Liverpool Lib Dems call on Labour MPs to “rethink” two-child benefit limit vote in Parliament

Tuesday night saw Liverpool Labour MPs repeatedly vote to retain the two-child benefit cap, in what has been called a “disappointment” by the Liverpool Liberal Democrats.

Liberal Democrat MPs supported their amendment to the King’s speech, which contained a proposal to scrap the two-child cap.

The measure, which means that parents cannot claim universal credit or tax credit on more than two children, was introduced by Theresa May’s government in April 2017. The cap affects 450,000 families across the country as of April 2024. Affected households lose approximately £3500 per year for each third or subsequent child.

The Resolution Foundation has said that “the policy is driving up rates of child poverty among large families” and that if the cap was abolished it would bring 490,000 children out of poverty. The Institute for Fiscal Studies said that “The two-child limit is likely one driver of this recent increase in relative child poverty rates for larger families.” The Child Poverty Action Group has said that scrapping the cap would be “the most cost-effective way of reducing child poverty”. A 2023 study from the University of York 

Scrapping the policy has been in every Liberal Democrat General Election Manifesto since 2017.

Cllr Carl Cashman, Leader of the Liverpool Liberal Democrats, said: 

“It’s a real disappointment to have local Labour MPs voting against our efforts to scrap the two-child benefit cap. 

“Local people have been promised change, but last night we saw this unfair policy, introduced by previous Conservative governments, kept in action. They must rethink keeping the limit.

“In the debate with our motion tonight, we heard all the Labour members call out the cruelty of the policy. But they were silent on the complicity of four out Liverpool’s five MPs.  They called this gesture politics – I call it taking a stand by our principles.

"I'm glad that the whole council backed the principle of scrapping the two child cap.

“I am proud to see Liberal Democrat MPs leading the charge against this unfair measure. I hope we will get an explanation from this Labour Government as to why they aren’t prepared to support this simple and cost-effective way to reduce child poverty.”