Andy Burnham has urged Keir Starmer to eliminate the two-child benefit limit, stating that the policy lacks moral justification. This plea comes as the government contemplates abolishing or softening the Tory-era policy, which is held responsible for ensnaring countless children in poverty.
The Greater Manchester Mayor, Mr. Burnham, and Liverpool City Region Mayor, Steve Rotheram, have advocated for adopting Gordon Brown’s suggestion. The former Labour Prime Minister recommended increasing gambling taxes in the Budget to generate funds aimed at addressing the alarming rates of child poverty.
Speaking at an event with The Mirror’s Real Britain columnist Ros-Wynne Jones, Mr. Burnham implored the party to remove the two-child benefit cap, emphasizing the positive impact it would have on alleviating child poverty in various regions. He proposed implementing a gambling tax or a wealth tax to address the issue effectively.
Mr. Burnham highlighted that eliminating the policy would not only uplift children out of poverty but also boost morale within the party. He criticized Labour’s decision to withdraw the whip from seven MPs who opposed the party on the two-child benefit limit.
The Institute for Fiscal Studies (IFS) recently estimated that scrapping the policy, which limits Child Tax Credits and Universal Credit to the first two children in a family, could elevate 630,000 children out of poverty in the long run. The government is anticipated to release the results of its child poverty review, including an evaluation of the policy, later this year.
Mayor Rotheram expressed his admiration for a policy implemented by Mayor Sadiq Khan of London – free school meals. He emphasized the financial constraints hindering their ability to introduce a similar policy due to the lack of revenue-raising mechanisms.
Additionally, Mr. Burnham urged Labour to concentrate on addressing the cost-of-living crisis and reducing people’s expenses. He suggested interventions such as lowering various bills, reducing transport fares, and potentially introducing reforms to decrease council tax burdens in the upcoming Budget to alleviate the financial strain on individuals.