Amid widespread opposition from Labour MPs, Chancellor Keir Starmer has indicated for the first time that he would consider removing the cap on second child benefit.
The Prime Minister backed comments from Education Minister Bridget Phillipson, who said removing the cap was one of the measures the Government would consider as part of its child poverty review.
It comes after the Liberal Democrats made new amendments to the King’s Speech calling for the removal of the two-child limit on child benefit, which are expected to be voted on on Tuesday.
Mr Phillipson told Sky News the Government: [lifting the cap] “As one of many ways to lift children out of poverty.”
Mr Starmer supported Mr Phillipson at a press conference at the Farnborough Airshow, saying: “I agree with what the Education Secretary said this morning. We will ensure that this strategy covers all aspects of reducing child poverty. No child should grow up in poverty.”
Some Labour, Scottish National, Liberal Democrat and Conservative MPs are expected to criticise the government over the issue during debate on the King’s Speech over the next two days, which could lead to a vote if the Speaker opts for the amendment on Tuesday.
During Monday’s debate, Suella Braverman MP urged her party to support removing the cap. “I’ve worked with vulnerable people and parents and it’s clear to me that the cap isn’t working,” the former Home Secretary said. “It’s hitting children under four hardest, mainly affecting younger children and those from larger families. I believe the cap is making child poverty worse. It’s time to scrap it.”
Starmer’s comments mark a change in the government’s stance amid an expected backlash from Labour MPs who want the cap to be lifted immediately.
Work and Pensions Secretary Liz Kendall held a closed-door briefing for MPs on Monday where she was reported to have highlighted that the Child Poverty Taskforce, announced last week, was considering scrapping the measure. MPs also expressed anger at a weekend briefing for Mr Bloomberg, in which the row over the cap was described as a “test of manhood” for the government.
Asked on Monday whether there were divisions within the party, Mr Starmer said he was “not surprised that there is real enthusiasm on this issue within the Labour Party. “He said there was “no silver bullet” and that child poverty was caused by a “complex mix of factors” and a wider strategy was needed.
Mr Phillipson told the station that removing the cap would be one of the measures the Child Poverty Task Force would consider in the coming months, but warned it would be one of the most expensive measures under consideration.
Starmer will face his first test of his authority in the coming days following Labour’s decision not to immediately lift the cap.
The Liberal Democrats’ amendments focus on health and social welfare reform, but also include “removing the two-child benefit cap.” The party’s new MPs give it a better chance of being elected, but party insiders have indicated they would support other amendments on the same issue.
Chancellor of the Exchequer Rachel Reeves told the BBC on Sunday she could not promise to remove the cap without telling us where the £3 billion-a-year cost would come from. “I can’t promise to remove it if I can’t tell you where the money is going to come from – and the same goes for the two-child limit and anything else,” she said.
After newsletter promotion
Rosie Duffield, Labour MP for Canterbury, wrote: The Sunday Times She claimed the hat, introduced in 2017 by then Chancellor of the Exchequer George Osborne, was “sinister and clearly sexist” and was her main motivation for running for Parliament.
With some exceptions, the cap means parents will not be able to claim Universal Credit or Child Tax Credit for their third child – a policy that will affect 1.6 million children, according to the latest data from the Department for Work and Pensions.
Many of the charities and organisations consulted by Work and Pensions Secretary Liz Kendall on a taskforce last week have called for the cap to be lifted.
Starmer told a press conference that the government was willing to agree an above-inflation pay rise for teachers and other civil servants. The independent pay review body for teachers and NHS staff has reportedly recommended an increase of around 5.5% – above the current 2% rate of inflation.
Asked whether he agreed with the Chancellor that failing to reach an agreement on pay for civil servants would be costly, Starmer replied: “I agree. I think it’s an important consideration.”
He added: “There is a cost measured in pounds and pence lost to the economy from industrial action, and there is also a cost in other work that we need to do in relation to the public services that we have to provide, and that must be taken into account when making any final decisions on pay.”
