Six Labour Members of Parliament who were previously suspended due to their opposition to the two-child benefit limit have collectively urged Rachel Reeves to completely eliminate the “cruel” policy. In a letter addressed to the Chancellor in anticipation of the upcoming Budget, they highlighted that the Labour government cannot morally defend the continuation of this policy. They emphasized that abolishing the policy would demonstrate a genuine commitment to addressing the pressing issue of rising living costs, which is causing significant financial strain for numerous families.
The MPs, including John McDonnell, Rebecca Long-Bailey, Ian Byrne, Apsana Begum, Richard Burgon, and Imran Hussain, who wrote to Ms. Reeves, had their party privileges reinstated after challenging the government’s stance on this matter last summer, shortly following Labour’s electoral success.
They criticized the two-child benefit limit as a measure that unfairly penalizes children for circumstances beyond their control, asserting that no Labour administration should uphold such a policy. They pointed out that each day the cap remains in effect, over 100 children are plunged into poverty. They contended that scrapping the two-child limit would be the most impactful and cost-efficient action the Labour Government could take to lift children out of poverty, urging for its full abolition to be announced in the November Budget.
The call for action coincides with discussions within the Labour Party, led by Keir Starmer and Ms. Reeves, exploring options to either eliminate or soften the policy initially introduced by former Chancellor George Osborne almost ten years ago. The policy restricts Child Tax Credits and Universal Credit to the first two children in a family and has been criticized by charitable organizations for contributing to the entrapment of children in poverty.
The government is anticipated to release findings from its child poverty review alongside the Budget, which is expected to include recommendations concerning the two-child benefit limit. Recent warnings from the Resolution Foundation think-tank caution against partial measures, such as transitioning to a three-child limit or reducing benefits for additional children, as these adjustments could still result in elevated levels of child poverty by the end of the decade.
Additionally, Andy Burnham, the Mayor of Greater Manchester, who advocates for the policy’s removal, denounced the decision to withdraw party support from MPs who opposed the government’s stance last year. He remarked that such actions deviate from the principles observed during his tenure under the Labour governments of Brown and Blair, where individuals were not penalized for taking principled stances.