Pressure is mounting on Starmer to abolish the two-child benefit cap

Sir Keir Starmer, the leader of the Labor Party, is under increasing pressure to remove the two-child benefit cap. It comes after the Scottish National Party (SNP) revealed plans to call for a vote on the matter in the upcoming King's Speech. SNP Westminster leader Stephen Flynn argues the policy, implemented by the Tories in 2017, is driving thousands of children into poverty. The limit restricts parents from claiming universal credit or child tax credits for a third child, except in exceptional cases. This restriction prevents families from claiming approximately £3,200 per year per additional child, according to the Resolution Foundation.

Flynn has called on Labor MPs in Scotland to back his proposed amendment, saying the policy became the Labor Party's two-child limit when Sir Keir took office. Flynn insists it was a political decision not to abolish it by the new prime minister. Flynn has urged Starmer to include lifting the cap in his government program this week. If Starmer does not, Flynn promises the SNP will propose an amendment to abolish it immediately.

Although Starmer has previously expressed that the cap should be abolished, he reversed his position last year, citing the condition of public finances. Despite this, many Labor MPs are also against the two-child limit and have signaled a possible rebellion against the government on the issue. This could mean the first internal conflict of the Starmer government.

The Liberal Democrats, the Green Party and reform leader Nigel Farage have also expressed opposition to the cap. However, any rebellion would likely require the support of the Tories to overcome the government, which currently has a working majority of 181.

The Labor Party will present its first government program in the King's Speech on Wednesday, which is expected to include more than 30 bills dealing with housing, green energy and crime. The Resolution Foundation estimates that removing the two-child benefit cap would cost between £2.5bn and £3.6bn in 2024/25, figures which it considers “small compared to the harm the policy causes”.