For the first time, a cabinet minister has announced that the government is open to removing the two-child benefit cap as part of its review into child poverty. This statement comes as increasing support from Labour MPs pushes for an amendment to abolish the cap.
In the coming days, Labour leader Keir Starmer will face significant scrutiny over the party’s decision to delay eliminating the cap.
On Monday, Education Secretary Bridget Phillipson indicated that removing the cap is under consideration by the child poverty taskforce. This taskforce will explore various measures to address child poverty in the coming months. Phillipson noted, however, that removing the cap is among the most costly options.
During the king’s speech debate over the next two days, MPs from Labour, the Scottish National Party, the Liberal Democrats, and some Conservatives are expected to criticize the government. There may be a vote on an amendment if it is selected by the speaker on Tuesday.
Phillipson told Sky News that the government would evaluate the removal of the two-child benefit cap as part of a broader set of potential measures to reduce child poverty.
“Unfortunately, it’s also a very expensive measure, but it will be considered as one of several options for lifting children out of poverty,” she said.
Phillipson highlighted that housing is a major issue and noted that many families are struggling despite having at least one working adult in the household. She emphasized that the government will examine all possible solutions to combat child poverty.
Chancellor Rachel Reeves stated on BBC that she could not commit to scrapping the cap without identifying where the £3 billion annual cost would come from. “Without knowing how to fund it, we can’t promise to eliminate the cap. This applies to the two-child limit and other measures,” she said.
Over a dozen backbenchers reportedly support an amendment to the king’s speech, and the SNP has proposed an amendment to remove the cap, which restricts universal credit or child tax credit claims for a third child, with some exceptions.
Labour MP Rosie Duffield, representing Canterbury, criticized the cap in The Sunday Times, calling it “sinister and overtly sexist.” She also condemned the “rape clause,” which allows exceptions for children conceived through assault. “This policy forces women to disclose to strangers that their children were conceived through rape in order to receive benefits,” she said.
The two-child benefit cap currently affects 1.6 million children, according to the Department for Work and Pensions.
Charities and organizations consulted by Work and Pensions Secretary Liz Kendall have largely called for the cap’s removal. Save the Children described scrapping the cap as the “most cost-effective way to reduce child poverty,” while the TUC stated that punitive policies like the cap have caused widespread suffering. The Resolution Foundation argued that the costs of the cap are low compared to the harm it inflicts, and removing it would be an effective way to decrease child poverty rates.