Labour to NOT scrap DWP 'two-child' benefit cap on Universal Credit: 'We can't afford to do that!'
Labour are not planning to scrap the DWP 'two-child' benefit cap anytime soon
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Abolishing the "two-child" benefit cap on payments from the Department for Work and Pensions (DWP) has effectively been ruled out by Labour, according to a Government minister.
Treasury chief secretary Darren Jones appeared to confirm the controversial policy will remain past the upcoming Autumn Budget on October 30 in an interview earlier today.
Speaking to BBC's World at One programme, Jones claimed it was a decision that the Labour Party wanted to make "in our hearts".
These comments come after the latest figures found that borrowing in July rose greater than expected.
For the 12 months to July 2024, costs came to £3.1billion rather than the £1.1billion the majority of economists had forecast.
On top of this, Chancellor Rachel Reeves has previously stated she is committed to addressing the £22billion "black hole" in the public finances.
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The results of the survey show that 60 per cent of Britons think the two-child benefit limit should be kept YouGovMost analysts are pricing in more tax rises from Labour and cuts to spending in an attempt to balance the books.
This means the DWP's "two-child" benefit cap being scrapped will likely not be a fixture in Labour's upcoming Budget.
Jones explained: "You have to just look at the economic statistics that we’re talking about today to understand why we just can’t afford to do that right now."
According to the Treasury's chief secretary, ending the restriction on benefit claimants would cost between £2billion to £3billion annually. while borrowing for the first four months of the financial year was already £4.7billion more than expected.
He noted that the voters returned Labour to power under the promise that public spending would be "back under control".
"That means that we have to make very difficult decisions that in our hearts we wouldn’t want to have to make, and that includes on the two-child cap as well," Jones added.
Under the benefit cap, those in receipt of means-tested payments such as Universal Credit are restricted to support if they have a third child.
Despite the DWP policy remaining in place, the Government has stated it is reducing child poverty.
Currently, Education Secretary Bridget Phillipson and Work and Pensions Secretary Liz Kendall are leading a ministerial task force to develop a child poverty strategy.
Campaigners and charities are lobbying the Government to scrap the benefit cap as 600,000 more Britons are expected to be hurt financially, according to the Institute of Fiscal Studies (IFS).
LATEST DEVELOPMENTS:
Chief Secretary to the Treasury Darren Jones has called into question whether scrapping the cap is possible
GB NewsAlison Garnham, the chief executive of Child Poverty Action Group, previously said: "Children are losing their life chances to the two-child limit now – they can’t wait for the new Government to align every star before the policy is scrapped.
"The Prime Minister came to office pledging a bold, ambitious child poverty-reduction plan and there’s no way to deliver on that promise without scrapping the two-child limit, and fast.
"This is not the time for procrastination or prevarication – the futures of 1.6 million children are on the line."