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Minister's Vow to Combat Child Poverty
London, UK – June 4, 2025 – The highly contentious "two-child benefit cap" has once again emerged as a focal point in the heated parliamentary debates, with Conservative Party leader Kemi Badenoch directly challenging Prime Minister Sir Keir Starmer on his government's stance on the policy. The sharp exchange at Prime Minister's Questions underscores the deep ideological divide and the immense pressure on the Labour government to address rising child poverty, a pledge Starmer has repeatedly emphasized since taking office.
The two-child benefit cap, introduced by the Conservative government in 2017, restricts Universal Credit and Child Tax Credit payments to a family's first two children, with very limited exceptions. Proponents of the cap argue it promotes fiscal responsibility and fairness, ensuring that families on benefits make similar financial choices about family size as those in work. However, a wide array of anti-poverty campaigners, charities, and opposition parties have consistently condemned the policy, asserting that it is a significant driver of child poverty in the UK. Data from organizations like the Child Poverty Action Group (CPAG) indicate that the cap affects over 1.6 million children and has directly pushed thousands into poverty, making families with three or more children disproportionately vulnerable to hardship.
During the recent Prime Minister's Questions, Kemi Badenoch seized the opportunity to press Sir Keir Starmer on the cap, highlighting what she described as "chaos and uncertainty" within the Labour government's welfare policy. Badenoch specifically asked Starmer if he would commit to keeping the two-child benefit cap, drawing a stark contrast between Conservative and Labour approaches. "On this side of the House, we believe that people on benefits should have to make the same choices on having children as everyone else," Badenoch declared, pointedly asking, "What does the Prime Minister believe?"
Sir Keir Starmer, in response, appeared to sidestep a direct commitment on the cap's future, instead reiterating his government's overarching ambition to "profoundly" drive down child poverty. While he did not explicitly state whether the cap would be abolished or retained, his remarks have been interpreted by some as a softening of the Labour Party's previously firm stance. For months after taking power, the Labour government had maintained that budgetary constraints prevented them from scrapping the cap. Indeed, the issue has caused internal divisions within the Labour Party, with some backbench MPs having previously rebelled against the party line to vote for its abolition.
Recent reports suggest a shift in the Labour government's internal discussions regarding the cap. It is understood that Prime Minister Starmer has privately tasked the Treasury with exploring options for how the cap could be funded, indicating a potential U-turn on the policy. This reconsideration comes amid mounting pressure from various fronts, including persistent lobbying from anti-poverty groups, the aforementioned internal party dissent, and a public commitment from Reform UK leader Nigel Farage to abolish the cap if his party were in power. The delay in the publication of Labour's child poverty strategy, initially expected in spring and now anticipated in autumn, further fuels speculation that the government is weighing its options on this politically sensitive issue.
Campaigners argue that the economic benefits of scrapping the cap far outweigh the costs. The New Economics Foundation (NEF) has estimated that lifting the two-child limit would reduce the economic cost of child poverty by £3.2 billion a year by the end of the current parliament, primarily through reduced demand for public services and increased economic growth. CPAG estimates that abolishing the cap could immediately lift 350,000 children out of poverty and alleviate hardship for another 700,000. These figures present a compelling case for those advocating for the cap's removal, framing it not just as a moral imperative but also as a sound economic investment.
The Conservative Party, however, remains steadfast in its defence of the cap. Kemi Badenoch, in her parliamentary interventions and media appearances, has accused Starmer and Farage of making "promises they can't deliver" and asking taxpayers to "fund unlimited child support for others." This argument reinforces the Conservative principle of "sound money and fiscal responsibility," asserting that the cap is a necessary measure to control welfare spending.
As the Labour government navigates its first term, the two-child benefit cap represents a significant test of its commitment to its core pledges, particularly the reduction of child poverty. While the Prime Minister has expressed his profound dedication to this goal, the specific mechanisms to achieve it, especially concerning the controversial cap, remain subject to intense political and economic debate. The coming months, with the anticipated release of Labour's child poverty strategy, will undoubtedly provide clearer insights into the government's definitive stance on a policy that profoundly impacts the lives of millions of children across the UK.
Source@BBC