Sir Keir Starmer has given his strongest signal yet that he plans to scrap the two-child cap on benefits, going as far as he could to all but confirm the move would be in the Budget later this month
The Prime Minister told ITV’s Lorraine show “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”.
It comes after Chancellor Rachel Reeves on Monday hinted that she is preparing to lift the cap in the Budget, saying “I don’t think that it’s right that a child is penalised because they are in a bigger family through no fault of their own”.
A Treasury source said Reeves’ comments were a “clear signal of intent” ahead of the 26 November Budget, suggesting the Chancellor is preparing to lift the cap in full rather than partially, with a three-child cap or increasing benefits for working parents other options under consideration by ministers.
Starmer and Reeves dropped hints on scrapping the two-child cap as Labour MPs voice concern over their plans to break a manifesto pledge not to raise income tax, in a sign the Government hopes the move on welfare will help win over unsettled colleagues.
New Labour deputy leader Lucy Powell last week called for the lifting of the cap, while also coming out against manifesto-busting tax rises.
The Prime Minister said on Tuesday: “I can tell you in no uncertain terms I am determined to drive child poverty down.
“It is what the last Labour government did and it’s one of the things we are proudest of.
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“I am personally determined that is what we are going to do, you won’t have to wait much longer to see what the measures are.”
He added: “I can look you in the eye and tell you I am personally committed to driving down child poverty.”
Asked whether this meant he would lift the two-child cap, Starmer replied: “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”.
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