Strength in Numbers: Labour and SNP Join Forces to Scrap Two-Child Benefit Cap

The SNP plans to join Labour rebels in a bold move to attempt to scrap the controversial two-child benefit cap, sparking a significant political debate over what the new government should prioritise: eliminating child poverty or demonstrating fiscal responsibility. Here’s the full story.

Test of Labour Unity

In a renewed bid to challenge the controversial two-child benefit cap, in a move that will see the first real test of party unity since Keir Starmer’s Labour Party won a landslide election, the Scottish National Party (SNP) has announced plans to join forces with Labour rebels.

SNP Amendment Proposal

The SNP’s proposed amendment to the upcoming King’s Speech seeks to scrap the two-child cap, a policy introduced by Conservative Chancellor George Osborne in 2017 that drastically limits the financial support for families with more than two children.

Policy’s Financial Impact

The policy restricts parents from claiming Universal Credit or child tax credits for more than two children, with few exceptions. The cap has been criticised for its devastating impact on child poverty, as it denies affected families approximately £3,200 per year per additional child.

Lifting Cap Costs

According to the Resolution Foundation, lifting the cap would cost between £2.5 billion and £3.6 billion annually, which many within Labour consider relatively low compared to the policy’s immeasurable harm.

Flynn’s Urgent Call

Stephen Flynn, the SNP’s Westminster leader, has been vocal about the urgent need to abolish the two-child cap. Flynn has written a letter to Scottish Labour leader Anas Sarwar, urging Labour MPs in Scotland to support the SNP’s amendment.

Flynn’s Direct Appeal

Flynn wrote, “The two-child cap is pushing thousands of Scottish children into poverty and scrapping it is the bare minimum the Labour Party government must do if it is serious about tackling poverty.”

Starmer’s Reversal

While Labour leader Sir Keir Starmer previously supported scrapping the cap, he has since reversed his position, citing the country’s dire economic state following 14 years of Conservative rule. However, this shift has not gone unnoticed within his party, with several Labour MPs expressing strong opposition to the cap.

“Cruel, Punitive” Policy

Kim Johnson, the Labour MP for Riverside in Liverpool, labelled the policy “cruel, punitive and punishing,” and announced her intention to propose an amendment to the King’s Speech to eliminate the cap.

Labour Criticism Grows

Former shadow chancellor John McDonnell and prominent Labour figures like Gordon Brown have also criticised the cap, suggesting amendments to future budgets if the policy is not addressed.

Cross-Party Opposition

Opposition to the two-child benefit cap exists not just within Labour. The Liberal Democrats, Green Party, Reform UK, and Plaid Cymru have all called for the policy to be abolished. Incredibly, even some Conservatives, like Suella Braverman, have called for the cap to be abolished.

Grim Poverty Data

The push from across the political spectrum becomes easier to understand once the sheer scale of the child poverty problem is laid bare, with recent data from the Department for Work and Pensions making for grim reading.

1.6 Million Affected

As of April this year, 1.6 million children lived in households affected by the two-child benefit cap, an increase of 100,000 from the previous year. Of these children, 52% were in households with three children, 29% with four children, and 19% with five or more children.

Charities Call for Abolition

This has led charities such as the End Child Poverty Coalition, the Resolution Foundation, and the Child Poverty Action Group (CPAG) to call for the policy’s immediate abolition. They stress the policy’s role as the single biggest driver of child poverty in the UK and argue that it exacerbates economic disparities and pushes families into deeper poverty.

King’s Speech Crucial

The upcoming King’s Speech, where the new Labour government will outline its legislative agenda, will be a make-or-break moment for this issue. The SNP’s amendment to abolish the two-child cap, if selected for debate by House of Commons Speaker Sir Lindsay Hoyle, could force Labour MPs to declare their stance publicly.

Internal Dissent Likely

Although Labour’s substantial majority means the amendment is unlikely to pass, the vote could reveal significant internal dissent and, along with calls from civil society and charities, could pressure the government to reconsider its position.

Poverty and Policy

The debate over the two-child benefit cap has highlighted critical issues of child poverty and fiscal policy in the UK. The party’s push to abolish the cap is a clever headline-grabbing move from the much reduced SNP, as it hopes to create clear dividing lines between itself and the new Labour government following the election.

Future Uncertain

It remains to be seen whether that pressure will be enough to convince the government to end the two-child benefit cap, which leaves over 1.6 million children living in poverty in the sixth richest nation on earth.

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