Labour U-Turn Ends Hopes for Two-Child Cap Removal

Labour's recent U-turn, specifically the abandonment of planned disability benefit cuts, has led to a £5 billion gap in government spending plans and made scrapping the two-child benefit cap much less likely. The cap, which costs £3.4 billion annually and affects about 1.6 million children, is now considered 'dead in the water' by Downing Street and Treasury sources. Education Secretary Bridget Phillipson and other senior figures say that while ending the cap remains under consideration, fiscal constraints make its removal unlikely soon. The reversal has provoked unrest among Labour backbenchers and child poverty advocates, who see lifting the cap as crucial for reducing child poverty. In response, the government is focusing on measures like expanding free school meals and investing £500 million in family hubs. Labour maintains its commitment to tackling child poverty but notes that trade-offs and difficult choices are unavoidable.