Six Labour Members of Parliament who were previously suspended due to their opposition to the two-child benefit limit have urged Rachel Reeves to completely abolish the “harsh” policy. They believe that the Labour government cannot morally defend maintaining the policy and that eliminating it would demonstrate a genuine commitment to addressing the financial struggles faced by many families.
In a joint letter to the Chancellor ahead of the upcoming Budget, the MPs, including prominent figures like John McDonnell and Rebecca Long-Bailey, emphasized that the two-child benefit limit unfairly penalizes children for circumstances beyond their control. They argue that every day the policy remains in effect, over 100 children are pushed into poverty, highlighting the urgency of the situation.
The MPs assert that getting rid of the two-child limit would be the most impactful and cost-efficient action the Labour Government could take to alleviate child poverty. Therefore, they are calling on Rachel Reeves to announce the full abolition of the policy in the November Budget.
This push for change coincides with discussions by Keir Starmer and Rachel Reeves on potentially revising or scrapping the policy initially introduced by former Chancellor George Osborne almost ten years ago. 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.
The government is expected to release the findings of its child poverty review alongside the Budget, which may include recommendations regarding the two-child benefit limit. Concerns have been raised that partial measures, such as transitioning to a three-child limit or reducing benefits for additional children, would still result in higher levels of child poverty by the end of the decade.
Andy Burnham, the Mayor of Greater Manchester, has also voiced support for abolishing the policy and criticized the decision to remove the whip from MPs who opposed the government’s stance last year. Burnham expressed disappointment, stating that such punitive action was not reflective of the Labour government he was part of under Brown and Blair, where individuals were not penalized for taking principled stands.