Reform to reinstate two-child benefit cap as Jenrick pledges ‘fiscal discipline’

Reform UK would reinstate the two-child benefit cap if it wins the next general election, Robert Jenrick has confirmed, in a U-turn on the party’s previous stance.

Mr Jenrick, Reform’s Treasury spokesperson, said the party’s existing policy was “well meaning” as a way of encouraging families to have more children, but said it was now unaffordable.

In his first speech since being announced in the role, Mr Jenrick said Reform would be a party of “workers, not welfare”. He highlighted a need for fiscal discipline which he said had been “sorely missing”.

The announcement was criticised by Prime Minister Sir Keir Starmer and the Labour Party chairwoman.

Speaking at an event in the City of London, Mr Jenrick said: “Reform is changing our policy on the two-child cap for universal credit. The policy was well-meaning.

“We want to help British working families to have more children. But, right now, we just cannot afford to do so with welfare. So, it has to go.”

In a post on X, Sir Keir said of Mr Jenrick’s pledge: “Shameful. I’m incredibly proud that this Government has scrapped the cruel two-child limit.

“Reform wants to push hundreds of thousands of children into poverty.”

Labour Party chairwoman Anna Turley also criticised the policy shift, saying: “Robert Jenrick has united the right behind a cruel child poverty pact that would see nearly half a million kids pushed into poverty.

“Farage’s party is stuffed full of former failed Tories who are now hell-bent on continuing their damaging legacy, with working people and their children set to pay the price.

“Labour chooses the other road – lifting almost half a million kids out of child poverty – and that’s what we’re doing this year.”

Mr Jenrick pledged to reform the Office for Budget Responsibility (OBR) rather than abolish it, and said the Bank of England would remain independent if he were in No 11.

The Reform spokesperson said taxes were too high and would be brought down if there was the fiscal “headroom” to do so. However, he sought to distance himself from Liz Truss’ mini-budget, which took place when he was a minister.

Mr Jenrick said Ms Truss’ mini budget was a “wild spending splurge alongside big tax cuts” as he emphasised the need for fiscal discipline that had been “sorely missing”.

He said: “We want a simpler, fairer tax system that incentivises work, saving and investment. That means fixing the absurd marginal tax rates that many people face in our country today, so we do intend to review the tax code in a programme not seen since the landmark reforms of Nigel Lawson.

“We also understand that we can’t make tax cuts while running a huge deficit in the vain hope that the Laffer curve (a concept by the economist Arthur Laffer suggesting there is an optimal tax rate that can maximise government revenue) alone will do the hard work for us. That is why Nigel (Farage) drew a line under the previous tax and spending commitments Reform had made.”

He added: “We will never make promises we can’t keep to the British people, so we’ll only cut taxes when we have generated the fiscal headroom necessary to make those tax cuts sustainable.”

The party would also cut red tape, and protect key national industries including steelmaking and car manufacturing.

Mr Jenrick warned China would undercut industries in Britain and cause jobs to be lost. “Free trade with our friends and allies is advantageous, but we must respond robustly when our rivals consistently cheat the system and leverage dependencies to our disadvantage,” he said.

“Reform do not believe in picking winners, but, yes, we do believe in an industrial strategy to protect our strategic industries like steel, defence and car-making.

“Because unless we change course now, we will trade a car made in Sunderland for a car made in Shenzhen; the Chinese building their middle class on the backs of ours. And Reform we will never allow that to happen.”

The party will also make changes to the Motability scheme and limiting welfare to only go to British nationals.

Nigel Farage named his top team on Tuesday, barely a month after Mr Jenrick left the Conservative front bench where he was shadow justice secretary.

Former home secretary Suella Braverman, who also left the Conservatives for Reform last month, was made her new party’s education, skills and equalities spokeswoman.