Sir Keir Starmer has defended his government's controversial decision to scrap the two-child benefit cap, a move that will see bumper Universal Credit payments for larger families as he prepares to leave Downing Street. The outgoing Prime Minister insists the policy will lift half a million children out of poverty, despite criticism that it disincentivises work.
Scrapping the Two-Child Cap
Labour, which returned to power in 2024, recently implemented the change in April 2026. Previously, families could only claim Universal Credit for two children. Now, parents with three or more children can claim additional support. Households with three children will receive an extra £304 per month, while those with four children will get £608 more each month.
According to the government, this policy is central to its mission of tackling child poverty. However, opponents argue that boosting benefits discourages people from seeking employment.
Starmer's Defence
Defending his record in the Commons this week, Starmer said: "Thanks to this Chancellor we've delivered the fastest falling NHS waiting lists in 17 years, the money for new rights for renters and working people. And we're lifting half a million children out of poverty."
He added: "The test for any Prime Minister is handing over the country in better shape than you found it. I know I can do that." Starmer concluded: "Because of our decisions, my decisions, the country is moving in the right direction in a stronger and a fairer Britain. Ending austerity, investing in our public services, the fastest falling NHS waiting lists for 17 years, more rights for workers, more rights for renters, standing with Ukraine, Britain's reputation restored and half a million children being lifted out of poverty. Change promised by a Labour Government, fought for by a Labour Government, change delivered by a Labour Government."
Divisive Policy
The policy has proven divisive, with public opinion split between those who see it as a necessary measure to support the poorest and those who believe it creates dependency. Starmer's legacy will be closely tied to this decision as he exits Number 10.
