Six Labour MPs previously suspended for opposing the two-child benefit limit have urged Rachel Reeves to completely abolish the “inhumane” policy. In a joint letter to the Chancellor ahead of the upcoming Budget, they emphasized that the Labour government cannot morally defend the policy. They argued that eliminating it would demonstrate a genuine commitment to addressing the pressing cost-of-living crisis affecting millions of struggling families.
The group of MPs, including John McDonnell, Rebecca Long-Bailey, Ian Byrne, Apsana Begum, Richard Burgon, and Imran Hussain, who were reinstated after defying the government on this issue, criticized the two-child benefit limit for penalizing children based on circumstances beyond their control. They highlighted that each day the cap remains in effect, over 100 children are pushed into poverty, underscoring the urgent need for its abolition.
The MPs stressed that scrapping the two-child limit would be the most significant and cost-effective action the Labour Government could take to lift children out of poverty. They called on Reeves to announce the full abolition of the policy in the November Budget. The pressure mounts on Keir Starmer and Reeves as they consider revising or completely removing the controversial policy introduced by former Chancellor George Osborne nearly a decade ago, which restricts Child Tax Credits and Universal Credit to the first two children in a family.
The government is expected to release the findings of its child poverty review alongside the Budget, likely containing recommendations regarding the two-child benefit limit. Despite calls for a compromise such as a three-child limit, experts warn that partial measures would not sufficiently alleviate child poverty by the end of the decade. Andy Burnham, the Mayor of Greater Manchester, also voiced support for scrapping the policy and criticized the decision to sanction MPs who stood against the government, highlighting the importance of allowing principled dissent within the party.