Keir Starmer has defended his decision not to scrap the two-child benefit cap, warning Labour that more tough choices lie ahead if the party is to win the next election. Speaking at the Future of Britain conference, the Labour leader said the party had to be “really ruthless” in its decisions, including ruling out unfunded spending commitments, to ensure it is in a strong position to contest the election.
Starmer acknowledged that this would mean not being able to do everything shadow cabinet ministers might want, but stressed the need for discipline. “We keep saying collectively as a party that we have to make tough decisions. And in the abstract, everyone says: ‘That’s right Keir.’ But then we get into the tough decision … and they say: ‘We don’t like that, can we just not make that one?’” he said.
The policy, introduced by former Chancellor George Osborne, prevents families from claiming universal credit for a third or subsequent child. Scrapping it would lift about 270,000 households out of poverty at an estimated cost of £1.4bn in the first year. Despite pressure from senior figures like Andy Burnham and Stella Creasy, Starmer maintained that fiscal responsibility is essential for Labour to reach power.
Shadow cabinet minister Lucy Powell suggested that significant changes would have to wait until a second term, citing a lack of funds. Former Labour leader Jeremy Corbyn said backbenchers were “seething with anger” over the policy. Meanwhile, Tony Blair warned Starmer that the economic inheritance next year would be “grim”, to which Starmer responded by calling for “growth, growth, growth”.
