Six Labour Members of Parliament who were previously suspended for opposing the two-child benefit limit have urged Rachel Reeves to completely abolish the “cruel” policy. In a letter to the Chancellor before the upcoming Budget, they emphasized that the Labour government cannot justify maintaining the policy, stating that eliminating it would demonstrate a serious commitment to addressing the cost-of-living crisis affecting numerous families.
The MPs, including John McDonnell, Rebecca Long-Bailey, Ian Byrne, Apsana Begum, Richard Burgon, and Imran Hussain, who had their party privileges reinstated after challenging the government on this issue, condemned the two-child benefit limit as a policy that unfairly penalizes children for circumstances beyond their control. They stressed the detrimental impact of the cap on child poverty, urging for its immediate abolition as the most impactful and cost-efficient measure the Labour Government could implement.
Pressure mounts on Keir Starmer and Rachel Reeves to reconsider or weaken the policy imposed by former Chancellor George Osborne nearly ten years ago, which restricts Child Tax Credits and Universal Credit to the first two children in a family. Charities have criticized this policy for perpetuating child poverty.
The government is expected to release findings from its child poverty review alongside the Budget, potentially including recommendations regarding the two-child benefit limit. The Resolution Foundation think-tank cautioned against partial solutions, such as moving to a three-child limit, as they may not effectively reduce child poverty rates by the end of the decade.
Andy Burnham, the Mayor of Greater Manchester, also advocates for the policy’s elimination and criticized the decision to remove party privileges from MPs who opposed the government last year. He highlighted that such punitive actions were uncommon during previous Labour administrations.
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