Rachel Reeves doubles down on refusal to scrap two-child benefit cap

Scrapping the policy would lift an estimated 300,000 children out of poverty

Rachel Reeves has doubled down on Labour’s opposition to scrapping the two-child benefit cap, highlighting the £3bn annual price tag of the measure.

The chancellor came under pressure over the limit, which prevents parents from claiming benefits for any third or subsequent child born after April 2017.Scrapping the policy would lift an estimated 300,000 children out of poverty, according to the Child Poverty Action Group.

Ms Reeves was asked about opposition to the George Osborne-era cap from Labour heavyweights including Gordon Brown and Andy Burnham, but said she could not make “unfunded spending commitments”.

Rachel Reeves has announced a review of the pensions sector (Jonathan Brady/PA) (PA Wire)

She told the BBC’s Sunday With Laura Kuenssberg: “It costs more than £3bn a year.

“And we were really clear during the election that we are not going to make spending commitments without being able to say where the money is going to come from.”

But the chancellor promised Labour in government will “absolutely” lift children out of poverty. “Look at some of the things we are committed to… free breakfast clubs at all primary schools… the creation of 3,000 additional nurseries with 100,000 places… the new deal for working people,” she added.

“These are all things that have a material impact on child poverty. Previous Labour governments have lifted kids out of poverty.

“It is in our DNA. We will do that. But I’m not willing to make unfunded commitments”

Labour is facing growing pressure over its refusal to commit to repealing the limit, with left-wing backbenchers prepared to rebel and back an amendment to the King’s Speech on the topic.

The SNP has tabled an amendment to the King’s Speech to scrap the two-child cap, which is backed by the Greens, the SDLP, Plaid Cymru, the Alliance party and independent MPs including Jeremy Corbyn.

Former prime minister Gordon Brown is a leading critic of the cap (PA Wire)

Meanwhile 35 MPs have signed a Commons motion by Labour’s Kim Johnson calling for the limit to be axed. They include fellow Labour MPs Zarah Sultana, John McDonnell, Rebecca Long-Bailey and Bell Ribeiro-Addy.

The motion claims that if scrapped, the move would immediately lift 300,000 children out of poverty and calls on the government to act.

It referenced recent figures showing around 1.6m children are missing out on thousands of pounds every year due to the policy.

The damning new figures from the Department for Work and Pensions (DWP) show that 1.3 million children are living in a universal credit household and 270,000 living in a child tax credit household.

Also speaking to the BBC on Sunday, Ms Sultana said: “If the Labour Party has a moral mission it has to be to eradicate poverty, especially child poverty.

“There are families experiencing unnecessary hardship.”