Chancellor Rachel Reeves is confronting a significant internal party revolt as she prepares to make a major Department for Work and Pensions (DWP) announcement within the next 48 hours.
Budget Announcement Sparks Internal Conflict
The Labour Chancellor is set to officially scrap the controversial two-child benefit cap on Wednesday, November 26, as a centrepiece of her Autumn Budget. This long-anticipated move forms part of broader welfare changes that include uplifts to Universal Credit payments and other above-inflation increases.
However, senior figures within the party have issued stark warnings that these changes risk provoking fury among the electorate. There are growing concerns that Reeves will face a major public backlash unless she clearly signals the government's intention to reduce the wider welfare bill elsewhere.
Party Pressure and Public Perception
One senior Labour source emphasised the political tightrope the Chancellor is walking. "She has to hint that something on cutting the bill is coming," they stated, highlighting the need to balance different audience expectations beyond just the Parliamentary Labour Party.
Luke Tryl, executive director of More in Common, analysed the public mood, noting: "Britons aren't blind to the challenges facing the chancellor. The public overwhelmingly feels that the economy and public finances are deeply broken." He added that recent events have shattered confidence in the government's ability to fix these issues.
Government Justification and Anti-Fraud Measures
A government source defended the policy shift, stating: "Growing up in poverty condemns children to a lifelong cost of living crisis as the evidence shows they do less well in school and end up earning less over their lifetimes."
Meanwhile, the Treasury is reinforcing its stance against welfare system abuse. A Treasury source confirmed: "We will never tolerate fraud, error or waste in the welfare system. The chancellor is doubling down on this next week – extending targeted case reviews to save taxpayers billions and ensure help goes to those who genuinely need it."
The coming days will prove crucial for the Chancellor as she navigates both party management and public opinion regarding these significant welfare reforms.
