Sir Keir Starmer has said his government “will look at” scrapping the two-child benefits limit.
In his strongest hint yet that he will perform a U-turn – when asked if he would scrap the two-child benefit cap, Sir Keir said: “We’ll look at all options of driving down child poverty.”
The cap means families can only claim child tax credit and universal credit for their first two children, if they were born after April 2017.
It was introduced in 2017 by the Conservative government, and in 2023, Sir Keir ruled out scrapping it.
However, as Labour came to power last year, he said the party wanted to remove the cap but only when fiscal conditions allowed.
But he then doubled down on refusing to lift it, suspending seven Labour MPs shortly after the election victory for voting with the SNP to remove the cap.
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Ministers had toed the party line for months, but the narrative started to shift in May, with Education Secretary Bridget Phillipson telling Sky News on Tuesday lifting the cap is “not off the table” – and “it’s certainly something that we’re considering”.
Sir Keir was also reported to have asked the Treasury to see how scrapping it could be funded.
His words on Thursday are his strongest indication yet, that he could lift the cap soon.
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What is the two-child benefit cap and will Labour scrap it?
Starmer confirms U-turn of unpopular winter fuel policy
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It would mean a second benefits U-turn after he made a shock announcement last week that he was going to relax the winter fuel payment cut.
The policy, announced soon after Labour won the election, has caused anger among Sir Keir’s own MPs as it restricted the previously universal payment to those who receive pension credit.
It will now be available to “more pensioners”, but details of who and when have not been revealed.
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