Keir Starmer is apparently looking to scrap the two-child benefit cap in Labour’s latest welfare U-turn. This decision comes after deputy leader Angela Rayner caused an uproar by calling for child support to be taken away from around 500,000 parents across the UK. A leaked document revealed this controversial move by Rayner. Starmer’s plan to eliminate the cap limit is seen as a way to combat child poverty, with MPs threatening to rebel against the government’s welfare reforms.
The civil war within the Labour party deepened when it emerged that Rayner is eager to “claw back” crucial payments from households where the highest earner falls within the £50,000 to £80,000 income bracket. This move would involve reversing a significant tax break introduced by the Conservatives, potentially saving families up to £1,300 annually. Starmer has made it known privately that he is committed to axing the cap limit in an effort to reduce child poverty effectively and efficiently. The cost of this decision is estimated to be around £3.5 billion, marking the second major welfare U-turn following the recent reversal on the winter fuel allowance.
The leaked document also revealed that Rayner’s proposal would impact teachers, junior doctors, police officers, and others who were promised relief from increasing bills. The current system, which determines benefit eligibility based on individual salary rather than total household income, has long been a source of frustration for many parents. Despite former Chancellor Jeremy Hunt’s efforts to review and address this issue, Labour has quietly abandoned those plans. The decision to scrap the two-child cap would undo one of the most popular measures from Hunt’s 2024 Budget, which raised the income thresholds at which families would start losing child benefit.
As tensions rise within the Labour party, some MPs are pushing for a shift to the left, while others question the government’s priorities in tackling issues such as benefit cuts and pensioner welfare. Angela Rayner’s ambitions for the top job are evident, causing concern among some party members. Amidst the challenges faced by the government, including rising inflation and borrowing, Keir Starmer’s leadership is being put to the test. The need to address key issues such as the economy, immigration, and defense spending is becoming increasingly urgent as Labour faces criticism and internal dissent.
Maybe it’s just me, but it seems like Keir Starmer’s government is facing some tough challenges ahead. Despite efforts to boost the economy and address pressing issues like inflation and borrowing, the criticism and internal dissent within the Labour party are hard to ignore. With Angela Rayner pushing for significant changes in welfare policies, including the scrapping of the two-child benefit cap, the party’s direction is being questioned. As the government grapples with various issues, from immigration to defense spending, the need to listen to voters and address their priorities becomes more crucial than ever. The path ahead for Keir Starmer and Labour is uncertain, but one thing is clear – tough decisions lie ahead.
