SNP urges Starmer not to ‘punish’ children by keeping benefit cap

Sir Keir Starmer has been urged not to “punish” children by keeping the two-child cap following Labour’s U-turn on benefit cuts.

The SNP urged the Prime Minister to end the limit amid reports it could stay as a result of Labour scrapping most of its welfare reforms.

The UK Government had attempted to save around £5 billion a year by cutting welfare, mostly for those claiming disability and health benefits, but U-turned following a revolt from MPs.

The move means the Treasury may not see any savings at all as the welfare budget is still set to rapidly rise in the coming years.

Media reports suggest the U-turn could see ministers keep the cap in order to save money.

The Prime Minister previously indicated he would only abolish the two-child cap, which prevents parents from claiming child tax credit or universal credit for more than two children, when it had the money to do so.

Asked in May whether he would scrap the policy, he said: “We’ll look at all options of driving down child poverty.”

The SNP, which will mitigate the limit in Scotland by 2026, has urged the UK Government to scrap the cap, which it says is pushing thousands of children into poverty.

The party said analysis from the House of Commons Library found that 2.3 million families could be lifted out of poverty if the UK Government matched Scottish Government policies.

These included the Scottish Child Payment, abolishing the two-child benefit cap and scrapping the so-called bedroom tax.

According to the House of Commons Library, these measures would lift 96,000 families in Scotland out of poverty.

The analysis also shows that over the past decade the number of children living in poverty in the UK has risen from 3.7 million (27%) in 2013/14 to 4.5 million (31%) in 2023/24.

That number is expected to rise to 4.6 million (33%) by 2029-30, according to the data.

SNP deputy Westminster leader Pete Wishart urged the Prime Minister to have a rethink on his welfare plans.

He said: “Keir Starmer must not punish children for his disastrous mistakes over the Labour Party’s cuts to disabled people.

“It is utterly shameful that as a direct result of Labour Party austerity cuts, child poverty is rising to record levels in the UK – and the Prime Minister is failing to lift a finger to tackle it.

“Scrapping the two-child benefit cap is the absolute bare minimum – and it should have been done on the Labour Government’s first day in power.

“It’s pathetic that senior Labour Party figures now want to keep this punitive welfare cut just to show rebel MPs who’s in charge.

“Saving Keir Starmer embarrassment is not more important than tackling child poverty.”

Wishart urged Starmer not to “drag his feet” on the two-child cap and to instead match the SNP’s Scottish Child Payment with a similar policy for the entire UK.

He added: “Thanks to SNP action, Scotland is the only part of the UK where child poverty is falling.

“Unless Keir Starmer urgently follow’s Scotland’s lead, his lasting legacy will be pushing millions of children into destitution.”

A UK Government spokesperson said: “We are determined to bring down child poverty. We’ve just announced a new £1 billion package to reform crisis support, including funding to ensure the poorest children do not go hungry outside of term time.

“This comes alongside the expansion to free breakfast clubs and the move to make over half-a-million more children eligible for free school meals.

“We have also increased the national minimum wage and are supporting 700,000 of the poorest families by introducing a fair repayment rate on universal credit deductions.

“We will publish an ambitious child poverty strategy later this year to ensure we deliver fully funded measures that tackle the structural and root causes of child poverty across the country.”

Scottish Labour MP Gregor Poynton said: “After nearly two decades, the SNP government have failed Scotland’s children.

“The educational attainment gap between the richest and poorest kids continues to widen. Almost one in six young Scots are not in education, employment, or training.

“The SNP’s housing crisis means 10,000 children are living in Scotland without a home to call their own. It’s clear we need a new direction.

“Labour has taken action to tackle poverty in Scotland by increasing the minimum wage, giving a pay rise to 200,000 of the lowest paid Scots.

“Labour is bringing down energy bills for all, particularly for the poorest families.

“The UK Labour Government ended Tory austerity in Scotland and provided the biggest budget settlement for Scotland in history, meaning more money for our public services.

“The SNP government has the money, they have the powers, but they are out of ideas, out of excuses and out of time.”