Andy Burnham has urged Keir Starmer to eliminate the two-child benefit limit, stating that there is no ethical justification for continuing the policy. This call comes as the government considers either abolishing or softening the Tory-era policy, which has been criticized for ensnaring hundreds of thousands of children in poverty.
The Greater Manchester Mayor, Andy Burnham, and the Liverpool City Region Mayor, Steve Rotheram, have proposed adopting Gordon Brown’s suggestion. The former Labour Prime Minister recommended increasing gambling taxes in the Budget to generate funds aimed at addressing the high levels of child poverty.
Speaking at an event with The Mirror’s Real Britain columnist Ros-Wynne Jones, Burnham appealed to the party to remove the two-child benefit cap. He emphasized that this action could significantly reduce child poverty in cities like London, Liverpool, and Manchester, proposing that it could be achieved through a gambling tax or a wealth tax.
Burnham argued that eliminating the policy would help uplift the morale within the party, stressing that there is no moral justification for its continuation. He also criticized Labour’s decision to withdraw the whip from seven MPs who opposed the party on the two-child benefit limit.
Recent analysis by the Institute for Fiscal Studies (IFS) revealed that scrapping the policy, which limits Child Tax Credits and Universal Credit to the first two children in a family, could lift around 630,000 children out of poverty in the long run. The government is expected to release the results of its child poverty review, including its assessment of this policy, later this year.
Steve Rotheram expressed envy towards a policy implemented by London Mayor Sadiq Khan, citing free school meals as an example. He indicated a willingness to adopt such a policy but highlighted budget constraints in the Liverpool City Region.
Burnham also urged Labour to prioritize addressing the cost-of-living crisis and reducing people’s expenses. He suggested interventions such as lowering various bills, reducing transportation fares, and potentially introducing reforms to lower council tax in the upcoming Budget to alleviate the financial burden on individuals struggling with high living costs.
