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Labour Defers Two-Child Benefit Cap Decision to October Budget

Stephen Kinnock says the cap’s fate rests with Chancellor Reeves’ October Budget following calls for its abolition.

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Overview

  • Care minister Stephen Kinnock says discussions on lifting the cap are ongoing but emphasizes that repeal is a decision for the Chancellor, not current government policy.
  • Chancellor Rachel Reeves will deliver her second fiscal statement in October, setting the timetable for any change to the two-child limit.
  • Former leader Lord Neil Kinnock has urged Labour to abolish the cap, claiming it could reduce child poverty by about 600,000 and reinforcing calls from charities and some MPs.
  • Independent forecasts from the National Institute of Economic and Social Research warn of a roughly £50 billion hole in public finances, constraining options to repeal the cap.
  • Seven Labour MPs faced suspension last July for backing an SNP move to ditch the cap, underscoring ongoing party divisions over welfare reform.