First Minister calls for ‘damaging’ two-child benefit cap to be scrapped

Sir Keir Starmer is facing further pressure to scrap the two-child benefit cap, after Wales’ First Minister argued it is “damaging” for families.

Tensions between the Prime Minister and the Welsh Labour leader have appeared to be brewing over recent weeks, with Baroness Eluned Morgan calling for winter fuel allowance to be restored for the “majority of pensioners” and for a change of plan on proposed welfare cuts.

The benefit cap, which was introduced by the Conservatives in 2017, restricts child tax credit and universal credit to the first two children in most households.

Pressed

The Government has long been pressed to axe the policy, with seven Labour MPs rebelling to vote against the King’s Speech, over its lack of a commitment to abolish the cap, within Sir Keir’s first month of office.

Education Secretary Bridget Phillipson suggested scrapping the policy is “not off the table” earlier this week, before Downing Street revealed ministers are “not going to rule anything out when it comes to tackling child poverty”.

The Government’s child poverty strategy, which was due to be published in the spring, is now set to come in the autumn so it can be aligned with the Chancellor’s budget.

Speaking to BBC Wales on Wednesday, Baroness Morgan said: “Today we’ve issued a statement to call on the UK Government to get rid of the two-child benefit cap.

“We think it is damaging for lots of families in Wales.”

‘Hypocrisy’

Plaid Cymru has branded the First Minister’s comments “staggering hypocrisy from Labour”, adding it is “panic, driven by polling, not values”.

The party’s spokesperson for social justice and early years Sioned Williams MS said: “Just last Christmas, Eluned Morgan derided Plaid Cymru for demanding the two-child cap be scrapped. As recently as last October, Labour MSs voted against our calls in the Senedd to stand up for children in poverty and end this cruel cap.

“Meanwhile in Westminster, not a single Welsh Labour MP backed our efforts to scrap it – and Keir Starmer suspended his own MPs for voting to protect children.”

Darren Millar, Leader of the Welsh Conservatives said: “Labour promised that having two governments working at either side of the M4 would deliver for Wales, but all we’ve seen is a party at war with itself and a First Minister who clearly holds no sway with the Prime Minister.

“The reality is that eliminating the two-child benefit cap would come at a financial cost, ultimately borne by hardworking taxpayers. While the state should always support the most vulnerable, any extra costs must be weighed against the principle of fairness for the taxpayer.”

‘Nothing’s off the table’

Ms Phillipson, who is leading the Government’s child poverty task force alongside the Work and Pensions Secretary, said the taskforce is “certainly looking at” the policy, when asked if she would scrap the cap.

“As I say, nothing’s off the table but this is not straightforward, the costs are high,” she added.

The Prime Minister’s official spokesman said on Tuesday that the Government is “absolutely committed to tackling child poverty”.

He later added: “We’ve been very clear that we’re not going to rule anything out when it comes to tackling child poverty, and the ministerial task force is considering all available levers to give every child the best start in life as part of our strategy.”

The spokesman said that he would not speculate on the measures that could be included in their plans.