Sarwar urges Reeves to scrap two-child cap in Budget

The leader of Scottish Labour has urged Chancellor Rachel Reeves to scrap the two-child benefit cap when she announces her Budget this month.

Anas Sarwar told the PA news agency on Friday he wanted to ensure the Budget would not see a “return to austerity”, reduced energy bills and tackled child poverty – which he said could be done by ending the cap.

The controversial provision has stopped parents being able to claim certain benefits for more than two children.

Opposition politicians – including the SNP-run Scottish Government – have long derided the cap, with mitigation measures set to come into force north of the border early next year.

Speaking during a visit in Glasgow, the Scottish Labour leader said: “I think three things have to come from that Budget.

“It has to be a budget that confronts child poverty, and that’s why I want to see the end of the two-child benefit cap.

“It has to improve living standards, that’s why we’ve got to have a package to lower energy bills.

“And third, we can’t return to austerity like we had under the Conservatives.

“That has to be the fundamentally different approach this Labour Government takes.”

Mr Sarwar went on to say he had raised the issue with the Chancellor and Prime Minister Sir Keir Starmer.

“We elected a Labour Government for a purpose and a reason and there have already been huge strides made,” he added.

Mr Sarwar’s comments come as reports suggest the Chancellor will not increase income tax when she speaks in the House of Commons later this month as had been expected.

As a result, there will have to be “fiscal decisions” taken by Ms Reeves to scrap the benefit cap, the Glasgow MSP said.

“I’ve always said… I don’t support income tax rises, I’ve been clear on that for a number of years,” he said.

The Budget will be important for “Labour choices”, the party leader said when asked how it would impact on his chances at next year’s Holyrood election.

But Mr Sarwar added that his party “can’t miss the opportunity to get rid” of the SNP.

A UK Government spokesperson said: “Every child, no matter their background, deserves the best start in life.

“That’s why our Child Poverty Taskforce will publish an ambitious strategy to tackle the structural and root causes of child poverty.

“In England, we are investing £500 million in children’s development through the rollout of Best Start Family Hubs and extending free school meals, while we have secured for Scotland the largest real terms settlement in the history of devolution – delivering a record annual figure of £50.9 billion – for spending on policies that are key levers to tackling child poverty.”