Labour 'won't end two-child benefit cap' despite fears of rising poverty

Ministers are privately ruling out scrapping the two-child benefit cap despite warnings from charities that a failure to do so could result in the highest levels of child poverty since records began.

- Pippa Crerar

Government sources say charities and Labour MPs who are concerned that wider benefit cuts will push more families into poverty should "read the tea leaves" over Labour's plans.

"If they still think we're going to scrap the cap then they're listening to the wrong people. We're simply not going to find a way to do that. The cap is popular with key voters who see it as a matter of fairness," one source said.

But groups including Barnardo's, Save the Children UK and Citizens Advice argued in a letter to Keir Starmer today that scrapping the two-child benefit limit would be the most cost-effective way to reduce child poverty.

Child Poverty Action Group, which signed the letter, estimated that the number of children in poverty will jump from 4.5 million to 4.8 million by 2029 unless urgent action is taken.

The government is planning to publish its long-awaited child poverty strategy in June, around the time of the spending review, raising expectations that the plan will come with funding attached to try to drive down poverty levels.