Labour's Policy Rethink: Scrapping the Two-Child Cap on Welfare?

Britain's Labour government is reassessing its two-child limit on welfare payments, seen as a controversial policy. This reconsideration follows recent local election setbacks and a challenge from Nigel Farage's Reform UK party. The government faces pressure to address child poverty and justify past fiscal cuts.

The Labour government in the UK is reevaluating its two-child welfare payment limit, a policy initiated by the Conservatives in 2017, amid plummeting poll numbers and a need to revise unpopular decisions. This possible policy shift comes in the wake of recent poor local election results.

Prime Minister Keir Starmer indicated a willingness to reverse cuts on winter fuel payments for the elderly, with the government also mulling over scrapping the two-child benefit cap. Education Minister Bridget Phillipson confirmed discussions, emphasizing the government's commitment to addressing child poverty.

The Resolution Foundation highlighted that abolishing the two-child cap would cost approximately £4.5 billion but could effectively reduce child poverty. Labour's approach underlines a balancing act between correcting previous fiscal policies and remaining within strict budgetary constraints.

(With inputs from agencies.)