THE Scottish Government have already pledged to mitigate Westminster’s two-child benefit cap, but UK Labour appears to have got in a muddle over their position on the policy.
Reports suggest the “cruel” policy could be for the scrapheap, but ministers wouldn’t go so far as to confirm the move on Sunday’s broadcast round.
What is it? Are Labour going to scrap it, and if so, when? We’ve pulled together everything you need to know, below.
What is the two-child benefit cap?
Introduced by the Conservative government in 2017, the two-child benefit cap prevents parents from claiming child benefit or universal credit for more than two children.
The End Poverty Coalition have said removing the cap would lift 250,000 children across the UK out of poverty.
The Resolution Foundation think tank warned that without reversing the policy, the number of children in poverty will increase from 4.5 million to 4.8m by 2029-30. They say lifting the cap would lift 470,000 children out of poverty.
North of the border, the Scottish Government has pledged that families who have been impacted by the two-child cap will receive payments by April next year.
The policy is estimated to cost the Government £200 million per year by 2029, according to the Scottish Fiscal Commission, rising from £155 million in 2026-27.
What have reports said?
On Sunday, the Observer reported that Starmer wants to scrap the two-child benefit cap and has told the Treasury to find ways to fund the policy.
The Prime Minister reportedly “privately” made clear he would axe the limit to tackle child poverty.
“Keir wants to end the two-child cap - he thinks it’s the right thing to do,” one minister told the newspaper.
“It’s the best and most cost-effective way to reduce child poverty. The alternatives cost more and are less effective.”
The change would cost around £3.5 billion a year.
When could it be scrapped?
Last week it emerged that the child poverty strategy, due in spring, had been delayed until autumn. This is understood to allow funding of the reforms and benefit changes to be set out in the Budget.
The next Budget will be in October or November 2025, but no official date has been set.
Some aspects are reportedly to be announced before summer, but no final decision has been made, according to the Observer.
What has the UK Government’s position been previously?
Starmer notoriously withdrew the whip from seven Labour MPs last year, after they voted against the government on the two-child cap.
The SNP brought an amendment to the King’s Speech calling for the policy to be axed, but the vote was defeated by 101 votes to 361 in favour of keeping the policy, which saw Labour MPs join the Tories in the “no” lobby.
The party had previously opposed the policy, with deputy leader of Scottish Labour Jackie Baillie having once compared it with China’s “one-child” limit.
What has the UK Government said?
On Sky’s Sunday with Trevor Phillips, Deputy Prime Minister refused to say if the UK Government will scrap the two-child cap on benefits.
Asked if lifting the cap is a good idea or not, she said: “This is what we’re looking at as part of the child task force. In the round, there are a number of pressures on families at the moment.”
She added that “work is a way of getting out of poverty”.
Pressed on whether she thinks lifting the cap would be a good idea or not, Rayner said: “Well lifting any measures that will alleviate poverty on the poorest families is not a bad idea.”
What about other politicians?
According to the Sunday Telegraph, Nigel Farage’s Reform UK is set to commit to scrapping the two-child benefit cap as well as restoring the Winter Fuel Payment to all pensioners. Farage is expected to make the announcement in a speech next week, in a bid to appeal to leftwing voters.
A Reform source told the Telegraph: “We’re against the two-child cap and we’d go further on winter fuel by bringing the payment back for everyone.
“That’s already outflanking Labour.”
In response to claims Reform will back scrapping the benefit cap, Rayner told Sky News: “Nigel Farage comes up with lots of ideas, not necessarily good ideas, and he doesn’t know how to pay for them.”
