Prime Minister Sir Keir Starmer has delivered his strongest indication yet that the controversial two-child benefit cap will be abolished in the upcoming budget.
The confirmation came after Chancellor Rachel Reeves similarly signalled the policy's removal, marking a significant shift in the government's approach to welfare and child poverty.
Government Signals Major Policy Shift
When directly questioned about scrapping the cap during an interview with ITV, Sir Keir responded: "We won't have to wait much longer" for an announcement. He added compellingly, "I wouldn't be telling you that we're going to drive down child poverty if I wasn't clear that we will be taking a number of measures in order to do so."
This follows Monday's statements from Chancellor Reeves, who told the BBC she doesn't believe it's right that "a child is penalised because they are in a bigger family, through no fault of their own." She committed that "we will take action on child poverty," directly addressing the two-child benefit cap that currently restricts child benefit claims to the first two children in a family.
Brown's Influence and Political Context
The policy change has received strong backing from former Labour Prime Minister Gordon Brown, who told Sky News he is "confident" the cap will be addressed in the budget. Mr Brown, who has long campaigned against the measure, revealed he had spoken with Ms Reeves both Sunday and Monday.
"I am confident that the two-child rule will be addressed," Brown stated. "We're waiting for Rachel Reeves's budget, which I think will mention this. Keir Starmer, I know is personally concerned and interested in this. So I'm hopeful that in the next few weeks we'll see the kind of action that we've been talking about."
The Chancellor acknowledged Brown's influence, describing him as one of her political heroes and citing his work on child poverty as the reason she entered politics.
Financial and Political Challenges
The decision to lift the two-child benefit cap comes with significant financial implications, with the move expected to cost £2.8 billion. Ministers have been grappling with this substantial expense while attempting to address a growing economic black hole.
The current Labour government has experienced internal tensions over the policy, with the Prime Minister suspending seven of his MPs just two weeks after winning the election for voting against the government to lift the cap.
This budget announcement represents a notable policy reversal and demonstrates the government's renewed commitment to tackling child poverty, affecting thousands of families across the UK who will now be able to claim benefits for all children in their household.
