PM's benefits U-turns put Chancellor under pressure

RACHEL Reeves is under pressure to find money to fund the winter fuel payment U-turn and ease child poverty amid mounting pressure from inside Labour.

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The Chancellor will set out her spending review next month, allocating funding to departments for the coming years, with £113 billion in capital projects to transform housing and infrastructure.

But she faces calls to spell out how she will fund Sir Keir Starmer’s goal of restoring winter fuel payments to pensioners and is under pressure to respond to mounting calls for the two-child benefit cap to be axed at a cost of around £3.5 billion.

Measures aimed at saving money from the welfare bill and encouraging people on benefits into work could also be watered down in the face of a backbench revolt.