PM Keir Starmer Faces Pressure From MPs and Activists to End the Two-Child Benefit Cap. But Will He?

The UK’s newly installed Labour government finds itself under increasing pressure to lift benefit restrictions on parents—policies that were previously enforced by the Conservative administration.

On Tuesday, the government withstood an emergency vote proposed by the Scottish National Party (SNP) to eliminate the two-child limit on family benefits. This contentious policy, however, remains in place after the amendment was rejected by 363 votes to 103. Seven Labour MPs defied party orders and voted in favor of the amendment but have since been suspended for six months.

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Since 1946, UK governments have been providing financial aid to offset the costs of raising children.

However, benefits for families have come under increasing scrutiny and reductions in recent years. In 2017, the Conservative government introduced the two-child limit on family benefits, meaning assistance would only be given for a maximum of two children per family.

The policy has often been criticized for disproportionately affecting the poorest households, becoming a flashpoint for politicians, public figures, and anti-poverty advocates.

Many had hoped that the Labour Party, upon gaining power, would revoke the controversial two-child cap.

Yet, Prime Minister Keir Starmer and his Chancellor of the Exchequer, Rachel Reeves, have so far been hesitant to act. Although both have acknowledged the severe levels of child poverty in the UK, they have pointed to the fragile state of the country’s finances, arguing that extending benefits isn't currently feasible.

What Is the Two-Child Benefit Cap?

Simply put, this cap restricts the payment of state benefits—namely Universal Credit and child tax credits—to only two children per family.

The Conservative government implemented the policy in April 2017 as part of a broader austerity agenda. It applies to children born after the introduction date.

At the time, then-Chancellor George Osborne argued that the policy was necessary to prevent overly large benefit payouts, stating that it would ensure families receiving benefits faced the same choices about having children as those families exclusively reliant on their own earnings.

Although some exceptions are available—such as in cases of rape—critics argue that the policy forces victims of sexual violence to relive their trauma just to receive what they are entitled to. Labour MP Rosie Duffield highlighted this grim reality in the *Times*, writing, “This policy tells women: reveal to strangers that your subsequent children are the result of rape, and we’ll pay you after all.”

How Has the Two-Child Benefit Cap Impacted Families?

Charities and advocacy groups focusing on child poverty have long argued that the two-child cap has exacerbated economic struggles for many UK families.

Lynn Perry, CEO of the children’s charity Barnardos, referred to the policy as a “sibling penalty,” noting, “Most families receiving Universal Credit are already working, but many are vulnerable due to events like divorce, job loss, or the death of a loved one.”

She continued: “This policy denies these families the means to cover basic necessities, consigning children to a life of poverty. These children will carry the consequences of this policy for the rest of their lives.”

The Institute for Fiscal Studies (IFS) reports that the cap costs low-income families around £4,300 ($5,550) per year, reducing their household income by approximately 10 percent.

Government figures have identified that single-parent families make up at least half of those affected by the cap, while 57 percent of affected households have at least one adult in paid employment.

The number of children impacted by this policy is expected to grow, even as the UK’s overall population is anticipated to shrink in the coming years.

Last year, 1.6 million children—equating to one in nine UK children—were affected by the limit, according to the IFS. That figure rose by 100,000 from the previous year, with projections suggesting another 250,000 children will be affected by next year. By 2029, that figure could reach half a million additional children.

Further worsening the situation is an earlier cap, enacted in 2013, which places an overall limit on the total amount of state benefits families can receive. This mainly impacts households where adults work fewer than 16 hours a week.

Is the New Government Likely to Repeal the Cap?

Labour’s overwhelming election win on July 4 has not resolved internal divisions over the two-child benefit limit.

Several Labour MPs, including Anas Sarwar, the party's leader in Scotland, have publicly urged the government to abolish the cap.

Zarah Sultana, one of the seven Labour MPs suspended for voting in favor of overturning the limit, stated on Wednesday that she had “no regrets in standing against child poverty.”

Prime Minister Starmer has previously opposed scrapping the cap, citing the potential £3 billion ($3.87 billion) annual cost amid the nation’s financial troubles.

However, amidst growing discontent within Labour ranks over the issue, Starmer hinted earlier this week that he may reconsider. Despite this, any immediate policy change was ruled out by Liz Kendall, the Work and Pensions Secretary. In a Tuesday interview on Sky TV, Kendall addressed the administration’s broader poverty-reduction strategy and said, “We’re reviewing [the cap], but we must clarify how any new commitments will be funded.”

Who Else Wants to See the Cap Repealed?

Support for abolishing the cap isn’t limited to Labour MPs. A growing coalition in Parliament seems to agree that the policy needs to go.

The Green Party, Liberal Democrats, and SNP—all opposition parties—alongside numerous NGOs, anti-poverty campaigners, and even former Conservative Home Secretary Suella Braverman (noted for her right-wing views), have all lent their voices to calls for change.

In a speech last May, former Labour Prime Minister Gordon Brown lamented the effects of the cap, telling the BBC: “The tragedy is that we are shaping the future of our country by turning a blind eye to the children we’ve plunged into poverty. Their chances of a fair start in life—and of succeeding—are being cruelly neglected.”