Reports from the Department for Work and Pensions or relevant child poverty organizations

Scottish Labour Leader Urges Starmer to Scrap Two-Child Benefit Cap Affecting 1.6 Million Children

Jul 11, 2024, 09:40 AM

Scottish Labour leader Anas Sarwar has called on Sir Keir Starmer to scrap the two-child cap on benefits, a policy that affects approximately 1.6 million children and is widely criticized for exacerbating child poverty. The cap, which limits benefits to the first two children in a family, has been described as 'cruel' by campaigners and has led to increased pressure on the new Labour government. Former Shadow Chancellor John McDonnell has warned that Starmer will have to 'concede' on this issue, and has threatened to put down an amendment to the King's Speech if the government does not act. The Department for Work and Pensions released figures showing the significant impact of the cap, with 1.5 million children currently living in affected households. Labour MPs and child poverty campaigners argue that abolishing the cap could lift hundreds of thousands of children out of poverty, though it is estimated to cost between £2.5-3.6 billion. The policy has become a focal point for criticism from various quarters, including Labour MPs and advocacy groups, who demand immediate action to address child poverty. The number of families affected by the cap rose by 7%, and scrapping it could lift 490,000 children out of poverty, including many in the North East.