Feb 21, 2025, 6:19 PM
Feb 21, 2025, 12:01 AM

Labour rebels demand increase of two-child benefit cap

Highlights
  • Labour MPs are advocating for the government to explore raising the two-child benefit cap, aiming to address issues of child poverty.
  • The proposal could create tensions among party members as left-wing Labour MPs resist the leadership's current stance on benefits.
  • The upcoming negotiations with the EU may influence the outcome of these domestic policies.
Story

In recent weeks, Labour MPs representing various factions have intensified their efforts to challenge the two-child benefit cap established under the Conservative government in the UK. The cap, which restricts universal credit or child tax credit to a family's first two children, has faced criticism for exacerbating child poverty. High-profile figures, including Bridget Phillipson, the education secretary, and Liz Kendall, the work and pensions secretary, are now involved in drafting a child poverty action plan, potentially advocating for an increase in the cap to three children. This movement coincides with ongoing discussions regarding the European Union's youth mobility scheme, where Keir Starmer's government has been approached about allowing greater mobility for young people between the UK and EU countries. While Starmer has previously dismissed the idea of returning to free movement as a betrayal of Brexit, leaked plans indicate that the UK might be considering a limited scheme to permit young EU workers and students to come to Britain for up to two years. The arrangement aims to cap numbers significantly at about 70,000 annually with restrictions on access to state benefits. As talks are expected to accelerate ahead of a UK-EU leaders' summit in May, both parties recognize the need to reset their post-Brexit relationship. The EU's approach notably contrasts with the UK’s potential plan, pushing for more relaxed conditions without fixed caps. This climate of negotiations fosters caution on both sides, and there is a collective hope for a constructive outcome. Ultimately, the outcomes of these proposals regarding child benefits and youth mobility will have significant implications for low-income families in the UK, as well as for the political landscape surrounding Brexit negotiations. Labour's ability to unify its factions in pursuit of these objectives will also serve as a critical test for Starmer's leadership and the party's influence over future welfare policies.

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