Andy Burnham has urged Keir Starmer to eliminate the two-child benefit limit, stating that there is no ethical foundation for the policy to persist. This plea comes as the government contemplates either scrapping or diluting the Tory-era policy, which has been accused of ensnaring hundreds of thousands of children in poverty.
The Greater Manchester Mayor, Mr. Burnham, along with Liverpool City Region Mayor Steve Rotheram, proposed adopting Gordon Brown’s suggestion. The former Labour Prime Minister recommended increasing gambling taxes in the Budget to generate funds to combat the alarming levels of child poverty.
Speaking at an event with The Mirror’s Real Britain columnist Ros-Wynne Jones, Mr. Burnham appealed for the removal of the two-child cap on benefits, emphasizing the positive impact it would have on reducing poverty in various cities. He suggested implementing this change through either a gambling tax or a wealth tax.
Mr. Burnham argued that abolishing the policy would help alleviate the demoralization within the party, stating that there is no moral justification for its continuation. He criticized Labour’s decision to withdraw the whip from seven MPs who opposed the party on the two-child benefit limit.
According to a recent report by the Institute for Fiscal Studies (IFS), eliminating the policy that limits Child Tax Credits and Universal Credit to the first two children in a family could lift 630,000 children out of poverty in the long run. The government is expected to release the results of its child poverty review, including a consideration of this policy, later this year.
Mr. Rotheram expressed admiration for a policy implemented by London Mayor Sadiq Khan, highlighting the provision of free school meals. He expressed a desire to introduce a similar initiative but acknowledged the financial challenges faced due to the inability to raise additional revenue.
Furthermore, Mr. Burnham urged Labour to prioritize addressing the cost-of-living crisis and reducing people’s expenses. He recommended interventions to lower various bills, such as transport fares and council tax, emphasizing the need to alleviate the financial burden on individuals who are currently struggling with high living costs.
