Andy Burnham has urged Keir Starmer to eliminate the two-child benefit limit, stating that there is no ethical justification for its continuation. This appeal comes as the government mulls over the possibility of scrapping or diluting the policy implemented during the Conservative era, which has been criticized for ensnaring hundreds of thousands of children in poverty.
The Mayor of Greater Manchester, Mr. Burnham, and the Mayor of Liverpool City Region, Steve Rotheram, have advocated for adopting Gordon Brown’s suggestion. The former Labour Prime Minister proposed increasing gambling taxes in the Budget to generate funds to address the alarming levels of child poverty.
In a conversation with The Mirror’s Real Britain columnist Ros-Wynne Jones, Mr. Burnham passionately requested the party to revoke the two-child benefit cap, emphasizing the positive impact it would have on reducing child poverty in various regions. He recommended implementing this change through a gambling tax or a wealth tax as a way forward.
Mr. Burnham highlighted that removing the two-child benefit limit would alleviate some of the demoralization within the party and stressed that its continuation lacks a moral foundation. He also criticized the decision of Labour to withdraw the whip from seven MPs who opposed the party on this issue last summer.
Recent analysis by the Institute for Fiscal Studies (IFS) indicated that abolishing the policy, which restricts 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 the evaluation of this policy, later this year.
Mayor Rotheram expressed envy towards a policy introduced by London Mayor Sadiq Khan regarding free school meals, indicating his willingness to adopt such a measure despite the financial challenges it poses.
Furthermore, Mr. Burnham urged Labour to prioritize addressing the cost-of-living crisis and reducing people’s expenses. He proposed interventions to lower various bills, such as transportation fares and council taxes, aiming to alleviate the financial burden on individuals grappling with high living costs.
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