Labour MPs Celebrate Two-Child Benefit Cap Axe Amid £3bn Cost Concerns
Labour MPs Celebrate Two-Child Benefit Cap Axe

Labour MPs have been celebrating their successful move to abolish the controversial two-child benefit cap, even as concerns mount over the escalating cost of Britain's welfare system. Sir Keir Starmer leveraged his commanding majority in the House of Commons to advance legislation that would eliminate the policy, bringing the government one step closer to its removal.

Parliamentary Vote and Financial Implications

In a decisive parliamentary vote, MPs supported the Universal Credit (Removal of Two Child Limit) Bill by a margin of 458 to 104, representing a substantial majority of 354. This second reading approval paves the way for further examination by both MPs and peers before the bill can be enacted into law. The government has indicated its intention to discard the two-child limit starting in April.

The policy, originally implemented by the previous Conservative administration, currently restricts parents from claiming Universal Credit or child tax credit for any third or subsequent child born after April 2017. According to projections from the Office for Budget Responsibility, eliminating this cap is expected to impose an annual cost of £3 billion on taxpayers by the 2029/30 financial year.

Impact on Child Poverty and Political Divisions

Research conducted by the Joseph Rowntree Foundation suggests that removing the limit could result in 400,000 fewer children living in poverty this April compared to the previous year. This potential reduction highlights the social dimensions of the policy change beyond its financial ramifications.

During Tuesday night's vote, both the Conservative Party and the majority of Reform UK MPs opposed the removal of the two-child benefit cap. However, in an unexpected twist, two Reform MPs were recorded as having voted with the government. Reports indicate that Suella Braverman and Robert Jenrick, both former Tory ministers who recently defected to Nigel Farage's party, mistakenly entered the aye lobby and found themselves locked in as the doors closed.

Political Rhetoric and Policy Defences

Work and Pensions Secretary Pat McFadden delivered a scathing critique of the two-child benefit cap, arguing that children had been treated as political pawns for nearly a decade. He told Parliament that the policy was never genuinely about welfare reform or fiscal savings, but rather represented a political manoeuvre designed to create divisions between different segments of society.

Conservative opposition was articulated by shadow work and pensions secretary Helen Whately, who questioned why benefit recipients should be exempt from the difficult decisions about family size that affect everyone else. Her colleague, former deputy prime minister Sir Oliver Dowden, defended the policy's underlying principle of personal responsibility, suggesting that millions of people make conscious choices about family size based on their financial circumstances.

Reform UK's Position and Future Implications

Nigel Farage had previously expressed support for abolishing the two-child cap, but later clarified that his party's backing would be conditional upon both parents being British citizens and employed full-time. Last month, he confirmed that Reform UK MPs would ultimately vote against removing the limit, creating some confusion about the party's stance.

If the legislation passes into law, families will become eligible to receive the child element of Universal Credit for all children, irrespective of family size. The Conservatives have pledged to reinstate the policy should they return to power, ensuring this issue will remain a point of political contention in future debates about welfare, taxation, and social responsibility.