MPs repeat plea for Government to lift two-child benefit cap ahead of budget

The Government has faced renewed calls from Labour MPs to scrap the two-child benefit cap ahead of the budget next month, as ministers said it was not the only way to cut child poverty.

Work and pensions minister Andrew Western said Labour was determined to bring down the number of children living in poverty, and indicated lifting the cap was among a number of options being considered.

He faced calls from Labour, Liberal Democrat and Scottish National Party (SNP) MPs to put pressure on Rachel Reeves to announce the restriction would be removed at the budget on November 26.

Richard Burgon (Leeds East), who had the Labour whip withdrawn from him last year when he voted in favour of an SNP amendment that would have scrapped the cap, said it would tackle the cost of living crisis facing parents.

Speaking at Work and Pensions questions on Monday, Mr Burgon said: “The cost of living crisis remains the main issue that people face, despite what the far right try to claim.

“One way to really help struggling families would be to lift the two-child benefit cap. That would lift hundreds of thousands of children out of poverty across the country, including many in my constituency.

“So isn’t scrapping the two-child benefit cap what should be announced in the forthcoming budget?”

Party colleague Steve Witherden (Montgomeryshire and Glyndwr) said one in three children in his constituency were growing up in poverty. He said the policy was “one of the biggest drivers of child poverty in Britain today”.

Replying to Mr Burgon, Mr Western said: “All available levers are under consideration as part of our child poverty taskforce, which is reporting later this year.

“We will do what it takes to bear down on child poverty. There are many levers that we can look at to do that, we have pulled some already, and we will continue that work.”

The policy has been a hot topic in the Labour Party since it entered Government.

Within weeks of winning the election, seven Labour MPs had the whip withdrawn for backing an SNP amendment that would abolish the cap.

The Child Poverty Action Group thinktank has said the cap means parents with three or more children lose out on £3,514 a year for each child.

It estimated that 350,000 children would be lifted out of poverty completely if it was dropped – and mean 700,000 are in “less deep” poverty.

Its figures were quoted by SNP MP Seamus Logan (Aberdeenshire North and Moray East) who said more than 100 children go into poverty every day in England – but said the figure was falling in Scotland where his party is in charge.

During the recent Labour deputy leadership election, its victor Lucy Powell said the policy should be scrapped.

At the party’s conference in September Ms Reeves indicated she was set to lift the limit.

Conservative frontbencher Rebecca Smith said the cap should stay in place, and lifting it would “increase worklessness”.

Ms Smith said the Tories were “surrounded” by parties who wanted to axe it.

Reform UK is among the parties who have called for the cap to be lifted as it said it wanted to encourage people to have more children.

Liberal Democrat work and pensions spokesperson Steve Darling said: “I note that last year the new Work and Pensions Secretary (Pat McFadden) said it’s open to debate as to whether the two-child limit is harmful.

“I note also that this policy is the most impactful of driving children into poverty, with more than 730,000 in poverty.

“Will the minister acknowledge that the two-child limit is harmful, and work with Treasury colleagues to turn this over?”

Mr Western replied: “All levers are under active consideration, but I would remind him, as I have reminded other colleagues of the steps that this Government has already taken, including the roll-out of free school meals to all families in receipt of Universal Credit, which alone will lift 100,000 children out of poverty.”