost-effective action the Labour Government could take to alleviate child poverty. They are calling on Rachel Reeves to announce the full abolition of the two-child benefit cap in the November Budget.
This move is being pressed as Keir Starmer and Rachel Reeves are contemplating either abolishing or softening the policy initially introduced by George Osborne nearly ten years ago. The restriction of Child Tax Credits and Universal Credit to the first two children in a family has been criticized by charities for perpetuating child poverty.
The government is expected to release its child poverty review findings alongside the Budget, which may include suggestions regarding the two-child benefit limit. However, experts caution that partial measures, such as implementing a three-child limit or reducing benefits for additional children, would still result in higher child poverty rates by the end of the decade.
Andy Burnham, the Mayor of Greater Manchester, has also voiced his support for scrapping the policy and criticized the decision to withdraw party support from the MPs who opposed the government last year. Burnham highlighted that such actions contradict the principles he recalls from his time under previous Labour administrations.
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