Latest news with #welfarePolicy
Sky News
06-06-2025
- Business
- Sky News
'A policy Labour never liked - but may not be able to scrap'
Labour may announce tweaks to the two-child benefit cap so that it exempts certain families, Harriet Harman has suggested. It follows ministers, including the prime minister, repeatedly refusing to rule out whether the government will scrap the policy altogether. The cap means families are restricted so that they only receive benefits for their first two children in most households. It is meant to encourage families not to expand beyond their means and become reliant on welfare. But critics say the cap worsens child poverty by leaving the poorest families with a lack of support. Sir Keir Starmer avoided answering Kemi Badenoch's questions about whether he is in favour of removing or altering the cap at PMQs on Wednesday. Baroness Harman has suggested the issue is "not binary" and that the government might tweak it instead of scrapping it or leaving it as it is. "The question is whether Labour can afford to get rid of it. But actually, it's not binary - 'do Labour keep it or do they scrap it?'" 2:37 Instead, the former deputy Labour leader said ministers may be looking at "ways they could cut it down". She continued: "For example, they could remove the two-child benefit policy for families with disabled children. They could remove the two-child benefit policy for families who are working, or something like that. "So, it might be that what they're trying to work out is not scrapping it altogether." The Labour peer said "narrowing it down a bit" might be the policy the government go with, as this would allow them to seem more generous and dedicated to tackling child poverty, while minimising the extra strain on the Treasury. Speaking on the podcast, Sky News' political editor Beth Rigby said she understands that Sir Keir's chief of staff, Morgan McSweeney, is against changing the two-child benefit cap. This is because "it apparently does poll well, with voters, people, people around the country quite supportive of the policy", she said. What are the other parties saying on the cap? Kemi Badenoch has ruled out lifting the cap, saying it is "fair" and ensures that families receiving welfare make choices within their means. On the other side of the argument, Nigel Farage has called for the cap to be scrapped and has said Reform UK would like to see more people in the UK having larger families. The party leader said lifting the cap would be just one of several measures he would introduce to encourage Britons to have more children. But these suggestions have been roundly criticised by the leaders of both Labour and the Tories for being unfunded policy commitments. On Wednesday, Sir Keir refused to answer questions directly about the spending cap during a visit to a school in Essex. He was in the classroom to drive home the government's expansion of free school meals, which will mean 500,000 children are now eligible for them. He called this a "statement of intent" and said he is waiting on his child poverty taskforce, which will report back with recommendations for the government to follow.
Yahoo
26-05-2025
- Business
- Yahoo
Is Starmer Really Looking To Lift The Two-Child Benefit Cap? Here's What We Know
Keir Starmer might be on the cusp of lifting the two-child benefit cap, according to some reports. It comes after months of backlash towards the policy from both voters and Labour backbenchers. The prime minister has already U-turned on the government's controversial decision to axe winter fuel payments for 10 million pensioners last autumn, saying he wanted more people to be eligible for the lump sum last Wednesday. So here's what we know about might end up being Starmer's next 180... The policy, imposed by the Conservative government in 2017, restricts the amount of benefits a family can claim. It prevents most families from claiming means-testing benefits for any more than two of their children born after April 2017. As soon as Labour were elected last July, they confirmed they would be keeping the cap. Starmer even removed the whip from seven MPs who voted against the government and in favour of removing the policy. The cap has added to a growing headache for the government amid its wider crackdown on the welfare state. Two mothers even challenged the government in court over it in November. But Labour has kept it in place because of the country's economic woes – this policy alone is estimated to save the taxpayer around £3.5 billion per year – and the £22bn black hole the Tories supposedly left in the public finances. The Observer reported over the weekend that Starmer had privately backed abolishing the limit and requested the Treasury finds £3.5bn to do so. It comes after Reform UK leader Nigel Farage announced he would scrap the benefit cap and bring back the winter fuel payments as he looks to win over left-leaning voters. But deputy prime minister Angela Rayner refused to say if the cap would be scrapped when speaking to broadcasters on Sunday. She told Sky News: 'Lifting any measures that will alleviate poverty for some of the poorest families is not a bad idea.' But she told the BBC: 'I'm not going to speculate on what our government is going to do.' She pointed out that the government established the Child Poverty Taskforce, which is looking into whether to keep or abandon the cap. The taskforce was expected to publish Labour's child poverty strategy was in spring, but it has now been delayed to in autumn. The government has also suggested any such decisions would be made as part of a fiscal event – the next one being June 11′s spending review. Labour has fallen dramatically down the opinion polls in the last 10 months, while Reform UK storm ahead. YouGov found that the PM has fallen to his lowest net favorability rating last week, with just 23% of Britons having a positive view of Starmer. But polling guru Sir John Curtice told The Independent that lifting the cap – or reversing the changes to the winter fuel payments – would not be enough to fix Labour's fortunes in the polls. Pointing to Starmer's winter fuel U-turn, Curtice said: 'These things stick in the memory – so you can change the policy now and you can probably reduce the damage, but it's difficult to erase some people's memory.' Similarly, Tory peer and pollster Lord Hayward told the newspaper too many changes of heart could open the doors to future bids for reversals of policy while also undermining Starmer's authority. 'It is a display of insecurity which automatically gives rise to talk about the replacement of a leader,' he said. Liz Kendall Sparks Fresh Backlash As She Doubles Down On 'Cruel' Plan To Slash Disability Benefits 'This Is Austerity, Isn't It?': Justin Webb Roasts Minister Over Benefits Cuts Labour Slammed Over 'Simply Indefensible' £5 Billion Cuts To Disability Benefits
