Labour is under increasing pressure to scrap the controversial two-child benefit cap as campaigners argue the policy pushes families deeper into poverty. Despite calls for change, party leader Sir Keir Starmer has so far resisted demands to reverse the Conservative-era welfare restriction.
What is the Two-Child Benefit Cap?
Introduced in 2017, the policy limits child tax credits and Universal Credit to the first two children in most households. Critics say it disproportionately affects low-income families, with an estimated 250,000 households losing an average of £3,235 per year.
Growing Opposition
Several Labour MPs and anti-poverty organisations have urged the party to commit to abolishing the cap. Recent analysis suggests lifting the restriction could pull 250,000 children out of poverty immediately.
"This cruel policy forces parents to make impossible choices about feeding their children or paying bills," said one campaigner. "Labour has an opportunity to show real commitment to tackling child poverty."
Labour's Position
While acknowledging concerns, Shadow Chancellor Rachel Reeves has emphasised fiscal responsibility, stating any changes must be "fully costed." The party maintains its focus remains on broader economic reforms to address poverty.
With the general election approaching, the debate highlights tensions between Labour's progressive values and its cautious economic approach. Many await the party's manifesto to see if their position evolves.
