- Sir Keir Starmer's Labour Party has reportedly decided against scrapping the controversial two-child benefit cap.
- This decision follows a U-turn on welfare cuts, which has left a significant £5bn hole in Labour's spending plans.
- Senior Labour figures have indicated that potential tax increases may be necessary to offset the financial implications of not approving welfare changes.
- Education Secretary Bridget Phillipson stated that recent decisions have made future spending choices, particularly those aimed at tackling child poverty, more challenging.
- The move is expected to cause further discontent among Labour backbenchers, while critics argue the cap contributes to child poverty.
IN FULL
Plan to scrap two-child benefit cap ‘dead in the water’ after welfare U-turn
