In a significant shift of policy, the Chancellor Rachel Reeves is poised to scrap the two-child limit on benefits in the upcoming Budget, a decision that could financially benefit thousands of Britain's largest out-of-work families.
Political Backdrop and Leadership Challenge
The move comes as Sir Keir Starmer has all but confirmed the cap's removal earlier this week. This decision is seen as a strategic effort to consolidate his leadership and address challenges from both the left and right wings of his party.
Initially, the Treasury had drafted plans to gradually 'taper' the payments, aiming to avoid substantial payouts to the largest families currently impacted by the restriction. However, following a significant backlash from within the Labour party, ministers have reportedly opted for a full abolition of the cap.
Financial and Social Impact
The complete removal of the policy is estimated to cost the taxpayer £3.5 billion a year. Advocates for scrapping the cap argue that it has significantly worsened child poverty in the UK and that its abolition will lift countless families above the bread line.
This change will have a tangible impact on households like that of Lisa and David White from Monmouth, South Wales. The couple, who have five children and have not worked for three years, stand to gain substantially. They could see their income increase by up to £10,000 extra each year.
Public Opinion and Polling
Amidst these policy developments, a recent poll conducted for the Mail asked readers whether Wes Streeting would make a better prime minister than Sir Keir Starmer. The results were telling: out of more than 14,000 votes cast, 68 percent responded 'Yes', while 32 percent said 'No'.
