Exclusive: Labour Rebels Set Their Sights On Lifting 2-Child Benefit Cap After Welfare U-Turn

Protesters gather to demonstrate in Westminster against cuts to the welfare state.Labour MPs are to step up their fight to end the two-child benefit cap – as the government’s agenda was thrown into chaos by Keir Starmer’s welfare climbdown.The prime minister was forced into an 11th-hour U-turn on cuts to personal independence payments (PIP) to avoid a humiliating Commons defeat.It meant the £5 billion of savings the welfare reforms were initially meant to deliver have been almost completely wiped out, leaving chancellor Rachel Reeves having to consider fresh tax rises to fill the gap.HuffPost UK has now learned that having secured the PIP climbdown, rebel Labour MPs will step up their attempts to end the two-child benefit cap.It was introduced by the Tories and prevents families from claiming means-tested benefits for any more than two of their children born.One Labour MP said: “The fight now moves to the two-child cap and how we can raise more money from tax.”The prime minister has said he would “look at” lifting the cap, but that is now far less likely given the estimated £3.5bn cost.Meanwhile, No.10 insiders have admitted that the government’s future agenda has been thrown up in the air by the welfare bill chaos.“All the things we had worked up to do next thing are now almost impossible,” said one official. ”Pat McFadden, the Chancellor of the Duchy of Lancaster, warned Labour MPs there would be “financial consequences” to the welfare climbdown.He told the BBC: “There is a cost to the decision taken yesterday, there’s no denying that.“You can’t spend the same money twice. So more money spent on [welfare] means less for some other purpose.”He insisted Reeves would stick to Labour’s election pledge not to increase the rates of income tax, VAT or national insurance.However, he refused to deny that income tax thresholds could remain frozen, a move which would raise billions by dragging more workers into higher bands.Related...Starmer Brutally Mocked After Shambolic Welfare U-Turn: 'Epic Political Mismanagement''It's A F*****g Farce': Labour MPs Turn Their Fire On Keir Starmer Over Welfare ShamblesKeir Starmer Hit By Major Labour Rebellion As MPs Back His Welfare Bill

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