Six Labour Members of Parliament who were previously suspended due to their opposition to the two-child benefit limit have urged Rachel Reeves to completely abolish the “inhumane” policy. In a joint letter addressed to the Chancellor ahead of the upcoming Budget, they emphasized that the Labour government cannot morally defend the continuation of this policy. They argued that eliminating the two-child benefit limit would demonstrate the government’s commitment to alleviating the financial struggles faced by millions of families amidst the escalating cost of living crisis.
The MPs advocating for the policy change, including John McDonnell, Rebecca Long-Bailey, Ian Byrne, Apsana Begum, Richard Burgon, and Imran Hussain, have all had their party whip reinstated following their dissenting votes against the government on this issue last year. They contended that the current policy unfairly penalizes children for circumstances beyond their control, stressing that no Labour government should uphold such a stance. They highlighted the detrimental impact of the two-child cap, asserting that over 100 children are pushed into poverty daily as a result.
They asserted that the most impactful and cost-efficient action the Labour Government could take to reduce child poverty would be to abolish the two-child benefit cap entirely. Therefore, they urged Rachel Reeves to announce the complete abolition of the policy in the upcoming November Budget.
The push for change coincides with Keir Starmer and Rachel Reeves considering either eliminating or softening the policy initially introduced by former Chancellor George Osborne almost a decade ago. This measure restricts Child Tax Credits and Universal Credit to the first two children in a family and has been criticized by charities for perpetuating child poverty.
The government is expected to release its child poverty review findings alongside the Budget, potentially including recommendations regarding the two-child benefit limit. The Resolution Foundation recently cautioned against partial measures, such as transitioning to a three-child limit or reducing child elements for additional children, as these actions could still result in higher child poverty rates by the end of the decade.
In addition, Andy Burnham, the Mayor of Greater Manchester, has joined the calls for scrapping the policy and criticized the decision to withdraw the whip from MPs who opposed the government’s stance last year. Burnham expressed his dismay, highlighting that such disciplinary actions were not common during his tenure under the Labour government led by Brown and Blair.