The thorn in Labour's side: Will Starmer scrap the two-child benefit cap?

The two-child benefit cap is fast becoming a thorn in Labour’s side.  

The cap, which restricts the ability of some families to claim benefits for more than two children, came into effect in April 2017.

At the time, the then-Conservative government insisted the policy would make the welfare system more affordable and ensure those on benefits faced the "same financial choices about having children as those supporting themselves solely through work".  

But the cap has since attracted fierce criticism from children's charities, religious figures and increasingly Labour politicians, who say it has exacerbated the number of children in poverty in the UK - which now stands at 4.3 million.   

During the Labour leadership race in 2020, Sir Keir Starmer advocated scrapping the policy as part of plans to "tackle the vast social injustice in our country".  

He later reversed his position in 2023, much to the frustration of those on the left of his party - citing the tough economic conditions that a Labour government could be set to inherit and an unwillingness to make unfunded spending commitments.  

But with Labour now in power, many within the party have begun to privately - and publicly -voice alarm at the continuation of the policy.  

Fresh data published on Thursday has revealed that 1.6 million children now live in households impacted by the policy, compared to 1.5 million to April 2023. 

ITV News understands that some MPs are discussing how to force a vote or debate on the issue, ahead of the King’s Speech, which will outline Starmer's parliamentary agenda.  

Labour’s Kim Johnson has long campaigned for the policy to be scrapped and is planning on laying an amendment to Speech, due to take place next week.  

"The families I represent just cannot wait any longer," she told ITV News.

"Labour has a huge task to undo 14 years of Tory decay and will have to make difficult decisions about what to prioritise.

"But I would like to see lifting the two child benefits cap a priority for the new government as the most cost effective and most impactful way to immediately alleviate child poverty in communities like mine across the country," she said.

Another Labour MP told ITV News that the "strength of opinion" on this issue was growing, and in recent days other Labour parliamentarians such as Ian Byrne and Andy McDonald have also vocalised support for scrapping the policy on social media.  

Former Shadow Chancellor John McDonnell told the Mirror newspaper that he was also considering tabling amendments to the King’s Speech and the upcoming Autumn Budget. 

"It's inevitable the Government are going to have to concede on this and they might as well just announce it before the King's Speech so we don't need to have any argument about this," he said. 

ITV News understands that former Labour leader and current independent MP Jeremy Corbyn has met with other independent parliamentarians to discuss how to best to force a change in the government’s position.  

The Liberal Democrats, SNP and Green Party also all have made clear that they remain in favour of scrapping the policy. 

The Resolution Foundation has estimated that scrapping the policy would lift around 490,000 children out of poverty, at the cost of between £2.5 billion and £3.6 billion.  

In their manifesto, Labour promised an "ambitious strategy to reduce child poverty", including introducing free breakfast clubs within primary schools. 

And in a statement, Work and Pensions Secretary Liz Kendall said: "Too many children are growing up in poverty and this is a stain on our society."

"We will work to give every child the best start in life by delivering our manifesto commitment to implement an ambitious strategy to reduce child poverty.

"I will hold critical meetings with charities and experts next week to get this urgent work under way," she said.

Many Labour MPs in particular hope that this punchy rhetoric will eventually be accompanied with a change of position from the government.

But if it isn't, Starmer could find himself facing a growing number of unhappy MPs.

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