Fresh calls for Reeves to lift child benefit cap

Rachel Reeves is coming under renewed pressure to end the two-child benefit cap in October's budget, after the Guardian revealed the chancellor was preparing to keep it in place.

- Kiran Stacey

Only a few weeks before Reeves announces her first major fiscal package, MPs and anti-poverty campaigners are warning that any delay in scrapping the cap will keep hundreds of thousands of children in poverty.

The Guardian reported yesterday that Reeves was preparing to raise taxes and cut public spending at the budget in an attempt to fix a black hole in the budget that is bigger than Treasury officials were expecting.

Among the measures being considered by the chancellor are keeping the benefit cap in place and limiting annual departmental spending rises to an average of 1% above inflation-a move that would mean heavy cuts to unprotected departments.

The revelations have caused dismay among many on the left, who hoped Reeves might end the cap and find extra money for public spending on areas such as local government and courts.