Keir Starmer seeks to stave off Labour backbench revolt over benefit cap with child poverty taskforce

17 July 2024, 22:37

Keir Starmer has launched a 'child poverty taskforce' as he seeks to avoid a backbench rebellion over a decision not to scrap the two-child benefit cap.

The new taskforce, led by the Education Secretary and Work and Pensions Secretary, will create a 'child poverty strategy' to address its "root causes", Starmer said.

But it came against a backdrop of disappointment that the government had not axed the benefits cap, which limits universal credit and child tax credits to parents' first two children.

Some Labour backbenchers, opposition MPs and children's campaigners have called for the benefits cap to be removed, to alleviate child poverty.

But ministers have said getting rid of the cap would be too expensive - setting the taxpayer back £3 billion per year.

Children's Commissioner wants government to 'get on with' lifting the two-child benefit cap

They cited the parlous state of the public finances, and blamed the Conservative party for leaving them a difficult inheritance.

Starmer he gave way to a Labour MP who asked him about the government's plans to end child poverty during his speech.

And later on Wednesday, Kim Johnson, Labour's MP for Liverpool Riverside, told LBC's Andrew Marr that she was planning to bring an amendment on axing the benefits cap.

She said minister needed to provide "hope" for the people who voted them into government, and called for a timeframe for when the policy would be revoked.

Labour MP: There is 'strong support' on scrapping of two child cap

Ms Johnson said she understood it would be expensive, but added that the government could consider raising taxes further to fund the policy change.

She said: "I understand that we're in a very difficult position at the moment, you know, the worst fiscal crisis since the Second World War.

But she added: "There are opportunities - we are a very rich country." Ms Johnson also said that "14 years of people living in poverty is a long time... the country voted the party into power, you know, they've voted for change, they've voted for hope.

"And that's what the government needs to provide at this moment in time - is hope. So a timetable would be really helpful."

Ms Johnson said that "disproportionately larger families [and] black and Asian families are impacted more negatively than other families" by the policy.

She added that there was support for the removal of the cap from across the party, insisting that the amendment is "not about division - this is about debate".

"Lots of MPs have constituents who have been affected by this, and we know that. And so it's something that lots of MPs would be very concerned about."

Ms Johnson said that "talking about the the amendments... has provided an opportunity for people to start debating and discussing".

She also suggested that the government's child poverty taskforce announced today might persuade her to hold back her amendment.

Speaking to Andrew on Wednesday, Children's commissioner Rachel de Souza also called for the cap to be lifted.

She said: "Of course, for equity’s sake we need to make sure that cap is lifted and frankly it is a moral case for me, but it also bakes in poverty.

"If you’re trying to have a long-term solution to child poverty, then it has just got to be lifted. So, I would just get on with it really and with the mandate this new government has got I would really like to see it lifted."

Ms de Souza said she welcomed the idea of a child poverty taskforce, but added that she wanted to make sure that "the voices of children are in it".

Darren Jones, the Chief Secretary to the Treasury, would not be drawn when speaking to Andrew on whether the taskforce would pave the way for the benefits cap to be axed.

But he said that Labour "can make a positive contribution to tackling child poverty" without getting rid of the benefits cap.

"We've already announced in the King's speech today, tackling things like no fault evictions from private rental accommodation, which is often a huge cause of family poverty.

"We've already committed to free breakfast clubs in schools, we've committed to the child poverty strategy. We've got the employment rights stuff in the King's speech today".

Other political parties also criticised Labour for not scrapping the benefit cap.

Stephen Flynn, the SNP Westminster leader, said Keir Starmer had "failed his first test in government".

And the Scottish Greens described the move as a "huge missed opportunity".

"Keir Starmer could have chosen to immediately lift hundreds of thousands of children and their families out of poverty by scrapping the two child benefit cap, but instead he’s relying on the myth of trickle down economics to put food on the table and pay people’s energy bills," they said.

Announcing the child poverty taskforce, Starmer said: “For too long children have been left behind, and no decisive action has been taken to address the root causes of poverty. This is completely unacceptable - no child should be left hungry, cold or have their future held back.

"That’s why we’re prioritising work an ambitious child poverty strategy and my ministers will leave no stone unturned to give every child the very best start at life."

It comes after the King outlined the new Labour government's plans for the upcoming year at the State Opening of Parliament on Wednesday.

The address - the first under a Labour government since 2009 - was also the most legislation-heavy speech for nearly two decades containing a whopping 40 Bills.

Sir Keir said his Government would be committed "to stopping the chaos of the past 14 years... and returning it to public service,"

"We are finding new scars of the last 14 years in our prisons, in our rivers and seas," the Prime Minister added.

"National renewal is not a quick fix.

"The fight for trust is the battle which defines our political era," Starmer said.

"We are all responsible for the tone and standards we set."

The King Speech lasted 12 minutes and 44 seconds for the King to read out loud and contained 1,421 words, making it the longest monarch's speech at a State Opening of Parliament since 2003.

There is a particular emphasis on improving transport, driving growth, creating jobs and accelerating the building of houses and infrastructure.

However, some have criticised the lack of bills related to health and the NHS.

Economy

Listed in order of priority, the King's Speech is heavily focused on the economy with growth at the heart of the agenda.

They have promised to "take the brakes off Britain" with 15 bills put forward - including the National Weath Fund Bill.

The Government has vowed to introduce a 'fiscal lock' make sure every economic decision is “consistent with its fiscal rules” in order to avoid future budgets like the one introduced by Liz Truss, which was not subject to an OBR forecast.

The King said: “It will legislate to ensure that all significant tax and spending changes are subject to an independent assessment by the Office for Budget Responsibility.”

Nationalisation

Nationalisation also features heavily in the speech with the railways and energy sector to come under public ownership by 2029.

Labour has promised to "put passengers back at the heart of rail services" by bringing contracts into public ownership as they end or if operators fail to meet commitments.

Equally, Great British Energy is pledged to be a publicly-owned clean power company headquartered in Scotland.

"In this way, Great British Energy will help us take back control of the country’s energy, achieve energy independence, create new jobs, save money for households and tackle climate change", the speech states.

Immigration

Labour have immediately scrapped the Rwanda plan which they say failed to deter boat crossings and cost hundreds of millions.

They have vowed to tackle the asylum backlog and give the new Border Security Command and wider law enforcement tools and powers they need to crack down on criminal gangs.

Water

Following endless sewage scandals, water also gets a seperate bill to "reverse the tide on the unacceptable destruction of our waterways".

The Water (Special Measures) Bill puts water companies under "tough special measures" by strengthening regulation and start cleaning up our rivers, lakes and seas.

The bill states water bosses could face severe fines and personal criminal liability for lawbreaking.

Health

Health only has two bills which is considerably fewer than other sections.

The Government states smoking is the the number one preventable cause of death, disability and ill health adding that is causes 80,000 deaths a year in the UK, 1-in-4 of all cancer deaths and kills up to two-thirds of its users.

The Tobacco & Vapes Bill promises to ensure the next generation can never legally be sold cigarettes which will pave the way for a "smoke-free UK".

The bill also pledges to stop vapes and other consumer nicotine products from being deliberately branded and advertised to appeal to children.

The new Mental Health Bill plans to modernise the Mental Health Act 1983 described as "woefully out of date" as it has not been updated in 40 years.

Ministers will also legislate to restrict advertising of junk food to children along with the sale of high caffeine energy drinks to children.

A draft Bill will be brought forward to ban conversion practices.

Housing

Another central element to the plan is a transformation for housing.

The Government has bidded to "turbo charge" the economy is an ambitious plan to overhaul the planning system.

One of the measures is a commitment to major planning reform to address what Labour sees as a major block to building both houses and vital national infrastructure.

Similarly, Labour also promise to support renters with the Renters’ Rights Bill which will "overhaul the private rented sector".

The government is "determined to take action" where the previous Government failed and transform the rights for the 11 million private tenants.

This will be done by abolishing "no fault evictions", giving tenants the right to request a pet and making it illegal for landlords to discriminate against tenants in receipt of benefits or with children amongst others.

Workers Rights

The speech promises to improve workers rights by banning exploitative zero-hour contracts, ending 'fire and rehire' as well as making ​flexible working ​​​the ​default amongst others.

Under the Employment Rights Bill, Labour has pledged a genuine living wage which "accounts for the cost of living" and the removal of discriminatory age bands.

The bill also criticises and aims to address problems such as the sluggish productivity rate and the rate of wage growth as well as other issues left unresolved such as the national gender pay gap (14.3%) and sexual harassment in the workplace.

Security

The King expressed explicit support for Ukraine joining NATO.

He also says the government will look to “improve the United Kingdom's trade and investment relationship with the European Union. 

The government has also vowed “play its part in trying to secure long-term peace and security in the Middle East," adding it is committed to a two state solution with a "safe and secure Israel alongside a viable and sovereign Palestinian state".

The speech states the new 'Hillsborough Law' will place a legal duty of candour on public servants and authorities in order to "improve transparency and accountability".

"It will address the unacceptable defensive culture prevalent across too much of the public sector - highlighted by recent reports such as Bishop James Jones’s report into the experiences of the Hillsborough families and the recent Infected Blood Inquiry report.

"It is part out our wider efforts to create a politics of public service."

The Government also reaffirmed its commitment to bringing in Martyn’s Law which came about after 22 people were killed in the Manchester Arena bombing in 2017.

The speech specifically thanks Figen Murray, the mother of Martyn Hett who tragically died in the attack.

"Her campaigning has been crucial in driving this Bill and raising awareness about security measures at public venues."

Education

Labour have pledged measures to remove the exemption from Value Added Tax for private school fees, which they say will enable the funding of 6,500 thousand new teachers.

Additionally, the Children’s Wellbeing Bill pledges to improve opportunities for children by bringing in new measures such as free breakfast clubs in every primary school and limiting the number of branded items of uniform and PE kits a school can require.

House of Lords

The governemnt has described the continued presence of hereditary peers in the House of Lords as "outdated and indefensible" and have vowed to end it.

They have described the reform as "long overdue and essential".

Meanwhile, a new bill will support efforts to increase the number of female bishops sitting in the Lords.

Devolution

The speech bemoans how "highly centralised" the UK is compared to other OECD countries such as France or Germany.

It states: "The OECD has reported that “if the autonomy of UK cities was to increase to the same level as Helsinki, productivity would increase across all cities by an average of 12 per cent”.

Ahead of the state opening, ten members of Youth Demand have been arrested in Westminster on suspicion of conspiracy to cause public nuisance after the protest group stated it planned to disrupt the event.

On social media the Metropolitan Police said: "Last week, Youth Demand said they planned to disrupt the event.

"An hour ago, officers arrested 10 of them in Westminster on suspicion of conspiracy to cause public nuisance.

"A further 20 to 25 have now gathered in Victoria Embankment Gardens and further arrests are being made."

Last week the group called for supporters to assemble at Victoria Embankment Gardens on Wednesday morning in protest over Prime Minister Sir Keir Starmer's handling of the Israel-Hamas war.