Thousands could suffer as child poverty plan delayed

Exclusive Strategy pushed to autumn amid fears of cost of ending two-child benefit limit

- Pippa Crerar

Labour's flagship child poverty strategy has been delayed until at least the autumn, the Guardian has learned, even though tens of thousands more children are likely to fall into poverty as a result. The decision comes amid Treasury concerns about the cost implications of ending the two-child limit on universal credit and questions inside No 10 over the political benefits of scrapping it.

The policy, which is being led jointly by Liz Kendall, the work and pensions secretary, and Bridget Phillipson, the education secretary, was due to be published in the spring and had been expected to include a recommendation to scrap the controversial cap.

The prime minister, Keir Starmer, has said privately that he wants the option of scrapping the two-child limit kept on the table, and is understood to regard it as a personal priority, as well as a way of demonstrating Labour's commitment to tackling child poverty and reassuring his backbenchers before a difficult vote on welfare cuts next month.

"Keir doesn't want to be the Labour prime minister who has overseen an increase in child poverty on his watch, so I think we will probably get to the point where we do eventually get rid of the two-child limit," a government source said.

But sources said that Morgan McSweeney, Starmer's chief of staff, was opposed to the move, arguing that, while it would be popular with Labour MPs, the public viewed it as an issue of fairness. "He doesn't think they would be getting enough political capital with voters as a result of the money they would have to put in," one source said.

A No 10 source denied there was any split between the prime minister and his chief of staff over the two-child limit. They said the policy was being considered as part of the strategy but that no final decision had been made.