Reeves fails to deny reports two child benefit cap will be scrapped

Rachel Reeves did not deny reports that she will scrap the two child benefit cap at the next budget, although she suggested the decision would be subject to financial constraints.

It comes after The Guardian reported that the Treasury is exploring a new tapered system, with parents getting the most benefits for their first child and less for subsequent children.

Other options also include, limiting the cap to three or four children, or lifting it only for working parents on universal credit, the paper reported.

Asked about the reports at a fringe event at the Labour conference, she said: “Keir said in his speech that we will reduce child poverty in this Parliament, but we will set out policies in the budget.

“I think we’ve been pretty clear this week that we can’t commit to policies without explaining where money is going to come from.”

Read the latest news, analysis and commentary on the 2025 Labour party conference in Liverpool here on LabourList.

She said there were “real financial constraints” on the budget at the moment, including tariffs and high inflation.

“I would be the first person to want to find some money down the back of the sofa to pay for lots of different things. But I have to be Chancellor in the world as it is, not in the world as I might like it to be.”

Subscribe here to our daily newsletter roundup of Labour news, analysis and comment– and follow us on Bluesky, WhatsApp, X and Facebook.

Asked about whether the current system would be replaced by a tapered one she said she would set out policies in the budget, not before.

• • SHARE: If you have anything to share that we should be looking into or publishing about this story – or any other topic involving Labour– contact us (strictly anonymously if you wish) at [email protected].
  • SUBSCRIBE: Sign up to LabourList’s morning email here for the best briefing on everything Labour, every weekday morning.
  • DONATE: If you value our work, please chip in a few pounds a week and become one of our supporters, helping sustain and expand our coverage.
  • PARTNER: If you or your organisation might be interested in partnering with us on sponsored events or projects, email [email protected].
  • ADVERTISE: If your organisation would like to advertise or run sponsored pieces on LabourList‘s daily newsletter or website, contact our exclusive ad partners Total Politics at [email protected].