Deputy Prime Minister Angela Rayner has refrained from confirming whether the government intends to abolish the controversial two-child benefit cap, which restricts most families from claiming means-tested benefits for any third or additional children born after April 2017. In a recent interview, she reiterated that any future changes to the policy are just hypothetical at this point.
Rayner made the rounds on the Sunday shows, stopping by BBC’s Sunday with Laura Kuenssberg. As she proudly proclaimed, “I wouldn’t dare go speculate on what our government’s going to do.” Her comments come at an interesting time, with talks continuing within the Labour Party about amending the cap. Policy experts and advocates have criticized the restrictive current cap for trapping children in poverty.
Labour leader Sir Keir Starmer has shown an increased interest in changing the policy ahead of the forthcoming autumn Budget. He noted that ministers would only “make decisions we can afford,” suggesting a cautious approach to any financial implications involved in altering the cap. Starmer’s position is in line with what The Observer has been reporting. We don’t know, but he has privately supported abolishing the cap and asked the Treasury to identify the £3.5 billion required to make this change.
Angela Rayner refused to commit her support for the radical proposal … Removal of the cap. She promised that any changes would be spelled out in unequivocal terms by Shadow Chancellor Rachel Reeves. We expect this announcement to occur at the next fiscal cliff event. This air of uncertainty suggests an ongoing schism within the party over how best to tackle child poverty.
We know that child poverty can’t be fixed by a single government department and she did acknowledge the government’s current efforts to address child poverty. She further welcomed her department’s recent proposals to reverse child benefit payments to higher earners. In March, her department released a memo recommending a number of strategies. This is all part of a huge child poverty initiative which has seen a myriad of publication delays with increasing public pressure on the government.
Rayner framed her discussion around some of the challenges of child poverty and welcomed the government’s recent initiatives. She quickly noted the need for more study.
“I do not leak. I think leaks are very damaging.” – Angela Rayner
As discussions continue, the Labour Party faces internal and external pressure to provide clarity on its position regarding the two-child benefit cap. The autumn Budget will probably be the key point in deciding the fate of this high-profile but controversial policy.
