Six Labour Members of Parliament who were previously suspended for opposing the two-child benefit limit are urging Rachel Reeves to completely abolish the “inhumane” policy. They emphasized that the Labour government cannot morally defend maintaining the policy and should eliminate it to address the financial struggles faced by numerous families.
In a joint letter to the Chancellor ahead of the upcoming Budget announcement, the MPs, including John McDonnell, Rebecca Long-Bailey, Ian Byrne, Apsana Begum, Richard Burgon, and Imran Hussain, highlighted the detrimental impact of the two-child benefit limit on children, labeling it as unjustifiable. They stressed that removing this cap would be the most significant and cost-effective action the Labour Government could take to alleviate child poverty.
Pressure is mounting on Keir Starmer and Rachel Reeves to reconsider or soften the policy established by former Chancellor George Osborne almost a decade ago, which restricts Child Tax Credits and Universal Credit to the first two children in a family. Charities have criticized this policy for perpetuating child poverty.
The government is expected to release findings from its child poverty review alongside the Budget, which may include recommendations regarding the two-child benefit limit. There are concerns that partial measures, such as transitioning to 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 joined the calls for abolishing the policy and criticized the decision to withdraw party support from MPs who opposed the government on this issue. He emphasized the importance of allowing MPs to take principled stances without facing punitive actions within the party.