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Wednesday, April 23, 2025

Will Labour fail to act on key child poverty issue?

The Guardian reports that Labour Ministers are privately ruling out scrapping the two-child benefit cap despite warnings from charities that a failure to do so could result in the highest levels of child poverty since records began.

The paper quotes Government sources who say that charities and Labour MPs who were concerned that wider benefit cuts would push more families into poverty should “read the tea leaves” over Labour’s plans:

“If they still think we’re going to scrap the cap then they’re listening to the wrong people. We’re simply not going to find a way to do that. The cap is popular with key voters, who see it as a matter of fairness,” one source said.

In a letter to Keir Starmer on Tuesday, groups including Barnardo’s, Save the Children UK and Citizens Advice said scrapping the two-child benefit limit would be the most cost-effective way to reduce child poverty.

The Child Poverty Action Group, which signed the letter, estimated the number of children in poverty would increase from 4.5 million to 4.8 million by 2029 unless urgent action is taken.

The government is planning to publish its long-awaited child poverty strategy in June, around the time of the spending review, raising expectations the plan will come with funding attached to try to drive down poverty levels.

As one MP says: “Ditching the cap is by far the most effective way of tackling child poverty. We have a moral obligation to do this. I’m afraid they’ll use the breakfast clubs to soften us up to tell us the two-child benefit cap remains.”

If Labour fail to revoke this cap it will amount to a betrayal of their core values. So far Labour MPs have been persuaded to give the government some leeway because of the promise of the new strategy in June. They may not be so understanding if ministers let them down.

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