Although the demand within the party to remove the cap on benefits payments for families with more than two children remains high, following Starmer’s welfare U-turn, Downing Street sources have told The Sunday Times axing the cap is now “dead in the water”.
A No 11 source added: “MPs will need to acknowledge that there is a financial cost to not approving the welfare changes, whether that’s tax rises or not scrapping the two-child benefit cap. They need to understand the trade-offs.”
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Plans to axe two-child cap now ‘dead’ after welfare U-turn Sort: Newest first Oldest first July 6, 2025 8:22 amPlans to axe two-child cap now ‘dead’ after welfare U-turn
Plans to axe the two-child benefits cap are “dead” following Labour’s U-turn on welfare cuts last week, according to The Sunday Times, which cited Downing Street sources.
They said the chances of the government scrapping the two-child benefits limit, which would cost £3.4 billion a year, were now very slim.
A No 11 source added: “MPs will need to acknowledge that there is a financial cost to not approving the welfare changes, whether that’s tax rises or not scrapping the two-child benefit cap. They need to understand the trade-offs.”
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