Keir Starmer is at odds with his powerful chief of staff over whether to scrap a two-child cap on benefits, according to multiple people familiar with the matter, a costly policy move that the British prime minister is under pressure to make after bruising local election results.
Starmer favors lifting the limit as a way to demonstrate the ruling Labour Party’s commitment to alleviating child poverty, said the people, who asked not to be named discussing internal government matters. His chief of staff, Morgan McSweeney, however, has been one of the main opponents of the move, contesting the estimated £2.5 billion ($3.3 billion) expense ahead of the government’s most recent fiscal statement in March.
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Starmer has faced repeated calls from Labour lawmakers to reverse the cap, which currently limits child benefit payments to two children per household. Rather than heed pressure to change the policy immediately upon entering government in July, the government delayed a decision by announcing a consultation on a broader child poverty strategy.
McSweeney urged Starmer at that time to rule out scrapping the two-child cap, according to people familiar with the matter. He argued that polling shows that Labour voters view the cap as fair, the people said. Starmer pushed back and removing the cap has remained an option under consideration by the government.
Starmer, Chancellor of Exchequer Rachel Reeves and Work and Pensions Secretary Liz Kendall proposed scrapping the cap in the March statement, according to the people, before concluding there wasn’t enough money to fund it. McSweeney was again opposed to the idea, the people said.
The Downing Street official said any suggestion that McSweeney had blocked a worked-up plan supported by three ministers would not be true.
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Former Labour Prime Minister Gordon Brown added to the pressure on Starmer on Wednesday, saying that scrapping the cap was “the cost-effective way of getting more children out of poverty” in an interview with ITV. He separately told Sky News that Reeves could raise £3 billion by either increasing taxes on the gambling industry or reducing the interest paid to commercial banks for their deposits held by the Bank of England.
One government figure in favor of the scrapping the cap countered McSweeney’s polling argument by pointing out that most Labour voters also don’t want child poverty to go up. Lifting the cap is the most financially efficient way of doing that, the person said.