Reeves ready to axe two-child benefit cap in the budget

Reeves’s comments show how far she has come since the last election, when she and Starmer decided not to include a promise to remove the cap in the manifesto, arguing they could not afford “unfunded promises”.

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The Resolution Foundation has estimated that removing it in full would cost around £3.5bn by 2029/30.

Starmer continued to defend that position after entering government, even suspending seven MPs last year for voting for a Scottish National party motion calling for an end to the cap.

In response to that rebellion, Starmer commissioned the education secretary, Bridget Phillipson, to lead a task force to make recommendations on how to reduce child poverty.

Phillipson is due to publish her findings around the time of the budget, and is understood to have concluded that fully abolishing the cap is the best way to remove the maximum number of children from poverty.

Allies of the prime minister insist he has always wanted to remove the cap in full as soon as possible.

One said: “Keir has always said he wants to drive down child poverty in government. It would mortify him if it went up on his watch.