Starmer on two-child benefit cap

Keir Starmer's government is facing its first rebellion after seven Labour MPs voted with the Scottish National Party to scrap the controversial two-child benefit cap, which has been criticized for contributing to child poverty. Newly appointed adviser Rachel Statham has publicly called for the cap's removal, labeling it 'punitive', and highlighting the risk of increased child poverty if it remains. Starmer has hinted at a potential policy shift, with Education Secretary Bridget Phillipson stating that lifting the cap will be considered in a review aimed at addressing child poverty. However, confusion persists as Starmer's spokesperson reiterated that there has been no official change in Labour's stance. Former shadow chancellor John McDonnell emphasized that the rebellion illustrates growing dissent within the party regarding the policy. The estimated cost of abolishing the cap is around £2.5 billion annually, raising concerns about the fiscal implications and potential tax increases.