Plans to axe two-child cap ‘dead in the water’ after welfare U-turn ...Middle East

Plans to shelve the two-child benefit cap are “dead” after Sir Keir Starmer’s U-turn on the welfare bill, it has been reported.

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”.

Removing the cap would’ve cost £3.4bn, but with the welfare U-turn adding £5bn to the Government’s plans, there are now fears Rachel Reeves could be forced to increase taxes in the autumn.

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

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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.

Senior figures said the likelihood of tax rises had increased last week, when Labour retreated on plans to raise £5bn by cutting benefits.

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.

“My assessment is that is now dead in the water,” a No 10 source said.

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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