LABOUR have delayed their flagship child poverty plan until at least the autumn amid fears the financial cost may not be worth the political benefit, according to reports.
The Guardian reported that Chancellor Rachel Reeves and Keir Starmer's chief of staff Morgan McSweeney have pushed the plan to the autumn budget.
This is despite tens of thousands more children being pushed into poverty as a result of the decision.
Experts estimate 100 children are pulled into poverty every day by the cap, meaning up to 20,000 could be affected by a six-month delay.
Sources told The Guardian that Reeves did not want to commit to scrapping the cap without knowing the full cost, and McSweeney queried the political benefit with the public, despite it appeasing Labour MPs.
“He doesn’t think they would be getting enough political capital with voters as a result of the money they would have to put in,” one source said.
The benefit cap also pushes 30,000 children into deep poverty when parents’ capacity to work is limited.
Ministers had been said to be considering scrapping the two-child benefit cap to win over Labour MPs, though Downing Street had insisted such a move would not be a “silver bullet” for ending child poverty.
Liz Kendall added: “There is a lot, lot more to do, but we are absolutely determined to drive down poverty and drive up opportunity to give people the chance of a better future.”
A Number 10 source denied the reports, and said: “The Government is determined to bring down child poverty. We’re not waiting to act."
Ministers are reportedly planning to announce a package of up to £750 million at the spending review in June to tackle child poverty , with the final figure yet to be agreed.
It is expected to focus on measures to tackle the root causes of poverty, such as work, affordable housing and education. However, sources suggested this could include “rebadging” existing commitments “but putting child poverty in the press release”.
