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‘A policy Labour never liked – but may not be able to scrap’ | Politics News

Spluk.ph by Spluk.ph
June 6, 2025
in Business & Economy
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‘A policy Labour never liked – but may not be able to scrap’ | Politics News
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Labour might announce tweaks to the two-child profit cap in order that it exempts sure households, Harriet Harman has prompt.

It follows ministers, together with the prime minister, repeatedly refusing to rule out whether or not the federal government will scrap the coverage altogether.

The cap means households are restricted in order that they solely obtain advantages for his or her first two youngsters in most households. It’s meant to encourage households to not increase past their means and change into reliant on welfare. However critics say the cap worsens youngster poverty by leaving the poorest households with a scarcity of assist.

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

Sir Keir Starmer prevented answering Kemi Badenoch’s questions on whether or not he’s in favour of eradicating or altering the cap at PMQs on Wednesday.

Baroness Harman has prompt the difficulty is “not binary” and that the federal government may tweak it as a substitute of scrapping it or leaving it as it’s.

Talking on the Electoral Dysfunction podcast, Baroness Harman stated: “Labour’s by no means favored this coverage. It was a Tory Celebration coverage.

“The query is whether or not Labour can afford to eliminate it. However really, it isn’t binary – ‘do Labour hold it or do they scrap it?'”

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Why has Labour delayed the cut to the two-child cap?

2:37

Why did Labour delay their youngster poverty technique?

As an alternative, the previous deputy Labour chief stated ministers could also be “methods they may lower it down”.

She continued: “For instance, they may take away the two-child profit coverage for households with disabled youngsters. They may take away the two-child profit coverage for households who’re working, or one thing like that.

“So, it is perhaps that what they’re attempting to work out just isn’t scrapping it altogether.”

The Labour peer stated “narrowing it down a bit” is perhaps the coverage the federal government go together with, as this might enable them to look extra beneficiant and devoted to tackling youngster poverty, whereas minimising the additional pressure on the Treasury.

Picture:
Baroness Harman has prompt the difficulty of the two-child advantages cap is ‘not binary’

Talking on the podcast, Sky News’ political editor Beth Rigby stated she understands that Sir Keir’s chief of employees, Morgan McSweeney, is in opposition to altering the two-child profit cap.

It’s because “it apparently does ballot properly, with voters, individuals, individuals across the nation fairly supportive of the coverage”, she stated.

What are the opposite events saying on the cap?

Kemi Badenoch has dominated out lifting the cap, saying it’s “honest” and ensures that households receiving welfare make decisions inside their means.

On the opposite facet of the argument, Nigel Farage has referred to as for the cap to be scrapped and has stated Reform UK want to see extra individuals within the UK having bigger households.

Reform UK leader Nigel Farage during a visit to The Big Club in Newton Aycliffe, County Durham.
Picture:
Reform UK chief Nigel Farage has raised the difficulty up the political agenda – to Labour’s discomfort

The get together chief stated lifting the cap can be simply one among a number of measures he would introduce to encourage Britons to have extra youngsters. However these solutions have been roundly criticised by the leaders of each Labour and the Tories for being unfunded coverage commitments.

Learn extra from Sky Information:
Badenoch to launch review into ECHR exit
‘Farage could become PM – this is how Labour can stop him’

On Wednesday, Sir Keir refused to reply questions straight in regards to the spending cap throughout a go to to a faculty in Essex. He was within the classroom to drive residence the federal government’s growth of free college meals, which is able to imply 500,000 youngsters are actually eligible for them.

He referred to as this a “assertion of intent” and stated he’s ready on his youngster poverty taskforce, which is able to report again with suggestions for the federal government to observe.

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

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