Andy Burnham has urged Keir Starmer to eliminate the two-child benefit cap, stating that there is no ethical justification for its continuation. This call comes as the government contemplates removing or softening the Tory-imposed policy, which has been criticized for ensnaring hundreds of thousands of children in poverty.
The Mayor of Greater Manchester, Andy Burnham, alongside Liverpool City Region Mayor Steve Rotheram, proposed adopting Gordon Brown’s suggestion of increasing gambling taxes in the Budget to generate funds for combating high levels of child poverty.
Speaking at an event with The Mirror’s Real Britain columnist Ros-Wynne Jones, Burnham passionately appealed to the party to lift the two-child benefit restriction, emphasizing the positive impact it would have on reducing child poverty in various cities. He recommended implementing either a gambling tax or a wealth tax to address this issue effectively.
Burnham highlighted that eliminating the policy would not only alleviate demoralization within the party but also emphasized that there is no moral justification for its continuation. He criticized Labour’s decision to withdraw the whip from seven MPs who opposed the two-child benefit limit last year, stating that such actions were contrary to the principles of previous Labour governments.
Recent analysis by the Institute for Fiscal Studies revealed that abolishing the two-child policy, which limits Child Tax Credits and Universal Credit to the first two children in a family, could potentially lift 630,000 children out of poverty in the long run. The government is expected to release the results of its child poverty review, which includes an evaluation of this policy, later this year.
Steve Rotheram expressed admiration for Sadiq Khan’s initiative of providing free school meals in London, expressing a desire to implement a similar program in Liverpool. However, he acknowledged the financial challenges associated with such a move due to the lack of revenue-raising capabilities.
In addition to addressing the two-child benefit limit, Burnham urged Labour to prioritize tackling the cost-of-living crisis and reducing people’s expenses. He advocated for interventions to lower various bills, including transportation fares and council tax, to alleviate the financial burden on individuals struggling to make ends meet.
