Keir Starmer is facing a frontbench rebellion after he insisted an incoming Labour government would keep the Tories’ two-child benefit cap.
HuffPost UK has been told that the decision has caused “meltdown” among members of the shadow cabinet, with some even threatening to resign unless the policy is ditched.
Under the cap, parents are not able to claim child tax credit or universal credit for any third or subsequent child born after April 2017.
Appearing on the BBC’s Sunday with Laura Kuenssberg programme yesterday, the Labour leader was asked if he would scrap it if he wins the next election.
He replied: “We are not changing that policy.”
That is despite the fact that Starmer tweeted in 2020 that he wanted to scrap the “inhuman” measure.
And just last month, shadow work and pensions secretary Jonathan Ashworth described the two-child cap as “heinous”.
It is understood Starmer and shadow chancellor Rachel Reeves do not want to commit Labour to spending the estimated £1.8 billion it would cost to reverse the cap.
In a thinly-veiled swipe at the pair, former shadow chancellor John McDonnell tweeted: “It’s pretty clear that we now need an honest and fundamental discussion in the Labour Party about child poverty, its causes and the impact of the policies introduced by the Tories, including the 2 child limit, because it’s obvious some in the party don’t fully appreciate its impact.”
Labour MP Mick Whitley tweeted: “The two-child cap is causing misery for thousands of young people in Birkenhead. This is the wrong call.”
A Labour source said: “They’re in meltdown over this. There’s a lot of anger among MPs and some frontbenchers have threatened to resign.”
But one shadow cabinet member said: “It’s possible to both be critical of the two-child policy but also say we can’t make spending commitments. We have to be fiscally disciplined.”
A source close to Starmer told HuffPost UK: “You can think it’s a heinous policy but also accept that there is absolutely no money and unless there is £2 billion sloshing around, we can’t reverse it
“Members of the shadow cabinet who are unhappy should be setting out from their budget how we’re going to fund it.”
The source added: “I don’t think for a second Keir’s changed his mind on the benefit cap, but there is no money and we have to be honest with people about this.”