Education Secretary Bridget Phillipson has said there is “real urgency” to scrapping the two-child benefit cap amid speculation it could be lifted in the upcoming budget.
The two-child limit was brought in by the Conservatives and restricts child tax credit and universal credit (UC) to the first two children in most households.
Campaigners say it pulls more than 100 children across the UK into poverty every day.
The Cabinet minister and Labour deputy leadership hopeful said she was “clear about the evidence” and what needs to be done about the policy.
Asked if it needs to be lifted now, she told BBC Radio 4’s Political Thinking: “There’s a real urgency about this because every year that passes as children are born, as they move into that system, the numbers go up, child poverty rates increase.”
She added: “This was a Tory policy that’s had a devastating impact on children and we’ll sort it.”
Chancellor Rachel Reeves did not deny a report that she planned to lift the cap when asked about it at the Labour party conference.
Ms Phillipson is up against former Commons leader Lucy Powell in the race to replace Angela Rayner as deputy leader following her resignation over her tax affairs.
Although Ms Phillipson gained more nominations from her fellow MPs, it is Ms Powell who has emerged as the frontrunner among Labour members.
Ms Powell has pitched herself as an outside candidate and an “independent voice” after being sacked from her ministerial role in the recent reshuffle.
Ms Phillipson told the BBC she would have “tough conversations” with colleagues if picked as deputy leader but said “you won’t read about it in the newspapers because I want Labour to win the next election”.
