Six Labour Members of Parliament (MPs) who were previously suspended for opposing the two-child benefit limit have urged Rachel Reeves to completely eliminate the “harsh” policy. In a joint letter addressed to the Chancellor ahead of the upcoming Budget, they emphasized that the Labour government cannot reasonably defend the policy and that its removal would demonstrate a genuine commitment to addressing the financial challenges faced by millions of families.
The MPs, including John McDonnell, Rebecca Long-Bailey, Ian Byrne, Apsana Begum, Richard Burgon, and Imran Hussain, all of whom had their party membership reinstated after rebelling against the government on this issue last year, have voiced strong objections to the two-child benefit limit. They argued that the policy unfairly penalizes children based on circumstances beyond their control, asserting that no Labour government should uphold such a measure. They highlighted that over 100 children fall into poverty daily due to this restriction and emphasized that abolishing the limit would be a significant and cost-effective step towards reducing child poverty.
The pressure on Keir Starmer and Rachel Reeves to reconsider or soften the policy initially introduced by former Chancellor George Osborne nearly a decade ago is mounting. The policy restricts Child Tax Credits and Universal Credit to the first two children in a family and has been criticized by charities for perpetuating child poverty.
As the government prepares to release its child poverty review alongside the Budget, which is expected to include recommendations regarding the two-child benefit limit, concerns have been raised by the Resolution Foundation think-tank. They cautioned that partial measures, such as transitioning to a three-child limit or reducing child benefits for third and subsequent children, would still lead to increased child poverty rates by the end of the decade.
Andy Burnham, the Mayor of Greater Manchester, has also joined the calls for scrapping the policy and criticized the decision to withdraw party support from the MPs who opposed the government last year. Burnham highlighted that such punitive actions were not reflective of the Labour government he was part of under Brown and Blair, where individuals were not penalized for taking principled stances.